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Request for Proposals for Verification Services for the AgResults Zambia Biofortified Maize Pilot

Date: December 1, 2016

From: AgResults Secretariat

To: Potential Offerors

Subject: Request for Proposals (RFP) to Provide Verification Services for the AgResults Zambia Biofortified Maize Pilot

The Secretariat of AgResults (“Secretariat”) invites your organization to submit a proposal (“Proposal”) to provide verification services in accordance with this Request for Proposals (“RFP”) for the AgResults Zambia Biofortified Maize Pilot (“Pilot”).

The Pilot is a results-driven pilot project that is part of the AgResults initiative financed by the governments of Australia, Canada, the United Kingdom and the United States, and the Bill & Melinda Gates Foundation. For more information about AgResults, please see Appendix 3 and www.AgResults.org.

The Pilot is a five-year, results-driven, pull mechanism pilot in Zambia designed to support the introduction of biofortified provitamin A (PVA) maize into commercial rural and urban markets through incentive grants for milling and seed companies. Maize biofortification is a low-cost method to combat vitamin A deficiencies, which cause up to 250,000 child deaths annually in Africa. Vitamin A deficiency causes preventable blindness in children and increases the risk of disease and death from infections. In Zambia, research indicates vitamin A deficiency rates as high as 31% in children and 21% in women. Vitamin A is critical for maternal and child health and for reducing mortality among these groups.

The Secretariat expects to award a Fixed Price Contract to the organization(s) (the “Verifier”) selected and hired to provide the Pilot verification services detailed in this RFP for a Base Period of one year with three Option Periods:

Base Period 1: February 1, 2017, to January 31, 2018 Base Period 2: February 1, 2018 to June 30, 2018 Option Period 1: July 1, 2018 to March 31, 2019 Option Period 2: April 1, 2019 to July 31, 2019

If the Secretariat, at its sole discretion, decides to exercise any of the Option Periods, the Secretariat will submit to the contracted Verifier (approximately three months before the start of the Option Period) the scope of work for the Option Period. The Verifier will

Zambia Verifier RFP - AgResults Zambia Biofortified Maize Pilot of 37

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have 30 days to submit a price proposal for the Option Period for the Secretariat’s review and approval.

Proposal procedures and instructions follow this letter in Appendix 1 and are incorporated herein and are made a part hereof. By submitting a Proposal and the required completed and signed “Anticorruption Compliance Certification” (Appendix 4), you will have consented to the terms of this RFP, including the proposal procedures and instructions.

Please note the deadlines for receipt of proposal, with all required signatures, including a completed and signed Anticorruption Compliance Certification, is due no later than 1700 Hrs. US Eastern Time (US ET) on December 30, 2016. Proposal documents should be submitted in one email to [email protected] . Please indicate “Zambia Verifier RFP” in the subject line of the email. Other important timelines for this RFP are shown in Appendix1.

The Secretariat, in consultation with the Pilot Manager, will review and evaluate proposal submissions using the evaluation criteria specified in Appendix 1 of this RFP. The Secretariat will select the Verifier organization(s) at its sole discretion. The selected Verifier will be notified in writing. Notwithstanding the notification by the AgResults of the contemplated award, no work shall commence prior to the signature of a Verifier Services Agreement between the selected Verifier and the Secretariat. The Secretariat reserves the right to select any number of applying organizations or not to select any organization. The Secretariat reserves the right to award a contract for all or a portion of the work required, issue more than one contract, or to not award a contract.

We look forward to working with you on this opportunity. Should you have any questions or comments please direct them to [email protected] . We appreciate your responsiveness and look forward to a mutually beneficial business relationship.

Sincerely, Sincerely, /s/ /s/Tobey Pannuty-Staten Rodrigo OrtizProcurement Manager Secretariat Team Leader

Appendices:1. Proposal Procedures and Instructions2. AgResults Background 3. Terms of Reference4. Anticorruption Compliance Certification5. Labor Pricing Template6. Sales Reporting Template


mailto:[email protected]


Appendix 1Proposal Procedures and Instructions

This section of the RFP provides the general procedures and instructions the Offeror is expected to follow in completing its response and submitting the Proposal.

1.1 Proposal Format and ContentOfferors shall submit the following clearly identified two components with numbered and ordered subsections in the Proposal that match those subsections detailed in Section 3 “Proposal Requirements” of the Terms of Reference in Appendix 3:

1. Technical Proposal and2. Price Proposal

Clarity and completeness are of the utmost importance in your Proposal, as your organization’s capabilities can only be considered when properly documented within the Proposal.

1.2 RFP Schedule of Events

a) Deadline for Proposals, with all required signatures, including a completed and signed Anticorruption Compliance Certification, is no later than 1700 Hrs. US Eastern Time (US ET) on December 30, 2016. Proposal documents should be submitted in one email to [email protected] . Please indicate “Zambia Verifier RFP” in the subject line of the email.

b) Questions concerning the Pilot or this RFP may be submitted by vendors at any time, but no later than 1700 Hrs. US Eastern Time (US ET) on December 12, 2016 to [email protected]. Please indicate “Zambia Verifier RFP” in the subject line of the email.

c) Answers to timely-received questions will be emailed to you no later than 1700 Hrs. US Eastern Time (US ET), on December 16, 2016.

d) A Phone Conference for interested vendors will be held on December 14, 2016 at 0930 Hrs. US Eastern Time (US ET). Details about how to participate in the phone conference will be publically posted on www.agresults.org to you no later than 1700 Hrs. US Eastern Time (US ET), December 5, 2016.


http://www.agresults.org/



e) The Secretariat expects to award the Zambia Verifier contract on or about January 15, 2017 with an expected contract start date of February 1, 2017.

Please be advised that late Proposal submissions may be considered non-responsive and may be excluded from evaluation and award consideration.

1.3 Anticipated Contract Type and Period of PerformanceThe Secretariat expects to award to the selected Verifier a Fixed Price Contract for the Pilot verification services detailed in this RFP for a Base Period of one year with three Option Periods:


If the Secretariat, at its sole discretion, decides to exercise any of the Option Periods, the Secretariat will submit to the Verifier (approximately three months before the start of the Option Period) the scope of work for the Option Period. The Verifier will have 30 days to submit a price proposal for the Option Period for the Secretariat’s review and approval.

Payment for the Verifier organization’s services under the contract will be made by the AgResults’ Financial Trustee. The Trustee reserves the right to withhold from payments any taxes or similar fees as may be required by applicable law.

1.4 Terms of ReferenceSee Appendix 3.

1.5 Proposal Validity PeriodThe Offeror’s Proposal must remain valid for one hundred and twenty (120) days after submission and the validity period of 120 days must be noted in the Offeror’s Proposal cover letter.

1.6 Responsibility for Compliance with Legal RequirementsThe Offeror’s products, services, and facilities must be in full compliance with all applicable laws, regulation, codes, standards, and ordinances, regardless of whether or not they are referred to by the Secretariat.

1.7 Proposal-Related Incurred CostsThe Offeror will be responsible for all costs incurred in preparing or responding to this RFP. All materials and documents submitted in response to this RFP become the property of the Secretariat and will not be returned. This RFP will in no way obligate the Secretariat to compensate any Offeror for costs associated with the preparation of its Proposal.

1.8 Reservation of Rights


This RFP does not commit the Secretariat to award a contract, to pay any costs incurred in the preparation of a Proposal in response to this request, or to procure or subcontract for services or supplies. The Secretariat reserves the right to cancel this procurement at any time without prior notice. The Secretariat may require the Offeror to participate in discussions, solely at the Secretariat’s discretion, and to submit such monetary, technical or other revisions of their Proposals that may result from such discussions. Offerors do not have the right to protest or seek a claim based on the Secretariat’s exercise of its discretion or judgment in evaluating or awarding a contract arising from or relating to the Proposal. The Offeror expressly waives any and all rights and remedies under any civil action arising from or related to the submittal of a Proposal.

1.9 Rejection of Solicitation ResponseThe Secretariat reserves the right to reject any or all responses received or any part thereof, on any basis or for any reason to accept any response or any part thereof, or to waive any informalities when deemed to be in the Secretariat’s best interest.

1.10 TaxesAny applicable taxes that may be levied in connection with the Services in any jurisdiction will be the responsibility of the selected Verifier and are deemed to be included in the Offeror’s proposed fixed price or fixed unit prices. The Secretariat cannot confer any special tax- or duty-free status to the Verifier and the work is not exempt from any taxes or duties.

1.11 Evaluation CriteriaProposals will be evaluated and ranked by the Secretariat in order in which they represent, in the Secretariat’s sole discretion, the best value for AgResults. Greater weight will be given to the technical services than to price, but price remains an important determinant for selection. Evaluation of the Proposals may include the following elements (not in any particular order):

a) The Offeror’s demonstrated ability to perform the requested services and to scale up the provision of services in the event that additional Implementers are invited to participate in the Pilot.

b) The management team proposed to carry out the scope of work.c) Past performance of similar services in Zambia or in the region. d) The proposed price.e) Proposal’s compliance with the terms set forth in this RFP.

1.12 Compliance with Anticorruption LawsBy submission of the Proposal, the Offeror represents and warrants that, in connection with this solicitation, the Offeror and any person or entity acting on its behalf has complied, and will continue to comply, with the U.S. Foreign Corrupt Practices Act (15 U.S.C. Section 78dd-1, et. seq.) as amended (“FCPA”), and all other applicable anti-corruption laws, rules and regulations. As a general description, the FCPA prohibits corruptly offering or providing money, gifts or


anything of value, to foreign (i.e., non-U.S.) officials for the purpose of obtaining or retaining business, or to secure an improper advantage. Other applicable anti-corruption laws may also prohibit bribery of foreign officials or commercial counterparties. The Offeror, if awarded the Verifier contract, must notify the Secretariat immediately of any suspected or known violation of this warranty.

1.13 Anticorruption Compliance CertificationThe Offeror is required to submit a completed and signed Anticorruption Compliance Certification (see Appendix 4).

1.14 Confidential InformationNotwithstanding any agreements, including any separate nondisclosure agreements, already in place between the parties, the Secretariat assumes no obligation regarding confidentiality of all or any portion of a Proposal or any other material except that the Secretariat may not disclose any portion, which the Offeror clearly designates as containing proprietary information by affixing the following paragraph on the title page:

“This proposal, where explicitly marked, includes data that shall not be disclosed outside of the AgResults Initiative and its respective advisors, consultants and contractors, and shall not be used or disclosed—in whole or in part—for any purpose other than to evaluate this proposal. If, however, a contract is awarded to this Offeror as a result of—or in connection with—the submission of this proposal, the Secretariat shall have the right to duplicate, use, or disclose the data to the extent provided in the resulting contract. This restriction does not limit the Secretariat’s right to use information contained in this data if it is obtained from another source without restriction.”

The Offeror will mark each sheet of data it wishes to restrict with the following: “Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal. “

Notwithstanding the foregoing, the Offeror agrees that its Proposal, including any portion containing confidential information, may be shared by the Secretariat with the AgResults’ Financial Trustee, the AgResults’ Steering Committee and any or all Contributors to the AgResults Trust Fund. The Offeror’s Proposal may be also disclosed to third parties if required by order of a court, administrative agency or governmental body, or by any law, rule or regulation, or by subpoena, or any other administrative or legal process, or by applicable regulatory or professional standards; provided, however, that, to the extent permitted by applicable law, the Secretariat would use reasonable efforts prior to such disclosure to notify the Offeror and allow the Offeror to seek a protective order to restrict or narrow the disclosure in accordance with applicable law.


Appendix 2AgResults Background

1. AgResults Background

The AgResults initiative (“AgResults”) is a USD $118 million multilateral initiative financed jointly by the governments of Australia, Canada, the United Kingdom, and the United States, in collaboration with the Bill & Melinda Gates Foundation (each, a “Contributor”). AgResults seeks to increase private sector investment in food security and agriculture globally. AgResults establishes “pull mechanisms” - economic incentives, or grants, that are provided to implementing organizations after achieving specific outcomes, where private sector investment is absent or hindered due to market uncertainties. In doing so, AgResults goes beyond traditional aid “push mechanisms” that provide funding, technical assistance, or other inputs to create development impacts. Instead, AgResults-financed pull mechanisms define a development problem and pay only for development outcomes that are achieved. AgResults is currently implementing pilot projects in Nigeria, Kenya, Uganda and Zambia, and launching a new pilot globally and one in Vietnam.

Several different entities are involved in implementing the Pilot:

A Steering Committee, comprised of donor organization representatives and the Trustee, makes strategic decisions.

The International Bank for Reconstruction and Development (IBRD) serves as the Financial Trustee of the AgResults initiative, manages donor contributions in a trust fund, and makes payments of the grants to the Implementers, and contracts with the Secretariat and Independent Evaluator.

Deloitte Consulting LLP is the current AgResults Secretariat and is responsible for designing new pilot projects as well as oversight and monitoring of the approved AgResults pilot projects’ implementation. The Secretariat contracts the services of the Verifier. Deloitte Consulting’s appointment as the current AgResults Secretariat expires on June 30, 2018. If the appointment is not extended and a new organization is appointed as the Secretariat, any Verifier Services Agreement that may be in place at that time may be assigned or novated to the new Secretariat or other entity designated by the Steering Committee.

A Pilot Manager referred to as the “Project Manager” in the Fund Framework Agreement manages implementation of specific pilot project in-country. Agribusiness Systems International (ASI) serves as Pilot Manager for the Pilot.

Implementers are organizations that participate in the pilot and receive performance-based grants or prizes if the results are achieved and verified. In case


of the AgResults Zambia Biofortified Maize Pilot, AgResults-selected maize millers and seed companies will be the Implementers.

A Pilot Verifier verifies, determines and certifies whether Implementer participants have achieved the results they report and that are required for the payment of the grants or prizes. The Secretariat contracts the Verifier but the Pilot Manager oversees all verification work.

The Steering Committee has also contracted with Abt Associates to serve as an Independent Evaluator of certain AgResults pilots to measure impacts and to compare AgResults pilots to traditional, “push mechanism” development approaches.

In addition, the Pilot Manager organizes and oversees an Advisory Council of representatives from key stakeholders to provide advisory guidance to the Pilot Manager. The Advisory Council is not a decision-making body, but can provide important advice for Pilot launch and implementation.

The relationship among the key parties is illustrated below.

Figure 1: AgResults Key Parties

2. The Zambia Biofortified Maize Pilot Activities


2.1 Background and ObjectivesThe Pilot is a five-year, results-driven project designed to support the introduction of biofortified provitamin A (PVA) maize meal into commercial markets. Maize biofortification with provitamin A is a low-cost method to combat vitamin A deficiencies, which can cause up to 250,000 child deaths annually in Africa triggered from blindness. In Zambia, research indicates vitamin A deficiency rates as high as 31% in children and 21% in women in some provinces. Vitamin A is critical for maternal and child health and for reducing mortality among these groups.

To combat this challenge, AgResults implements the Pilot, a five year, $7 million pay-for-results initiative. AgResults incentivizes commercial millers and seed companies to increase awareness and consumption of biofortified, pro-vitamin A (PVA) maize meal.

To do this, the Pilot targets commercial millers and seed companies in Zambia to increase both the supply and demand of the PVA maize and PVA maize meal. To increase supply of the PVA maize, AgResults, in accordance with the Pilot terms, offers a monetary grant to incentivize seed companies to produce, promote, and sell PVA maize seeds to farmers. At the same time, the Pilot provides a monetary grant to commercials millers who purchase this PVA maize from farmers and subsequently mill and sell PVA maize meal to consumers.

Anticipated Pilot Results Reduced Vitamin A Deficiency: The pilot expects to produce over 60,000 MT of

PVA maize meal by the fourth year and consumers will receive an additional 124μg of vitamin A per day, 24% of the average requirement.

Improved Long-term Health Outcomes: Adequate vitamin A levels decrease incidence and severity of night-blindness, corneal scarring, blindness, measles, and maternal and child susceptibility to severe infections.

Longer Economic Productivity Per Capita: The additional vitamin A intake is expected to save 476 lost year of "healthy" life (DALYs) among Zambia consumers due to decreased disability, allowing greater contributions to GDP.

Improved Nutritional Awareness of PVA Maize Health Benefits: Publicity from the pilot will generate awareness of the benefits of consuming PVA biofortified maize.

2.2 Pilot Implementation

2.2.1 Pilot ManagementAgribusiness Systems International (ASI), serves as Pilot Manager for the Zambia Biofortified Maize Pilot Project. The ASI Zambia office is located off Lubansheshi Road Olympia Park, Lusaka.

2.2.2 General Description of Implementer CompaniesThe Pilot seeks to promote innovation by offering performance-based grants to qualifying and eligible Implementers (private sector companies) that successfully sell a specified quantity of PVA Maize meal or PVA Maize seed within the Pilot sales period, and within the designated Pilot areas.


Implementer Company Eligibility Criteria - MillersAn Implementing miller must meet the following criteria in order to be accepted into the Pilot:

The Implementer must be a privately operated company that manufactures, sells and/or distributes Maize meal and be appropriately registered and legally licensed to conduct business in Zambia, and the maize meal products must meet any other necessary regulatory requirements.

The Implementer must confirm to have: o A minimum capacity to mill 45 MT of maize per day if Implementer is

located outside of the Lusaka metro area. o A minimum capacity to mill 90 MT of maize per day if Implementer is

located inside of the Lusaka metro area. The Implementer must demonstrate a viable concept for how to sell their PVA

Maize meal products. The Implementer must demonstrate that it possesses the necessary internal

capacities to regularly monitor, track and report total sales figures for the applicable PVA maize meal products.

The PVA maize meal produced by the Implementer must be prepared from biofortified PVA maize.

The Implementer must mill and produce a minimum threshold of maize, depending on the sales year, to be eligible for the per-unit performance grant

The Implementers PVA maize meal products, including breakfast meal, roller meal and grits, must contain a minimum Provitamin A level of 5 ppm.

The Implementer must use specific packaging for the PVA maize meal, and provide legitimate evidence for the Verifier and other expert parties to show that the packaging protects from deterioration.

The Implementer must adhere to the existing guidelines, noted in paragraph 2.2.4 below, and add an orange band to biofortified PVA maize meal products.

The Implementer is required to label the nutritional information in compliance with Zambian law, including the name of the food item, Vitamin A content, lot/batch number, company name, and other claims considered relevant.

Implementer Company Eligibility Criteria – Seed CompaniesAn Implementing seed company must meet the following criteria in order to be accepted into the pilot:

The Recipient must produce, market and sell PVA seed licensed by Harvest Plus and authorized by the Zambia Agriculture Research Institute (ZARI) to farmers in Zambia.

There are five (5) seed companies who have expressed interest in joining the pilot formally. All five seed companies are currently in possession of biofortified Vitamin A maize seeds approved by ZARI and HarvestPlus.

The Vitamin A maize seed sold by the recipient must be an approved biofortified Vitamin A maize hybrid by Harvest Plus and ZARI. The list of approved hybrids is shown below:


o GV664A Vitamin A: 7.2ppm (Zamseed)o GV662A Vitamin A: 4.7 ppm (Kamano)o GV665A Vitamin A: 7.8 ppm (Seedco)o GV671A Vitamin A: 11 ppm (Zamseed)o GV673A Vitamin A: 9+ ppm (Advanta Seed)o GV672A Vitamin A: 9+ ppm(Afri Seed)

Seed Certification Criteria: in compliance with the Seed Control and Certification Institute (SCCI) a Zambian government regulatory agency on the release, production and sale of hybrid seed

Current and Potential Implementer Companies:Millers:Currently, there are four (4) Implementing millers participating in the Pilot and they are described below. In addition, it is anticipated that three (3) millers join the Pilot as Implementers in Year 2 and Year 3.

Star Millingo Grant Agreement: Star Milling has a fully executed Grant Agreement. o Milling capacity and Products: Star Milling has milling capacity of over

100MT/day and produces three (3) varieties of PVA Maize products; namely Breakfast, Roller and Grits. The PVA products are sold in 2.5kg, 5kg, 10kg, 12.5kg and 25kg packages.

o Location: Star Milling is a Zambian registered company domiciled in Lusaka in the Chinika Industrial Area.

o Distributorships: Star Milling distributes its products through their own outlets, Shops, supermarkets and supermarket chains (Pick n Pay and Spar). Their products are distributed into the Copperbelt, Southern, Central and Lusaka provinces of Zambia.

Mushe Millingo Grant Agreement: Mushe Milling has a fully executed Grant Agreement. o Milling capacity and Products: Mushe Milling has milling capacity of over


o Location: Mushe Milling is a Zambian registered company domiciled in Lusaka in the Chinika Industrial Area.

o Distributorships: Mushe Milling distributes its products through their own outlets, Shops, supermarkets and supermarket chains (Pick n Pay and Spar). Their products are distributed into the Copperbelt, Central and Lusaka provinces of Zambia.

Choma Millingo Grant Agreement: Choma Milling has a fully executed Grant Agreement. o Milling capacity and Products: Choma Milling has milling capacity of over



o Location: Choma Milling is a Zambian registered company domiciled in Choma, southern Province.

o Distributorships: Choma Milling distributes its products through their own outlets, Shops, supermarkets and supermarket chains (Spar). Their products are distributed into the Southern, Western, Central and Lusaka provinces of Zambia.

Musanza Millingo Grant Agreement: Musanza Milling has a fully executed Grant Agreement. o Milling capacity and Products: Musanza Milling has milling capacity of over

50MT/day and produces 2 varieties of PVA Maize products; namely Breakfast and Roller. The PVA maize products are packaged in 2.5kg, 5kg, 10kg, 12.5kg and 25kg.

o Location: Musanza Milling is a Zambian registered company domiciled in Livingstone, southern Province.

o Distributorships: Musanza Milling distributes its products through their own outlets, Shops and supermarkets. Their products are distributed into the Southern and Western provinces of Zambia.

2.2.3 Pull Mechanism: Performance-based Grants Participating seed companies and millers will be eligible to receive the following financial grant based on the grant structure outlined below:

Millers:Millers, at the end of each PVA maize meal sales period, will be eligible to receive a per-unit performance based grant based on the amount of PVA maize meal sold. Each sales period is listed below:

i. Period 1 – July 1, 2016 – March 31, 2017ii. Period 2 – April 1, 2017 – March 31, 2018iii. Period 3 – April 1, 2018 – March 31, 2019

In each sales period (Period 1, 2 and 3) millers will be eligible to receive grant payments if they exceed the defined sales thresholds for a given sales period. The grant payment will be calculated as (i) a base threshold payment (a fixed amount payable based on the total sale threshold reached) and (ii) an additional unit payment for each metric ton of the PVA maize meal sold above the applicable sale threshold. In Period 1, to be eligible for the minimum grant threshold, a miller must sell at least 250MT of the PVA maize meal. For example, during Period 1 if a miller sell at least 250MT of the PVA maize meal but less than 500MT they will be eligible to receive a $6,225 base grant amount and $25 grant for every MT of the PVA maize meal sold above 250MT and up to 499MT. If a miller sells at least 500MT of the PVA maize meal but less than 750MT, they will be eligible to receive $12,475 base grant amount and $30 for every MT of the PVA maize meal sold above 500MT and up to 749MT. In Period 2, to be eligible for the minimum grant threshold, a miller will have to sell at least 500MT of the PVA maize meal. In Period 3, the minimum grant sales threshold is 750MT. Note that grant payments will be capped. Millers will not be eligible for grants for the PVA maize meal sales beyond 6,000MT in Period 1; 9,000MT in Period 2; and 12,000MT in Period 3. The total sales


will be calculated after the end of each Period, and grants will be paid out in accordance with the payout structure specified in the tables below.

See the PVA meal sales thresholds with the corresponding grant amounts for each sales period below:

Figure 1: Miller Sales Thresholds and Grant Amounts

Grant Payout Structure – Grant Period 1

From ToBase Threshold

Payment Grant - $/MTThreshold Payment Structure

Annual Thresholds (MT)

0 249 0 0250 499 $6,225 $25 $6,225 + ($25*MT sold between 250-499MT)500 749 $12,475 $30 $12,475 + ($30*MT sold between 500-749MT)750 999 $19,945 $50 $19,945 + ($50*MT sold between 750-999MT)1000 1999 $32,395 $70 $32,395 + ($70*MT sold between 1000-1999MT)2000 2999 $102,325 $80 $102,325 + ($80*MT sold between 2000-1999MT)3000 6000 $182,245 $40 $182,245 + ($40*MT sold between 3000-6000MT)





0 499 $0 $0500 999 $14,970 $30 $14,970 + ($30*MT sold between 500-999MT)1000 1499 $29,970 $35 $29,970 + ($35*MT sold between 1000-1499MT)1500 1999 $47,435 $40 $47,435 + ($40*MT sold between 1500-1999MT)2000 2999 $67,395 $60 $67,395 +($60*MT sold between 2000-2999MT)3000 4499 $127,335 $70 $127,335 + ($70*MT sold between 3000-4499MT)4500 9000 $232,265 $30 $ 232,265 + ($30*MT sold between 4500-9000MT)





0 749 $0 $0750 1499 $22,470 $30 $22,470 + ($30*MT sold between 750-1499MT)1500 2499 $44,970 $35 $44,970 + ($35*MT sold between 1500-2499MT)2500 3249 $79,935 $40 $79,935 + ($40*MT sold between 2500-3249MT)3250 3999 $109,895 $60 $109,895 + ($60*MT sold between 3250-3999MT)4000 5999 $154,835 $70 $154,835 + ($70*MT sold between 4000-5999MT)6000 12000 $294,765 $30 $294,765 + ($30*MT sold between 6000-9000MT)


For example, if a miller in Grant Period 1 reaches 739MT of sales their payment will be calculated as follows:

a. Calculation: Applicable Base Threshold Payment -- $12,475 Additional Unit Payment for MT over applicable sale threshold

-- (240MT*$30)= $7,200 Total Grant Payment: $12,475 + $7,200 = $19,675

Seed Companies:Seed Companies will be eligible for grant payments based on their ability to reach specific PVA maize seed sales and provitamin A levels (minimum amount 5ppm) during each sales period. Each sales period is listed below:

Period 1 – June 1, 2016 – May 31, 2017 Period 2 – June 1, 2017 – May 31, 2018

In each sales period (Period 1 and 2), seed companies will be eligible to receive grant payments if they exceed the defined sales thresholds for a given sales period. The grant payment will be calculated as (i) a base threshold payment (i.e., a fixed amount payable based on the total sale threshold reached) and (ii) an additional unit payment for each metric ton of the PVA Maize Seed sold above the applicable sale threshold. In Period 1, to be eligible for the minimum grant threshold, seed companies must sell at least 50MT of the PVA Maize Seed. For example, during Period 1 if a seed company sells at least 50MT of the PVA Maize Seed but less than 75MT they will be eligible to receive $14,700 base grant amount and $300 grant for every MT of the PVA Maize Seed sold above 50MT and up to 74MT. If they sell at least 75MT of the PVA Maize Seed but less than 100MT, they will be eligible to receive $22,200 base grant amount and $350 for every MT of the PVA Maize Seed sold above 75MT and up to 99MT. This illustrates how seed companies will be rewarded by increased unit grant payments per MT for higher total sales of the PVA Maize Seed. In Period 2, to be eligible for the minimum grant threshold, seed companies will have to sell at least 100MT of the PVA Maize Seed. Note that grant payments will be capped. Seed companies will not be eligible for grants for the PVA Maize Seed sales beyond 350MT in Period 1 and 600MT in Period 2. The total sales will be calculated after the end of the each Period 1 and Period 2, and grants will be paid out in accordance with the payout structure specified in the tables below.

See the seed sales thresholds with the corresponding grant amounts for each sales period below:

Figure 2: Seed Sales Thresholds and Grant Amounts



From To Base Threshold Payment

Unit Grant $/MT

Threshold Payment Structure

Annual Thresholds

(MT)

0 49 $ - $ 0 None

50 74 $ 14,700 $ 300 $14,700 + ($300 *MT sold between 50-74MT)

75 99 $ 22,200 $ 350 $22,200 + ($350*MT sold between 75-99MT)

100 124 $ 30,950 $ 425 $30,950 +($425*MT sold between 100-124MT)

125 199 $ 41,575 $ 500 $41,575+($500*MT sold between 125-199MT)



From To Base Threshold Payment

Unit Grant $/MT

Threshold Payment Structure

Annual Thresholds

(MT)

0 74 $ - $ 0 None

75 99 $ - $ 0 None

100 124 $ 34,650 $ 350 $34,650+($350 *MT sold between 100-124MT)



300 600 $ 130,275 $ 650 $130,275 +($650*MT sold between 300-600MT)

For example, if a seed company in Grant Period 1 reaches 124MT of sales their payment will be calculated as follows:

a. Calculation: Applicable Base Threshold Payment -- $30,950 Additional Unit Payment for MT over applicable sale threshold

-- (24MT*$425)= $10,200


Total Grant Payment: $30,950 + $10,200 = $41,150

2.2.4 PVA Maize Meal Sales and Quality Requirements

MillersFor the purpose of the AgResults Pilot, PVA maize meal standards will be developed in close collaboration with the Zambia Bureau of Standards (ZABS) and the Implementers. At a minimum the Implementer must adhere to the AgResults quality criteria noted below and any relevant regulations that the Zambian government enforces at any point during the Pilot on white maize or biofortified PVA maize.

i. Vitamin A Level Criteria: PVA maize meal products, including breakfast meal, roller meal and grits, must contain a minimum provitamin A level of 5ppm.

ii. Package Criteria: The Implementer must use specific packaging for the PVA maize meal, and provide legitimate evidence for the Verifier and other expert parties to show that the packaging protects from deterioration. The packaging material must enable protection of nutrients (particularly of Vitamin A), be sealed airtight, and keep the product safe.

iii. Branding Criteria: The Implementer must adhere to the existing PM guidelines and add an orange band to biofortified PVA maize meal products. The Implementer is also required to label the nutritional information in compliance with Zambian law, including the name of the food item, Vitamin A content, lot/batch number, company name, and other claims considered relevant. Branding efforts for biofortified PVA maize meal products are the responsibility of the Implementer.

Seed CompaniesSeed company sales will only be counted toward pilot grant thresholds if the sold seed is consistent with the PVA maize seed hybrid(s) listed in section 2.2.2.

i. The Recipient must produce, market and sell PVA seed licensed by Harvest Plus and authorized by the Zambia Agriculture Research Institute (ZARI) for sale to farmers in Zambia.

ii. Vitamin A Level Criteria: PVA maize seed must contain a minimum provitamin A level of 5ppm.

iii. Seed Certification Criteria: must adhere to the existing PM guidelines and in compliance with the Seed Control and Certification Institute (SCCI) a Zambian government regulatory agency on the release, production and sale of hybrid seed.


2.2.5. Sales Tracking and Reporting All Implementers are responsible for tracking and reporting total sales data for all PVA maize seed or meal product. The sales data is reported to the Pilot Manager on a monthly basis, using a sales reporting template provided by the Pilot Manager (See template attached as Appendix 5: Sales Reporting Templates).The data provided by the Implementer via the template is as follows:

a) Total Sales disaggregated by region and by county for both PVA maize meal and seed.

b) Indications of returned, refunded or unsold maize meal or seed originally reported in previous periods.

2.2.6 Sales Data Verification The AgResults Zambia Biofortified Maize Pilot will verify the sales reported by each Implementer. The Pilot verification will be done using reviews of Implementer-reported total sales.

An independent Verifier, contracted by the Secretariat and overseen by the Pilot Manager, will perform regular sales reviews, throughout the Pilot sales period to confirm Implementer-reported total sales on a quarterly basis. As part of the performance-based grants, Implementers agree to allow unfettered access to all pertinent information, including the relevant Implementer’s relevant books and records, in order for the contracted Verifier to perform the review. Failure to provide the requested information may make the Implementer ineligible to continue its participation in the Pilot and/or obtain any further funding from the Pilot. The reviews will include the identification of indicators of potential fraudulent reporting. The firm will triangulate data from different sources, using a variety of approaches. The Verifier may also conduct random spot checks with different stakeholders including, but not limited to, the Implementers’ supply chain and distribution network. The Pilot Manager will create and distribute a review schedule with full details to each Implementer, after discussion with all stakeholders about appropriate timing for the reviews.

It is important to note that the reviews and inspections are not full financial audits, rather the reviews are focused primarily on verification of PVA maize seed and meal sales, provitamin A tests and distribution documentation. The AgResults contracted Verifier will interview and review the documentation of Implementers. To facilitate the review, the Implementers will be required to retain and provide all applicable information requested, including without limitation, the following information:

a) Ordering Documents: Local Purchase Order (LPO), Requisition Form/Email/Letter, or equivalent.

b) Delivery Documents: Delivery Note, Goods Receivable Note (GRN), or equivalent.

c) Billing Documents: Invoice, Pro-forma Invoice, Credit Note/Memo, Debit Note/Memo, Customer Statement, or equivalent.

d) Payment Documents: Receipt, or equivalent.e) Reporting Documents: Monthly sales reports of actual volumes per product,

Monthly Stock Take Report, or equivalent.


The Sales Verification Scope of Work (Section 2.4 below) provides guidance on the verification objective and detailed tasks expected.

2.2.7 Provitamin A Laboratory TestingProvitamin A Laboratory Testing OverviewFor the purpose of the Pilot, the Verifier will engage with Zambia Agriculture Research Institute (ZARI) laboratory for provitamin A analysis. Implementers who participate in the Pilot must adhere to the AgResults developed criteria and any additional relevant regulations/standards that the Zambian government enforces at any point in the duration of the Pilot on white maize or biofortified PVA maize seed and meal. PVA maize seed and meal products, including breakfast meal, roller meal and grits, must contain a minimum provitamin A level of 5 ppm.

To avoid bias and ensure sound statistical sampling, the Verifier will sample PVA maize seed and meal based on a sampling protocol to be developed by the Pilot Manager and Verifier in collaboration with the Secretariat. The Implementer will sign off on the collected samples to confirm that the sampling was done in accordance with the agreed upon sampling methodology, as a true reflection of the batch and that the test results obtained reflects those of the production batch. The aim of this standardized sampling is to obtain PVA maize seed and meal that will be representative of the batches for awarding the grant to the miller. Once a sample is collected, the method of Analysis/quantification of provitamin A in PVA maize meal products shall be the High Performance Liquid Chromatography (HPLC) method developed and validated by ZARI.

The Verifier will be responsible for collecting PVA maize seed and meal samples and submitting them to the ZARI laboratories for provitamin A analysis/testing. ZARI will issue a certificate of analysis for the PVA maize seed or meal sample submitted for analysis. The handling of the samples will be done according to a previously approved sampling and handling protocol agreed by the Pilot Managers, Verifier and Implementer.

Provitamin A Laboratory Testing ObjectivesThe objective of provitamin A laboratory testing/analysis is to ensure that only sales of the product that meeting the required product quality standards in provitamin A composition are eligible for the AgResults grants. Testing provitamin A content in PVA maize seed and meal will help AgResults ensure that the products sold have the minimum provitamin A levels needed to have the desired nutritional impact on the consumer.

Cost of Provitamin A Laboratory Sampling and TestingMillersThe fees and costs for Provitamin A Laboratory sampling and testing will be borne by the Verifier and appropriately costed in the price proposal. It is anticipated that from the milling schedule and sampling methodology proposed:

i. Each Implementer will be milling 2 -3 times (batches/shifts) in a month ii. One batch sample will be collected per quarteriii. ZARI labs will charge approximately $40 to test each PVA maize meal sample

to assess its provitamin A levels. Through a standardised and validated sampling methodology accepted by the Pilot Manager and the Secretariat, the


Verifier, will collect and get tested one (1) sample per quarter from each of the Implementers, or at least 4 samples per annum per Implementer.

Seed CompaniesThe fees and costs for Provitamin A Laboratory sampling and testing will be borne by the Verifier and appropriately costed in the price proposal. It is anticipated that from the seed production schedule and sampling methodology proposed:

i. Each Implementer will be produce once (batches/shifts) in a season from one or several plots

ii. One batch sample will be collected by the verifier in a given sales period a season.

iii. ZARI labs will charge approximately $40 to test each PVA maize seed sample to assess its provitamin A levels. Through a standardised and validated sampling methodology, the Verifier, will collect one (1) sample per sales period from each of the Implementers, or at least 4 samples per annum per Implementer.

Provitamin A Laboratory Testing ResultsThe proposed time frame for Provitamin A Laboratory testing is 4-5 days per sample and a Certificate of Analysis (CoA) showing the results will be availed to the Verifier when tests are completed. The test results will be issued on ZARI’s “Certificate of Analysis” expressed in ppm on as-is-basis. The results will be marked confidential and will not be made public but availed to the Verifier. The test results will only be used to corroborate that the batch/volume would be eligible for the grant. Detailed test results will be shared only with the Secretariat and the Pilot Manager. The Secretariat, in collaboration with the Pilot Manager, will share the results with the Implementers on a quarterly basis.


Appendix 3Terms of Reference

1. Verifier Period of Performance

The Secretariat expects to award to the selected Verifier a Fixed Price Contract for the Pilot verification services detailed in this RFP for a Base Period of one year with three Option Periods:


If the Secretariat, at its sole discretion, decides to exercise any of the Option Periods, the Secretariat will submit to the Verifier (approximately three months before the start of the Option Period) the scope of work for the Option Period. The Verifier will have 30 days to submit a price proposal for the Option Period for the Secretariat’s review and approval.

Payment for the Verifier’s services under the contract will be made by the AgResults’ Financial Trustee. The Trustee reserves the right to withhold from payments any taxes or similar fees as may be required by applicable law.

2. Verifier Personnel and Scope of Work

2.1 Verifier Team – General Role DescriptionThe Verifier Team will be responsible for carrying out the scope of work described in this section, utilizing the guidance given by the Secretariat and Pilot Manager, exercising the duty of care and professional skill expected of a professional firm.

The Verifier will, among other things:

i. Work closely with the Pilot Manager team in all aspects of planning and execution of the work.

ii. Be responsible for preparing any necessary verification materials. iii. Present Implementer companies with requirements for audits in advanceiv. As required, coordinate (through the Pilot Manager) with the Pilot Evaluator, Abt

Associates.v. Attend an orientation meeting with the Pilot Manager team, and be available for

meetings requested by the Pilot Manager team to review any issues arising.vi. Provide the Pilot Manager team with weekly and monthly updates of ongoing

verification work, including any significant issues and challenges experienced, how the challenges were resolved or are proposed to be resolved, any anticipated delays and plans for countering such delays


vii. Monitoring to identify and address any potential or suspected fraud that may be committed by the pilot Implementers

viii. Work closely with the ZARI or any other laboratory to test the PVA maize seed and meal

ix. Any other role, as determined by the Pilot Manager and Secretariat and/or the Steering Committee, which would be useful for the verifier to perform depending on the nature of the pilot and provisions for implementing such pilot and consistent with the agreed scope of work.

2.2 Verifier Team – Key Personnel Roles and ResponsibilitiesThe following are the roles and responsibilities of the key personnel positions for the Verifier Team. The key personnel are essential to the successful performance of the Sales verification. All staff filling these key personnel positions are subject to approval by the Secretariat and may not be changed without the Secretariat’s prior written approval.

Team Leader (TL)/ Lead Verifier: A Certified Public Accountant (CPA), member of a professional accounting body with at least 10 years of experience in audit or work similar to this assignment.

The Team Leader’s primary role will be to ensure that all aspects of this assignment are delivered with quality and per the agreed upon deadlines. More specifically, the Team Leader will:

- Be the principal liaison with the Pilot Manager Team and the Secretariat- Responsible for overall management of the verification team and the audit

engagement- Conduct thorough review of all the agreed upon deliverables- Sign off and deliver high quality reports to the Pilot Manager Team and

the Secretariat- Assist the Pilot Manager Team and the Secretariat in resolving any

disputes that may arise with companies concerning the verification results- Ensure all verification working papers are well organized and preserved

for at least 3 years after the completion of the assignment

Verification Senior (VS): Equivalent to a Senior Auditor, should be a certified public accountant (CPA), a member of a professional accounting body with at least 5 years of experience in audit or work similar to this assignment. It is expected that there would be two (2) Verification Seniors, each being in charge of sales and quality verification for all the Implementer companies.

- The VS will organize, supervise and evaluate the detailed verification activities undertaken by Verification Assistants (see Section 3.1.3.2)

- Ensure completeness of activities- Interact with the management of the Implementer companies- Confirm the verified sales and quality reports - Resolve any disputes over discrepancies in company reported and

audited sales - Ensure all audit papers are well organized and preserved


2.3 Sales Verification ObjectivesThe verification exercise is intended to confirm that the Implementer self-reported sales are accurate to ensure that incentive payments to the Implementers are calculated and paid correctly per the terms of the agreement. The Verifier will mitigate against potential risks to the Pilot, including:

Risk of misstated sales: the risk that reported sales are inflated to reach the incentive targets set under the agreement.

Risk of fictitious sales: the risk that reported sales to reach the incentive targets set under the agreement never occurred.

Risk of subsidized sales: the risk that reported sales were transacted below normal commercial terms in order to reach the incentive targets set under the agreement.

Risk of price dumping: the risk that reported sales were sold below cost in order to reach the incentive targets set under the agreement.

2.4 Verifier Scope of Work Tasks The following are the tasks that the Verifier team will perform:

2.4.1 Verifier Orientation and Start-Up (Duration 2 weeks): Activities to be carried out include:

a) Hold an entrance meeting with the Pilot Manager Team for orientation about the overall AgResults Zambia Biofortified Maize Pilot

b) Hold entrance meeting with ZARI for an orientation on their testing processes and procedures

c) Review the sales verification Objectives, the Scope of Work, approach, timelines and expected outputs

d) Fine tune the communication and feedback protocols for use during the assignment, including how to manage any significant issues or challenges that might arise during the assignment

e) Create and receive approval for proposed reporting templates f) Delivery of quality control mechanisms to be employed by the Verifier in carrying

out the assignmentg) Develop an overall detailed design of the assignment including a comprehensive

work plan. The design shall describe the verification procedures to be employed, to include sampling methodology (Sample size sufficient to produce 95% confidence level and ± 2% margin of error), the documentation to be verified, persons to be interviewed, and the verification instruments to be employed in completion of the assignment. The design and work plan will be reviewed and approved by the Pilot Manager Team and the Secretariat

2.4.2 Implementer Verification Planning, Understanding and Documenting Implementer Systems (Duration 3 weeks) – Activities to be carried out include:

a) Hold entrance or planning meetings with each Implementer to:i. Review and flow chart the operating systems and controls related to

management of the Implementers product (for instance, documenting at a high level the process through which a product accumulates costs which later on form the basis for pricing decisions – the key considerations and controls);


ii. Document system strengths and weaknesses that could imperil the verification objectives in section 2.3;

iii. Document or flow chart the distribution chain of each Implementer; iv. As per the International Standard on Auditing (IAS) 550, obtain identity of any

related parties and document relevant transactions entered into with such parties

v. Document the potential risks noted or inherent in the Implementer overall systems

b) Develop a detailed verification program for each Implementer, to include among other things:

i. Scheduling all verification activities including documentation review and interviews

ii. Designated travel to Implementer offices and other verification locationsc) Demonstrate proof of ZARI engagement and contracting for PVA maize quality

testing by the Verifier

2.4.3 Detailed Implementer Sales Verification Activities (Duration up to 1 year) – This will entail execution of the verification program for each Implementer, to include, at a minimum, the following activities:

a) Obtain signed Implementer self-reported sales reports for the verification period and test for accuracy.

b) General testing of internal control systems for initiation, review, approval and processing of both cash and credit sales - Activities to be carried out include:

i. Obtain and review written company policies or management representations on specific controls

ii. Conduct interviews with operational staff iii. Test whether controls are operating as intended

c) Customer Validity Verification:i. Review the Implementer’s customer sales documents that initiate the sales

action – local purchase orders, Requisition forms, emails, letter etc. to confirm that customers of the Implementer are valid entities and not fictitious

ii. Flag and investigate any sales that are initiated by the Implementer itself, by entities related to the Implementer, or by any other suspicious party

d) Verify and reconcile billing documents: i. Reconcile sales recorded via billing documents such as invoices, debit notes,

cash sales or similar documents with the originating customer sales orderii. Flag and specifically investigate into completed sales forms that are not

supported by customer sales ordersiii. Verify that all customer billing documents are supported with proper delivery

documentatione) Sales book/ledger:

i. Check that sales ledger entries are referenced to valid sales formsii. Flag and specifically investigate any sales ledger entries that are not

supported by valid sales forms f) Reconciliations:

i. Reconcile sales back to the cash/bank records, and report any un-reconciled sales


ii. Reconcile the sales report with VAT returns, and report any un-reconciled sales

iii. Verify that the sales reported by an Implementer are consistent with the company’s income tax return

g) Inquire into overdue Credit Sales and Bad Debts:i. Obtain a debtors listing, aged as per the company’s policyii. Enquire the reason for delinquency and re-trace the delinquent sale to its

initiationiii. Obtain a list of bad debts and inquire into the reason for non-collectability, re-

tracing the sale to its initiationiv. Check for any provision for bad debts and query the reasonability of the

assumptions behind such provision, and the adequacy of the provisionh) Detailed analytical review of sales:

i. Analyze the trend of sales from one reporting period to the next and point out instances of unusual activity

i) Payments made by the Implementer to its customers:i. Obtain a listing of, and investigate reasons for, any payments made by the

Implementer to its customers j) Field visits:

i. Conduct an initial field visit to authenticate each Implementer companyii. Conduct at least one field visit to one of the Implementer Company’s

distributors per quarter, to authenticate the distribution network for the PVA maize seed and meal products

iii. Visit at least two of the companies top ten customers by sales volume to confirm their existence

k) Verification and Analysis of PVA maize qualityi. Travel to the Implementers’ locations to collect 1 sample per quarter and

submit samples to ZARI for PVA testing using the HPLC methodii. Obtain “Certificate of Analysis” from ZARI for the requisite PVA maize

seed/meal samplesiii. Produce analysis of PVA testing results, disaggregated by quarter, to be

included in the verification report.l) Mystery shopper

i. In conjunction with Implementer distribution network authentication, incorporate a parallel procedure for anonymous mock-purchase of the Implementer’s product in at least two shops per quarter, so as to vouch its price and availability

m) Gather any other relevant and sufficient evidence to substantiate in all material aspects the accuracy of the Implementer companies’ sales and quality reporting documentation for purposes of qualifying for the grant

2.4.4 Sales Verification Report and Dispute ResolutionUpon verification of the Implementers’ sales reports for each Period, the Verifier will undertake the following tasks:

a) Prepare a draft report in form of a clear schedule showing the results of the sales verification in the following format:

i. The total amount of sales that were verified,


ii. The total amount of sales determined by the Verifier to have met the AgResults criteria for valid sales

iii. The total amount of ineligible sales and reason(s) for such ineligibilityiv. Specifically highlight that amount of ineligible sales deemed to be fraudulent

activities b) Present and discuss the draft report with the Pilot Manager Teamc) Present and discuss the draft report with the Implementer, provide an opportunity

for the Implementer to explain any finding necessary, including corrections or adjustments as necessary

d) Present the final Verification Report quarterly (including recommendation for the grants payment in accordance with the Pilot terms) to the Pilot Manager team and the Secretariat

e) Be available to answer any verification related queries and help to resolve any verification related disputes arising from the Implementer

i. Disputed Verifier findings will be reviewed by the Secretariat.ii. Per the dispute mechanism in the Miller and Seed Company agreements, the

Secretariat may request the Verifier to reexamine their results. After reexamination the Verifier’s decision will be final and binding.

f) Provide the Pilot Manager team with weekly and monthly updates of:i. Summary of ongoing verification work;ii. Any significant issues and challenges experienced with the implementing

companies, how the challenges were resolved or are proposed to be resolved;

iii. Any anticipated delays in completion of the verification, and plans for countering such delays

iv. Sampling results based on ZARI High Performance Liquid Chromatography (HPLC) provitamin A testing

2.4.5 Data Quality ControlThe Verifier team will be responsible for ensuring data quality control of the Implementer audits. In particular:

i. The sales verification team must demonstrate independence, integrity, ethics and objectivity

ii. All verification working papers prepared by members of the sales verification team should be reviewed and approved by a senior member of the team, other than the preparer

iii. A checklist should be prepared by the Team Leader in advance to guide field staff in identifying significant matters (including fraudulent Implementer practices) and escalating them to the Team Leader

iv. The sales verification team must create and retain complete and well referenced verification documentations.


2.5 Deliverables and ReportingThe table below lists the deliverables and minimum reporting requirements. This list is not intended to be exhaustive or restrictive but provide the verifier with reporting expectations. Before submitting the reports and deliverables, the verifier will submit final templates for approval.

Activity Deliverable/ Report required Due date

Verifier Orientation and Start-Up (2.4.1)

A report to the Secretariat setting out the overall design of the assignment, including but not limited to:

documents to be reviewed; persons to be interviewed; sampling methodology; communication protocols; reporting templates; quality control mechanisms; work plan.

2 weeks after date of fully executed contract

Implementer Verification Planning, Understanding and Documenting Implementer Systems (2.4.2)

A detailed written report to the Secretariat for each Implementer that addresses the minimum indicative verification tasks listed in 2.4.2 (a):

# of meetings held with the Implementer; a documented flow chart of the operating

systems and controls related to management of the Implementer;

Implementer systemic strengths and weaknesses that could imperil the objectives in section 2.3;

a documented flow chart the distribution chain;

document the potential risks noted or inherent in the Implementer overall systems;

submit proof of contract with ZARI for provitamin A testing

A written detailed verification program for each Implementer as per task 2.4.2(b)

5 weeks after date of fully executed contract


Activity Deliverable/ Report required Due dateWeekly and monthly updates 2.4.4(f)

Provide weekly and monthly updates to the Pilot Manager

Summary of ongoing verification work, Status update on PVA maize analysis; Any significant issues and challenges

experienced with the implementing companies, how the challenges were resolved or are proposed to be resolved;

Any anticipated delays in completion of the verification, and plans for countering such delays

Weekly/monthly

Detailed Verification Reports (2.4.3 and 2.4.4)

For each Implementer, a detailed verification report in two sections:

Verification Activities Findings: For each Implementer verified, a detailed written report for each round of verification (quarterly) that addresses the minimum indicative verification activities listed under 4.4.3(a) to 4.4.3(m), describing the exact work performed for each activity and the finding thereof.

Sales Verification Report: For each Implementer verified, a written report for each round of verification (quarterly) in form of a clear schedule showing the results of the sales verification in the following format:

i. The total amount of sales that were verified;

ii. The total amount of sales determined by the Verifier to have met the AgResults criteria for valid sales;

iii. The total amount of ineligible sales and reason(s) for such ineligibility;

iv. The amount of ineligible sales determined by the Verifier be fraudulent activities highlighted specifically;

v. PVA quality analysis, disaggregated by month, for PVA maize tested

vi. Recommendation for the grants payment in accordance with the Pilot terms

30 days after each verification period (quarterly)

Verification Report In-person or virtual presentation to the Pilot 15 days after


Activity Deliverable/ Report required Due datePresentation (2.4.4 (d))

Manager Team and Secretariat (also shared via internet presentation if Secretariat is not in Zambia at time of meeting), to provide overview of the verification process and summary of each verification report (an omnibus presentation covering all Implementers)

completion of verification report

Resolving verification queries and disputes (2.4.4 (e))

Responses to any verification related queries and help to resolve any verification related disputes arising from the Implementer, including disputes related to discrepancies between Implementer self-reported sales and verified sales

As needed

2.6 Illustrative Timeline The following is an illustrative timeline of activities for the Base Period. This is presented only to illustrate the type of timeline desired, please modify according to your requirements. Please note, these timelines will be superseded by the work plans submitted by and agreed with the Verifier.

Illustrative Timeline - Base Period Activity

2017F M A M J J A S O N D J

Verifier Orientation and Start-Up Pilot Orientation by PM Team Review Scope of Work, agree on protocols, sampling, reporting templates, quality control measures

Develop overall design for the assignment, including work plan

Implementer Verification Planning, Understanding & Documenting Implementer Systems Entrance meeting with Implementers and ZARI Review and document Implementer systems and related parties

Report on Implementer systems, including weaknesses and risks

Develop verification program for the Implementer Detailed Implementer Sales Verification Activities (2.4.3) Review Implementer self-reported Sales Report Test pertinent sales controls Substantive testing: review documents, records, perform reconciliations and enquiries

PVA maize sampling and analysis

Reporting, Sales Queries and Sales Dispute Resolution


Weekly and monthly updates as per 2.4.4(f) Prepare and present a Verification Report comprising of (A) Verification Activities Findings, (B) Sales and Quality verification Report: a detailed written report as per 2.4.3 and 2.4.4

Conduct in-person report outs of verification reports (omnibus presentation) as per 2.4.4(d)

Assist to resolve Implementer verification queries and sales disputes as per 2.4.4(e)

3. Proposal Requirements

3.1 Technical ProposalOfferors are required to address the components below, to limit their response to fifteen (15) pages, and to provide additional materials, such as CVs, in separate annexes. The separate annexes will not count towards the 15-page limit.

3.1.1 Verification MethodologyOfferors should spell out the approach to be employed in carrying out the work, including but not limited to the following:

a) Sampling proceduresb) Documents to be reviewedc) Interview procedures and any questionnaires to used) Tests to be conductede) How the firm would scale up for additional Implementers or to account for

large/unforeseen number of sales transactions

3.1.2 Quality Control and MonitoringThe Offeror should describe the quality control and monitoring procedures to incorporate in the verification work, including but not limited to:

a) Retaining suitably qualified and experienced staff to the assignment;b) Clear procedures for review and approval of tasks carried out and

deliverables/reports presented to the Secretariat. At a minimum, evidence of review/approval by the Team Lead is required.

3.1.3 Personnel and ManagementThe Offeror should provide the information indicated below about the proposed staffing and management structure required for executing the Verifier activities. All key personnel should be indicated in the Proposal and their commitment confirmed (future substitution of such personnel will be subject to the Secretariat’s written approval). The Secretariat or its designee reserves the right to interview the Lead Verifier and other individuals as part of the selection process.

3.1.3.1 Key Personnel – Position Requirementsa) The Offeror shall provide a list of proposed key staff by specialty and include

CVs recently signed by the proposed professional staff and authorized


representatives submitting the proposal. The key information should include number of years working for the firm/entity and degree of responsibility held in various assignments. See also Section 2.2. The Offeror should list the tasks that will be assigned to each proposed key staff team member

b) The minimum list of key positions and their qualifications are spelt out in Section 4.2. In budgeting for Key Personnel, assume there will be 10 Implementer companies for pilot verification in the base period, and 3 Implementer companies for the subsequent periods.

The Offeror will include an explanation of the structure of the performing team (the key personnel and Support staff – see 3.1.3.2). If the Offeror proposes a different configuration, it should be included in the personnel template and justified.

3.1.3.2 Support StaffKey Personnel are responsible for all Pilot Manager Tasks described in the Scope of Work. The Offeror must provide a summary of other staff, if any, that will have a role in the work and/or in supporting any of the Key Personnel. Please state the role for which the individual(s) is being proposed, how his or her qualifications correspond to that role, and provide a summary description of the individual and attach detailed CVs.

It is expected that for the purposes of verification field work, the Offeror would appoint 4 Verification Assistants (equivalent of Audit Assistants), who would be persons with at least bachelor’s degree and 1-3 years of experience in audit or work similar to this assignment. It is expected that one Verification Assistant would undertake field work for two to three companies.

3.1.4 Corporate Capability and Past Experiencec) The Offeror shall provide brief description of the firm’s organization, a

statement of corporate capabilities and at least five (5) examples of current or past performance activities similar or relevant in nature to the efforts identified in the Scope of Work in this RFP either in Zambia or the surrounding region.

d) Please provide a description of the services, name(s), e-mail addresses, and phone numbers of the client(s)/customer(s) to whom the services were provided, dates and periods during which the indicated services were provided, and the extent and nature of services provided. (The Offeror consents to the Secretariat contacting and verifying these references at its discretion.)

3.1.5 Corporate InformationThe following information shall be provided as annexes:

a) The Offeror shall provide the location of the organization’s current functioning office locations and existing presence throughout Zambia’s regions.

b) The Offeror shall provide the following documents; A copy of the company’s legal Registration Certificate, A copy of the company’s PIN Certificate A copy of a Valid Tax Compliance Certificate.


A copy of current practicing certificate from the relevant professional body

3.1.6 Illustrative Year 1 Work PlanUsing the Draft Timeline in Section 2.6 as well as the details provided throughout the RFP, propose an illustrative Work Plan for Year 1, with activities defined on a quarterly basis, to be carried out for the first year described in the Terms of Reference in Section 2.4. Include an estimated timing of major activities, deliverables, and interaction with other entities. Upon award, a definitive Year 1 Work Plan will be required within 30 days for discussion and approval by the Secretariat.

3.2 Price Proposal The Offeror shall submit a Fixed Price Proposal that includes all fees and expenses, including any taxes, for the following periods:


The Price Proposal should cover all the activities detailed in the Scope of Work in Section 2.Assume they will be ten (10) Implementers in base year and three (3) Implementers in subsequent years. The price proposal should - at a minimum - include a breakdown of anticipated costs as follows:

a) Labor costs with fees based on fixed daily rates for each labor category, utilizing the Zambia Verifier Labor Pricing Template in Appendix 5.

b) Travel costs for approximately 4 trips annually to conduct the assignment referenced on section 2 of the Terms and Reference. This includes trips to Implementer facilities and distribution chains. These figures assume that initially, ten (10) well-established seed companies and maize milling companies will participate in the Pilot as Implementers. Should this assumption be incorrect, the Pilot Manager and Secretariat will discuss and make appropriate revisions to the Scope of Work;

c) Any other additional expenses related to the assignment fully broken down

Notes: Proposed payments will made be quarterly and tied to deliverables

proposed by the Verifier in the submitted illustrative Work Plan. All expenses should be listed separately, with sufficient detail to allow for

evaluation as to the reasonableness of the items proposed. All prices shall be quoted in US dollars. Offeror is responsible for any applicable taxes and similar fees (those are

deemed included in the proposed fixed price). Secretariat cannot confer any special tax- or duty-free status.


4. RFP Schedule of Events

a) Deadline for Proposals, with all required signatures, including a completed and signed Anticorruption Compliance Certification, is no later than 1700 Hrs. US Eastern Time (US ET) on December 30, 2016. Proposal documents should be submitted in one email to [email protected] . Please indicate “Zambia Pilot verification RFP” in the subject line of the email.

b) Questions concerning the Pilot or this RFP may be submitted by vendors at any time, but no later than 1700 Hrs. US Eastern Time (US ET) on December 12, 2016 to [email protected]. Please indicate “Zambia Pilot verification RFP” in the subject line of the email.

c) Answers to timely-received questions will be publically posted on http://agresults.org/en/288/GetInvolved no later than 1700 Hrs. US Eastern Time (US ET), December 16, 2016.

d) A Phone Conference for interested vendors will be held on December 14, 2016 at 0930 Hrs. US Eastern Time (US ET), i.e. 4:30 PM Zambian time. Details about how to participate in the phone conference will be publically posted on http://agresults.org/en/288/GetInvolved no later than 1700 Hrs. US Eastern Time (US ET), December 5, 2016.

e) The Secretariat expects to award the Zambia Pilot verification contract on or about January 15, 2017 with an expected contract start date of February 1, 2017.


http://agresults.org/en/288/GetInvolved

http://agresults.org/en/288/GetInvolved



Appendix 4Anticorruption Compliance Certification

AgResults requires full compliance by any recipient of AgResults funds with the U. S. Foreign Corrupt Practices Act (15 U.S.C. Section 78dd-1, et. seq.) as amended (“FCPA”), and all other applicable anti-corruption laws, rules and regulations.

The anti-bribery provisions of the FCPA make it illegal to offer, promise, authorize, or provide anything of value, either directly or indirectly (e.g., through third parties), to a Foreign Official (as defined below) for the corrupt purpose of (1) influencing an official act or decision; (2) inducing the Foreign Official to do or omit to do anything in violation of his lawful duty; or (3) securing an improper advantage; in each case in order to assist in obtaining, retaining, or directing business to anyone.

Under the FCPA, a Foreign Official includes not only a person who performs traditional governmental or administrative functions, but also any member of a royal family or an employee of an entity in which a governmental body has an ownership interest (even a minority interest). Such employee could still qualify as a Foreign Official even if he or she performs business-related functions as an employee of such entity engaged in commercial, rather than governmental, activities.

To facilitate the Offeror’s understanding and compliance with obligations set forth in this clause, ‘Foreign Official’ is hereby defined for the purposes of this clause to include:

• Any officer or employee of a non-U.S. government (including any non-U.S. military personnel) or any of its departments or agencies or incorporated entities (including state-owned enterprises);

• Any director, officer, or employee of any legal entity or joint venture that is controlled or significantly owned by a non-U.S. government (including any non-U.S. military personnel) or any of its departments or agencies or incorporated entities (including state-owned enterprises);

• Any officer or employee of any public international organization (e.g., the United Nations or World Bank);

• Any person that represents or acts on behalf of, or in an official capacity for, any non-U.S. government or any of its departments or agencies or incorporated entities (including state-owned enterprises), even if honorary;

• Any non-U.S. political party or party official or candidate for non-U.S. political office; • Any member of a royal family; and• Any member of a non-U.S. legislative body.

The Offeror understands that prohibited payments or offerings under the FCPA need not take the form of cash or cash equivalents. For the purposes of this clause, and in line with the FCPA, the reference to ‘anything of value’ is construed broadly and covers any tangible benefit of any kind, including, without limitation, cash or cash equivalents, gifts (including, but not limited to, gifts or courtesies of local custom, wedding and personal gifts, jewelry), political contributions, donations to charities at the behest of a Foreign


Official or his/her family, entertainment (including, but not limited to, meals and tickets to events), travel and travel-related expenses, hospitalities (including, but not limited to, accommodation), ownership rights in joint ventures or other entities, inflated or excessive contract prices, loans and employment (whether long-term or temporary). Even if any payments or gifts are a customary part of the culture of a particular country, they may be prohibited under the FCPA. In addition, providing or offering gifts, payments or other benefits to another person for an improper or corrupt purpose may violate not only the FCPA but also other similar anti-bribery laws and regulations.

Moreover, certain laws and regulations, that may be also applicable in connection to the Offeror’s activities, prohibit bribes or kickbacks in the private sector and regulate, among other things, whether gifts, entertainment or employment may be provided to U.S. government officials. The Offeror shall comply with all such applicable laws and regulations.

Therefore, in connection with the participation in the AgResults Zambia Biofortified Maize Pilot, the Offeror shall not cause the Secretariat and all other entities associated with the AgResults Initiative to be in violation of the FCPA or any other applicable anti-corruption laws or regulations. The Offeror must refrain from either directly or through others, making or offering to make bribes, kickbacks or other corrupt payments or provide anything value to a Foreign Official or anyone else for purposes of influencing them to benefit the Secretariat or any other entities associated with AgResults Initiatives, the Offeror, or any other party.

The Offeror shall notify the Secretariat immediately if it learns of any violations of the FCPA or any other anti-corruption laws in connection with the Offeror’s involvement in the AgResults Zambia Biofortified Maize Pilot. Notifications can be made to Secretariat through email: [email protected] or by contacting Parasto Hamed, Secretariat Field Coordinator, at +1.571.882.8646. Notifications can be also made anonymously through the website www.integrityhelp.com, or by calling +1 866 850 1485 (within the U.S.) or +1 503 748 0570 (outside the U.S.).


http://www.integrityhelp.com/


Compliance CertificationBy my signature, I certify as the Offeror, or as an authorized representative of the Offeror, that the Offeror has complied with and will comply with the U. S. Foreign Corrupt Practices Act (15 U.S.C. Section 78dd-1, et. seq.) as amended (“FCPA”), and all other applicable anti-corruption laws, rules and regulations.

Name of the Offeror

Organization of the Offeror

Signature

Printed Name of Signatory (if signatory is an authorized representative of the Offeror)

Date


Appendix 5Labor Pricing Template


Appendix 6Sales Reporting Template and Cover Letter
