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Request for Proposals: Business Advisory Service Providers (BASPs) May 2021 - Jobvacan

Request for Proposals: Business Advisory Service Providers (BASPs)

April 1, 2021

Request for Proposal (RFP)

RFP #: 217788-2021-03 BAS Providers

RFP Issue Date: April 1, 2021

Feed the Future Ghana Mobilizing Finance in Agriculture (MFA)

Closing Date and Time

May 7, 2021, and 5:30 PM

Contact Person

Philip Djabatey

Details for Submission

[email protected]

As implementer for the Feed the Future Ghana Mobilizing Finance in Agriculture (MFA) activity, Palladium invites you to submit a proposal for the terms of reference below. Your proposal must be valid for the Validity Period.

Please submit your proposal in accordance with the Details for Submission above by the Closing Date and Time. This RFP in no way obligates Palladium to award a contract nor does it commit Palladium to pay any cost incurred in the preparation and submission of a proposal. Palladium bears no responsibility for data errors resulting from transmission or conversion processes.

I look forward to your response. If you have any queries, please do not hesitate to contact Philip Djabatey at+ 233 27 4350305 or by e-mail [email protected]

Yours sincerely,

Dr. Victor Antwi

Chief of Party

Company Information

Palladium is a global leader in the design, development and delivery of Positive Impact— the intentional creation of enduring social and economic value. We work with corporations, governments, foundations, investors, communities and civil society to formulate strategies and implement solutions that generate lasting social, environmental and financial benefits.

Project

The Feed the Future Ghana Mobilizing Finance in Agriculture (MFA) Activity is a $19 million, 4-year USAID Activity that aims to increase commercial financing availability for agriculture to facilitate capital investment and promote trade. MFA will leverage financial incentives to spur agricultural finance market behavior change and system reform, leading to more inclusive economic growth through agribusiness development.

Background

In order to unlock agricultural finance in Ghana, the Feed the Future Ghana Mobilizing Finance in Agriculture (MFA) Activity will facilitate transactions to drive capital investment and trade in selected value chains in Ghana: maize, soy, groundnuts, cowpea, shea, cashew, mango and other high value export crops. It will leverage performance-based incentives to enhance the capacity of Business Advisory Service Providers (BASPs) to close deals, as well as catalyse financial institutions’ (FIs) engagement with the target sector. Over the four-year period of performance (2020-2024), MFA will unlock $261 million in investment, in addition to spurring agricultural finance market behaviour change and system reform to drive sustainable agricultural lending and inclusive growth.

Purpose

MFA will engage BASPs to assist enterprises operating in Ghana to access business advisory services in order to obtain finance and investment, as a part of our effort to mobilize $261M in financing by October 2024.

This tender seeks to subcontract Business Advisory Service Providers (BASPs) under a Pay-for-Performance incentive program that encourages deeper engagement of M-SMiLEs in target the sectors within Ghana. To become eligible under this Tender, BASPs must demonstrate a track record of successfully assisting enterprises to secure financing (debt/equity/grants or other forms of financing) in the targeted sectors, as highlighted below. The objective is to create a vibrant network of BASPs competing to close capital and financing opportunities. Therefore, MFA intends to engage multiple BASPs through this procurement.

Sector and Geographic scope of the assignment

BASPs will be eligible to receive success fee commissions for facilitating finance and investment to M-SMILEs in the maize, soy, groundnut, cowpea, shea, cashew, mango and other high value export crops. Enterprises supported by BASPs to access finance and investment must be conducting business in the above listed value chains (VC). Examples of value chain actors eligible for support include input dealers, producers, processors, aggregators, storage service providers, traders, retailers, exporters, agriculture logistics firms, and technology providers.

There are three categories of transactions under this subcontract:

  1. Maize, soy, cowpea and groundnut value chain deals. BASPs may provide investment and credit facilitation services for a success fee commission for each transaction that supports USAID’s Feed the Future Initiative. Approved enterprises must be located within or must work with suppliers/producers located within the Feed the Future Ghana Zone of Influence’s (ZOI) 17[1] Districts across four regions (Northern, North East, Upper East, Upper West). The BASP’s client enterprise must be located in, selling to, or buying from any of these districts in the country to qualify for success fees.

  2. Trade acceleration value chain deals (High value export crops, including but not limited to Shea, Cashew and Mango). Diversification into higher-value crops of agricultural transformation that offers the potential to pull farm households by connecting them to more lucrative domestic and international markets and diversifying their incomes. Approved enterprises for the value chains within this section must be operational within Ghana.

Other high value crops not explicitly mentioned in this paragraph must be approved on a case-by-case basis by the MFA team before a BASP will qualify for success fee for facilitating finance and/or investment for an enterprise within those value chains.

  1. Cocoa deals. BASPs may provide investment facilitation services for the specific activities in the cocoa value chain related to cocoa tree planting and processing. Transactions supporting harvesting, collecting, or trading will not be eligible. For all cocoa deals, the BASP must seek approval from MFA before providing any services and MFA reserves the right to disqualify any transaction from being eligible in this value chain.

Type of Contract and Ceilings

The contracts that will result from this RFP will be Firm Fixed Price subcontracts. Selected BASPs will be subcontracted for an initial fee ceiling amount, up to a maximum of $80,000 USD, as determined at the time of contracting for the first year. MFA will reward high-performing BASPs with an increase to their subcontract ceilings. MFA will review the performance of the BASP every six months and evaluate whether an adjustment (increase or decrease) to the awarded ceiling is warranted. Any additional subcontract renewal ceilings will be based on historical performance via modification to the existing agreement.

Anticipated Contract Term

Subcontracts will be offered to approved applicants for a period of 12 months with the option for renewal based on performance and the availability of funding, at the sole discretion of the MFA team. Renewal, extensions, or modifications may be granted up to an additional 12 months, but not beyond October 26, 2024.

Timeline

Submissions for this program are due not later than May 7, 2021. Two weeks after the advertisement of the RFP, Palladium will hold an informational session for interested bidders. In this session, there will be a presentation with an overview of the program, instructions on how to apply and the evaluation methodology, and a chance for bidders to ask questions. Answers to questions will be circulated to all attendees as well as all contacts who have expressed interest in the RFP up until that date.

BASPs who will request and respond to the Full RFP by May 7, 2021, will have their proposal evaluated and successful candidates signed onto the MFA BAS Network by May 21, 2021. BASPs that do not meet the May 7, 2021 deadline may still be able to join the program through a separate rolling application.

The anticipated start date would be immediately after contract signature. **

How to apply

Instructions to the Offerors

**

Business Advisory Service Providers (BASPs) who wish to respond to this RFP must meet the following minimum qualification criteria and provide corresponding supporting documents:](https://bit.ly/3fvOoTX)

  1. Must be a registered legal entity in Ghana and provide copy of certificate or articles and memorandum of association;

  2. Must have been in existence for at least three years;

  3. Local Company Data sheet (Filled, dated and signed) (Attached to this RFP);

  4. Must have facilitated at least three financing deals of at least USD 100,000 (GHS equivalent) in the past three years;

  5. Key personnel must have a minimum of three years of relevant experience; ](https://bit.ly/3fvOoTX)

  6. Must have a DUNS number (instructions for obtaining a DUNS number may be found here https://www.dnb.com/duns-number/get-a-duns.html );

  7. Must not have any active exclusions in www.sam.gov, UN, or other international compliance databases;

  8. Signed certifications: Terrorism, Ant-Kick Back, Debarment, Foreign Corrupt Practices Act; and

  9. Past Performance of Trade References

Must be owned by nationals of a country not considered a prohibited source or barred from doing business with the United States

The Chief of Party has the authority to waive a requirement if a response to the RFP presents a valid justification.

The anticipated start date would be immediately after contract signature.

Contents of Proposal

A response to this RFP, at minimum, is required to include the following information to demonstrate that the BAS Provider has the technical expertise, management capability, and capacity to perform the work.

A. Description of Services and Approach:

BAS Providers responding to this RFP shall provide a brief description of their technical approach to the engagement, including:

• A description of the services to be provided

• Approach to investment and credit facilitation services to agribusiness M-SMILEs targeted by MFA in the following sectors maize, soy, cowpea, groundnut, shea, cashew and mango:.

• Approach to working with companies located in (or supporting production in) the Northern, Upper East, Upper West, North East Regions of Ghana

B. Technical Capabilities and Qualifications:

Response to this RFP shall provide a summary of BASP’s technical capabilities in the provision of technical assistance to facilitate finance and investment for agribusiness M-SMILEs, as well as their experience in analysing the environmental risks of specific finance and investment deal facilitation. The BASP will provide examples of previous successful projects in the past three years and qualifications to illustrate their experience in these areas and highlight their record of accomplishment. Responses should focus on providing information related to the services to be performed under this engagement, particularly if the BASP has experience working in the North of Ghana and/or agricultural financing. Provide contact information for three references.

C. Key Personnel:

The BASP responding to this RFP shall assemble a project team of competent investment and financial advisory expertise (Key Personnel) and support staff with a submission of detailed resumes of key personnel, highlighting relevant experience, years of experience and qualifications including a Project Manager/Lead Consultant. It is not necessary to submit resumes of administrative support staff.

D. Local Company Data Sheet:

The BASP must submit, in addition to the information above, a fully completed and signed Non-U.S. Company Data Sheet (which is provided as part of the RFP).

Evaluation and Award Process

Awards will be made to the best value offers based on the evaluation criteria listed below:

  1. Past performance (20 points)

• Demonstrable experience in similar assignments with supporting documentation stated in the response to RFP;

• Strong emphasis should be placed on past experience linking agribusinesses to finance of at least USD100,000 (GHS equivalent) in the past three years. Include a list of Financial Institutions advancing credit or equity, the amount, and details of the corresponding agribusiness (recipient) to whom the investment was linked.

  1. Key personnel (20 points)

• Proposed team lead CVs demonstrating suitability and experience with a minimum of three years’ experience supporting enterprises accessing capital.

• CVs of three key personnel demonstrating ability to support and carry out the SOW stated in the Tender.

  1. Technical Approach (50 points)

• Response to the Tender must demonstrate clear understanding of the Scope of Work to be undertaken to support MFA and the client/enterprises and sectors. Describe methodology and process for carrying out the SOW.

• Provide an approach to meeting and exceeding the minimum capital to be mobilized (closed transactions) during the one year contract period. Applicants can provide estimates of the number of M-SMILEs they plan to engage, the kind of financing and the average finance to be facilitated to these M-SMILEs. Estimates should be based on the BASP’s existing pipeline, track record, and understanding of market opportunities.

  1. Youth or women inclusion (10 points)

• Demonstrated commitment to facilitating opportunities for women and youth and an understanding of specific issues that affect these populations. Also, supporting the segments of the value chains dominated by women and youth.

Palladium reserves the right to award under this solicitation without further negotiations. The offerors are encouraged to offer their best terms and prices with the original submission.

Submission

This Request for Proposal is open until May 7, 2021.

Date/Deadlines Actions

April 16, 2021 BASP Bidders’ Conference (Interested BASP who whish to respond to this RFP should express their interest via email to [email protected] by April 9, 2021 to be invited for participate in the Bidder’s Conference on May 16, 2021)

April 23, 2021 Questions and Answers from Bidders’ Conference Circulated

May 7, 2021 Final date for Proposal Submission

May 21, 2021 Proposed Award Date for the first round of BASPs

The completed copy of the response to this RFP must be delivered strictly via email to the following address:

Philip Djabatey

Procurements and Grants Director

M + 233 27 435 0305

Email: [email protected]

The Assissi Hill, 24 La Tebu Crescent,

Ghana Post GPS: GL-039-4537

Cantonments, Accra, Ghana

Questions may be directed to the above-mentioned person.

Scope of Work and Standards

The BAS provider shall provide services to client firms and FIs that support the financing and investment approval and disbursement process within MFA’s target sectors. Potential services for client firms may include, but are not limited to the following:

  1. Arrange credit and/or investments for approved enterprises within the sectors, value chains, and geographic region, as identified by MFA. Financial facilitation support may include but not limited to:

a. Identification of financial intermediaries interested in financing targeted enterprises;

b. Development of business plans or application for debt/equity in support of client firms;

c. Support with and submission of enterprise proposals to financial institutions, lenders, or investors;

d. Arranging meetings with enterprise officials and the Credit Officers/Credit Committees of FIs or investors and negotiating financing terms (debt/equity);

e. Following through to obtain financing Term Sheet and support the due diligence and closing the funding process to the client enterprise;

f. Follow up with the enterprise’s utilization of the received financing and monitoring for debt repayments. BASPs’ performance will also be measured against the successful repayment of loans facilitated.

  1. Link enterprises to private equity investors: support due diligence process, valuation services and facilitate negotiation of equity investments. The BAS provider may explore debentures, convertible notes or other acquisition stake options, if accepted by the client enterprise.

  2. Debt Restructuring, which leads to additional financing:

a. Conducting a situational analysis by engaging the enterprise in a dialogue about debt restructuring;

b. Obtaining a third-party authorization to re-negotiate the loan terms on behalf of the recipient and conclude a loan restructure agreement with the client firm;

c. Developing and presenting new loan structures, presenting the business case of the client firm and securing (closing) a financing solution with a lender or investor;

d. Negotiating new terms on debt, equity and other instruments in support of the client firm.

  1. Facilitate access to other financial products (e.g., leasing, suppliers’ credit, inventory credit and warehouse receipt financing).

  2. Assess the internal management systems of client firm to identify and provide management/business capacity building, by the BAS provider (or a third party).

The BAS provider shall be required to submit a client engagement letter, signed by the BAS provider and the M-SMILE firm it wishes to support with services for approval to MFA prior to engaging in any service delivery as described above. This client engagement letter shall include the name and description of the M-SMILEs agribusiness firm, the sector to be supported (maize, soy, cowpea, groundnut, shea, cashew, mango and other high-value export crops , the proposed technical assistance to be provided, the proposed timeline of assistance, and the estimated size and type of financing, and the details of the arrangement for M-SMILE payment to BAS firm (amounts, form of payment and timeline for payment). Requests will be evaluated and returned to bidders with a decision for support within 10 working days of receipt.

MFA strongly encourages the facilitation of financing for women-led and/or youth-led enterprises, or to enterprises able to increase employment to women and/or youth.

Deliverables

All BAS providers that are selected under this Tender will have the same deliverables schedule. All engaged BASPs will have a minimum financing target of $2M in finance and or investment to be facilitated to enterprises within the above mention VC during the engagement period. If BASPs meet this financing target in a calendar year, they will receive a bonus payment of $1,000.

Payments are calculated based on the U.S. dollar value of the deal closed, with the rate of exchange based on Palladium’s agreed rate setting system with the FIs in Ghana.

The service provider shall be expected to provide three key deliverables for each client firm assisted:

  1. Pre- Approval (Engagement Letter, Work plan, Selection Criteria and Completed Environmental Review Form): The details of each of the documents required for Pre-Approval is below.

o Client engagement letter signed by the BAS provider and the client firm it wishes to support with services. MFA will provide the template (which will include information on the enterprise being supported, the type of assistance to be provided by the BASP, the terms of the enterprise payment to the BASP (if any) including amount, timeline for payment etc).

o Work plan – A GANTT chart illustrating the proposed timeline of assistance to be provided to the client enterprise.

o Selection criteria – MFA will provide a scoring matrix to be used by the BASP to demonstrate alignment with MFAs criteria for support

o Environmental review form – MFA will provide the template to the BASP to complete.

Note: the negotiation of the terms of the engagement is between the BAS provider and the client firm only, and the BASP is solely responsible for the collection of fees. Palladium is under no obligation to pay, subsidize, support or collect any fee or cost of any kind agreed upon between the client firm and the BASP.

  1. Deliverable 1 (Debt or Equity Application): The debt or equity application must be completed and accepted by the financial intermediaries or investor(s). The debt or equity application must be for incremental (new) financing and is dependent upon the nature of the funding. For financial institution loans this would be a formal loan application or formal request for existing credit facility increase. For debt or equity listing on an organized exchange (such as GSE or GAX) this would be submission of application with accompanying documents to the SEC and/or the GSE/GAX for listing. For private placements of either debt or equity this would be the equivalent of an investment memorandum.

The Subcontractor must provide evidence of a completed debt/equity application(s) as follows:

• Confirmation by the financial intermediary /investor(s) of receipt of a completed application for financing or increase in the amount of an existing credit facility. The confirmation must include the date of the completed application.

• MFA, at its discretion, may require further documentation of a particular transaction before certifying this deliverable. Should MFA determine that the documents are deficient in any way, MFA may withhold or postpone payment of first deliverable until documents are deemed to be acceptable.

  1. Deliverable 2 (Approval of Debt or Equity to M-SMILE): The Subcontractor must provide evidence of the receipt of incremental funding by the M-SMILEs from the financial intermediary/investor(s).

  2. Proof of financing approval must be provided to MFA before this deliverable can be considered complete. Evidence may include the loan offer/acceptance documents signed by both the financial intermediary and the enterprise in the case of debt financing; and, in the case of equity, evidence of a legally binding subcontract to invest or a signed letter from the investor attesting to the value of the transaction and its execution.

  3. MFA, at its discretion, may require further documentation of a particular transaction before certifying this deliverable. Should MFA determine that the documents are deficient in any way, MFA may withhold or postpone payment of second deliverable until documents are deemed to be acceptable.

The required deliverables and payment terms are included in the table below:

Milestone

Invoice payable by MFA for initial loan/ investment for a M-SMILE

Only relevant for follow-on transactions to the same M-SMILE:

Invoice payable by MFA for a second loan/investment to same M-SMILE

Invoice payable by MFA for a third loan/investment service to same M-SMILE

Pre-approval:

Documents Required:

Engagement letter, work plan, deal scoring matrix, Environmental Review Form**

No payment associated with the pre-approval process.

No payment associated with the pre-approval process.**

No payment associated with the pre-approval process.**

Deliverable 1:

Documents Required:

Evidence of loan or debt/equity/grant application submitted to FI and FI acknowledgement of receipt; Completed Environmental Review Form

Fee is 1.0% of transaction value.

Note that this second deliverable is capped at $4,000, therefore, all transaction values of above $400,000 will receive $4,000 for deliverable 1.

Fee is 0.5% of transaction value.

Note that this second deliverable is capped at $2,000.

Fee is 0.25% of transaction value.

Note that this second deliverable is capped at $1000.

Deliverable 2:

Documents Required:

Evidence of written approval of financing to the enterprise (e.g., offer and acceptance letter and terms sheet) by the FI/Investor.**

Transaction value up to $400,000, fee is 2.0% of transaction value;

PLUS

For the incremental portion of the transaction value of $400,001-$1,000,000, fee of 1.2% of incremental portion is added;

PLUS **

For the incremental portion of the transaction value of $1,000,001 and more, fee of 0.80% of incremental portion is added.

Note that this second deliverable is capped at $16,000, therefore, all transaction values of $1,100,000 or greater will receive $16,000 for deliverable 2.

Transaction value up to $400,000, fee is 1.0% of transaction value;

PLUS

For the incremental portion of the transaction value of $400,001-$1,000,000, fee of 0.60% of incremental portion is added;

PLUS

For the incremental portion of the transaction value of $1,000,001 and more fee of 0.4% of incremental portion is added.

Note that this second deliverable is capped at $8,000.

For transaction value up to $400,000, fee is 0.5% of transaction value;

PLUS

For the incremental portion of the transaction value of $400,001-$1,000,000, fee of 0.3% of incremental portion is added;

PLUS

For the incremental portion of the transaction value of $1,000,001- and more, fee of 0.2% of incremental portion is added.

Note that this second deliverable is capped at $4,000.

Maximum fee payable by MFA per financing transaction supported:

USAID-MFA will pay a maximum of $20,000 per deal 250,000 and above.

USAID-MFA will pay a maximum of $10,000 per deal for a second follow-on loan.

USAID-MFA will pay a maximum of $5,000 per deal for a third follow-on loan.

Bonuses for deal size above $5,000:

  1. Female and Youth-Led M-SMILEs: MFA proposes bonus payments to BAS providers who close deals for female and youth-led M-SMILEs. The following bonuses will be paid in addition to the Deliverable 2 for female- and youth (15 -29 years)-led enterprises:

· Financing of $50,000 and below will attract an additional bonus of $200

· Financing of $50,001 to 250,000 will attract an additional bonus of $400

· Financing above $250,000 will attract an additional bonus of $600

  1. BASP Target Attainment Bonus: For BASPs who meet their financing target of $2M in a calendar year, an additional bonus of $1,000 will be paid at the completion of the year.

  2. Complex Transaction Bonus: BASPs who will raise capital from complex and alternative sources other than the traditional financial institutions will be paid an additional bonus of $1,000 for deliverable 2.

Communication

BAS provider will be required to email progress reports on a quarterly basis, updating MFA staff on the status of each financing/investment deal underway. These reports shall be submitted in a format to be agreed upon with MFA and the successful bidder. Information should include:

• Name of organization/client

• Overview of accomplishments

The following accomplishments and results for the client firm:

• Name of financial intermediary providing the debt or equity credit to the client

• Value of loan or investment obtained for client

• Interest rate

• Price per share

• Moratorium given (if any)

• Location of loan recipient

• Total value of fees paid to BAS Provider broken down by source

• Repayment of loans

• Any other relevant indicators

As part of the BAS provider’s commitment to working with MFA, they agree to be a part of organizational capacity building assessments agreed by MFA. We also expect BAS providers to participate in networking and lessons learned activities. The BAS provider will be required to provide information on finance success stories to the MFA communications team.

Technical support to be provided by MFA

MFA to facilitate the work of BASPs will share opportunities that are identified through the MFA Assessment Opportunities for their consideration. The list will be made available to all BASPs and further engagement with these M-SMILEs will be the sole prerogative of the BASP. MFA will not match M-SMILEs to BASPs, unless there is a well-documented reason for doing so. MFA will also award incentive grants through a competitive process to financial institutions that are willing to provide financing to the target value chains. This list of PFIs will also be provided to BAS provider on signature of the contract. The BAS provider is not limited to working with the financing opportunities or financial institutions identified by the project, these should just be seen as a guide.

MFA may also provide support to potential financing in the following ways:

• Targeted capacity building for the client firm

• Targeted capacity building for BAS providers

• Targeted capacity building for financial institutions

• Market linkages

PROCUREMENT INTEGRITY AND ETHICS

It is Palladium’s Policy that no gifts of any kind and of any value be exchanged between vendors/contractors and Palladium personnel. Discovery of the same will be grounds for disqualification of the vendor/contractor from participation in any Palladium’s procurements and may result in disciplinary actions against Palladium personnel involved in such discovered transactions.

Attachments

Please review the additional documentation and proposed contracts terms and conditions which should be given consideration when preparing your proposal. By submitting your bid you will certify that that you are in agreement with the contract terms and conditions as included in this solicitation and that all prices include all aspects of the required compliance with the terms and conditions of the proposed contract.

· Past Performance and Technical Proposal Format

· Local Company Data Sheet

· Reference Format

· Due diligence form

· Business Partner Code of Conduct

· Certifications: Terrorism, Ant-Kick Back, Debarment, Foreign Corrupt Practices Act

· Sample Contract Template

Any contract/purchase order resulting from this solicitation must be signed by both parties in order to be considered valid and in force. All costs associated with, but not limited to, production, preparation and/or delivery of goods or services, including deliveries, accepted by Palladium staff, without a fully executed (signed by both parties) contract/purchase order, are at the vendor’s risk only. Palladium shall not pay for any costs, without limitation, associated with production, preparation or delivery of goods and/or services under this or any other contract/purchase order, which has not been signed by both parties.

If your proposal is successful, you will be required to enter into the Company’s standard contract for the types of goods or services being provided. In the provision of the Goods and Services, you will be required to comply with the Company’s policies, including (without limitation) its Business Partner Code of Conduct and any relevant client terms and conditions. Potential suppliers must also comply with the Company’s Business Partner Code of Conduct in the submission of any proposals pursuant to this RFP.

If you are bidding as part of a joint venture, partnership or similar, please make this clear in your submission. Likewise, if you propose to subcontract any part of the goods or services provision, then disclose this fact within your submission. The Company may require additional information from you and approval for subcontracting will not be automatic as subcontractors will be subject to Palladium’s Due Diligence process.

[1] Northern Region (Gushiegu, Karaga, Mion,* *Sagnerigu, Nanton,* *Yendi),North East (East Mamprusi,Mamprugu Moagduri); **Upper East Region (Bawku Municipal, Bawku West, Garu, Tempane), Upper West Region (Daffiama Bussie Issa, Nadowli-Kaleo, Sissala East, Sissala West, Wa East)

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