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**ANNUAL PROGRAM STATEMENT**

**USAID-TANZANIA-07-004-APS**

**Economic Growth Objective of the Strategic Framework**

1.  **Statement of Purpose**

The purpose of this Annual Program Statement (APS) is to publish
information about USAID/Tanzania's Strategic Framework objective of
Economic Growth (EG). This APS provides prospective grantees with an
opportunity to develop and submit applications for U.S. Agency for
International Development (USAID) funding under Program Areas of i)
*Agriculture*, ii) *Trade and Investment*, and iii) biodiversity element
of *Environment*.  This APS describes the strategy, the APS application
process, the criteria for evaluating applications, and information on
administration of awards and point of contact. Prospective partners may
include a wide range of U.S., international, and local/regional
organizations such as: private voluntary organizations, foundations,
civic groups, faith-based institutions, community-based groups, private
businesses and associations, philanthropic organizations, and advocacy
groups. The Agency strongly encourages U.S. organizations to collaborate
with indigenous organizations in their proposals.

Through this APS, the United States Government (USG), as represented by
the USAID program in Tanzania, is inviting applications (proposals for
funding) from any U.S. or non-U.S., non-profit or for-profit
nongovernmental organization (NGO), public international organization
(PIO or IO), or other qualified and legal non-USG organization (or
consortia), to implement activities in support of its Economic Growth
activities. The issuance of this APS does not constitute an award
commitment on the part of the USG, nor does it commit the USG to pay for
costs incurred in the preparation and submission of any application.
USAID reserves the right to fund any or none of the applications
submitted and to negotiate separately with an applicant if such an
action is considered to be in the interest of the USG. This program is
authorized in accordance with the Foreign Assistance Act of 1961, as
amended. Awards shall be made in accordance with 22 CFR 226, OMB
Circulars A-21 (for universities) or A-122 (for non-profit
organizations), ADS 303 and USAID Standard Provisions.

This APS is organized as follows: (1) Statement of purpose; (2) Brief
background to Tanzania's situation in agriculture, trade and investment,
and environment; (3) Description of types of activities for which
applications will be considered; (4) Strategic Framework (5) Description
of the funding available, the process, and the requirements for
submitting applications, and evaluation criteria; (6) Branding strategy;
and (7) Reference to related documentation available on the internet. 

2.  **Background**

Increased agricultural income is central to reducing poverty in
Tanzania, and is a key component in the National Strategy for Growth and
Poverty Reduction (MKUKUTA in Swahili acronyms). Agriculture is the
largest sector of the economy contributing about 45 percent of GDP and
employs 80 percent of the labor force. Agriculture accounts for most of
the economic activity in rural areas. The sale of agricultural
commodities accounts for 70 percent of rural incomes. Most Tanzanian
farms are small -- over 50 percent are less than one hectare. Almost all
of Tanzanian agriculture depends on rainfall, productivity is very low
and yields fluctuate widely from season to season.

Despite its importance in the economy, the agricultural sector has not
maximized its potential in contributing to the poverty reduction goal.
Previous socialist regimes resulted in poorly functioning agricultural
cooperatives, leading to mismanagement and inefficiency in agricultural
marketing systems. Despite the privatization of state companies, the
private sector has not expanded fast enough to fill the vacuum left by
collapsed cooperatives and state companies in supplying farm inputs,
processing, marketing and export of crops. Currently, there are few
functioning cooperatives and producer organizations. Many farmers face
serious problems in: identifying markets for their crops; understanding
how to meet market standards; and difficulty in accessing inputs,
extension advice, and credit. While the nation's research and extension
systems are in place, the delivery of services is weak. Other
constraints to the agricultural sector are costs associated with poor
infrastructure, especially rural roads and electricity. Multiple local
taxes, unstable policies, bureaucracy and corruption increase the costs
and risks of accessing national, regional, and international markets.

Fortunately, the Government of Tanzania is taking steps to strengthen
the country's agricultural sector. Agricultural reforms in 90s are
showing results. During the past five years (2001-2005), agricultural
sector grew at 5 percent, which is slightly below the economy (GDP)
growth rate of 6 percent. In the same period the share of agriculture in
total exports declined from 40 to 20 percent as exports from other
sectors, such as mining, grew much faster. Major agricultural exports
are coffee, cotton, cashew nut, tea and sisal. Although the performance
of the agricultural sector has been positive, the growth rate is not
sufficient to have a significant impact in reducing poverty. USG team
will continue to support the Government of Tanzania in its effort to
boost the performance of agricultural sector, in collaboration with
other development partners.

A recent Agricultural Sector Review (ASR) identified horticulture as one
of the 'sources of growth.' The Government of Tanzania prioritizes
horticulture as a potential sub-sector for export diversification to
mitigate the risk of dependency on traditional exports, whose price
recently has been declining and fluctuating widely. Part of activities
resulting from this APS will target the horticulture sector,
particularly floriculture and vegetables for export.

There is a pressing need to reconcile and integrate the requirements of
natural resource conservation with opportunities for long-term economic
growth and poverty alleviation. Achieving this balance also requires
attention to natural resource governance issues as a means to integrate
conservation and development agendas. By helping Tanzania to attain such
a balance, significant results can be achieved in areas of biodiversity
conservation, improved livelihoods, and poverty reduction. This APS will
support projects with activities that integrate agriculture and
biodiversity conservation.

3.  **PROGRAM OBJECTIVES AND ACTIVITIES**

The objective of this program is to foster economic growth by promoting
agriculture, trade and investment and in particular those activities
that support sustainable management of natural resources and
biodiversity conservation. With the funds currently available to support
activities under this APS, USAID will give particular consideration to
proposals that address the following aspects:

A.  Support the growth and expansion of the horticulture/floriculture
    sector

B.  Focus on commodities that will enhance Tanzania's export earnings
    and contribute to its export diversification (import substitution
    targeting supermarkets, tourist industry, etc., might be considered)

C.  Support producer organizations and the integration of small farmers
    or out-growers in the value chain of export crops

D.  Promote Tanzania's participation and benefit from African Growth
    Opportunity Act (AGOA) initiative

E.  Support sustainable management of natural resources and the
    conservation of biodiversity

F.  Address gender aspects and other sector cross-cutting issues such as
    HIV/AIDS

G.  Prioritize USAID Mission geographic focus (refer to Section 3.3)

H.  Work in partnerships with or strengthen the capacity of GOT such as:
    the Ministry of Agriculture, Food Security and Cooperatives; the
    Ministry of Natural Resources and Tourism; and the Ministry of
    Industry, Trade and Marketing; or any of their agencies

I.  Support the Mission's Operational Plan (refer to Section 4)

Proposed activities should impact a large number of beneficiaries (i.e.,
both women and men) and have high potential for community involvement.

**3.1 Horticultural Sector**

Tanzania's floriculture and horticulture sectors have high growth
potential according to the Diagnostic Trade Integration Study (DTIS) and
Tanzania's National AGOA Strategy. The recent Agricultural Sector Review
pinpointed horticulture as one of the 'sources of sector growth'.
Despite its potential, the sector has been facing mostly non-tariff
barriers that prevent exporters from maximizing their profit for further
investment and expansion. USAID will fund activities that support
development of the horticultural sector to: overcome export constraints;
increase its profitability; and integrate small out growers into export
commodity value chains.

Tanzania's floriculture sector comprises of about 10 large farms in
Northern highlands of Arusha and Kilimanjaro regions that employ over
7,000 persons, among them over 50 percent are women. Cut flowers exports
totaled \$12 million in 2005 (\$34 million for total horticulture),
destined primarily for Europe. Tanzania's horticultural exports grew by
41 percent in terms of value (37% by volume) between 2001 and 2005.
Despite the impressive growth, Tanzania's horticultural sector lags far
behind that of other countries in the region such as Kenya which earned
\$642 million in 2005.

There are a few large companies in Tanzania that export fresh vegetables
and employ more than 2,600 people. In addition there are some vegetable
producer organizations selling fresh produce to import substitution
market such as supermarkets, tourist hotel, airline caterers, etc.
Examples of such producer organizations include: Usambara Lishe Trust
(ULT) and Ubiri Lushoto Union (ULU) in Tanga region. Tanzania
Horticultural Association (TAHA) represent 18 member companies located
in and around Arusha and Kilimanjaro regions that export fresh
cut-flowers, fruits, vegetables, seeds and flower cuttings, mostly to
Europe.

[Addressing the Air-freight Challenge]{.underline}

Except for passenger planes, few cargo planes land at Kilimanjaro
International Airport (KIA) because of insufficient load. Currently a
substantial amount (60 percent) of horticultural produce is exported
through Kenya (Nairobi) and the remaining is by passenger planes.
Airplanes normally off-load some of the passengers and cargo at KIA
before proceeding to Dar es Salaam where they fly directly to Europe.
Occasionally, exporters would truck their produce to Dar es Salaam when
there is insufficient space available to airfreight their produce from
KIA, to avoid missing their order delivery, which is too expensive.

Exporters need to organize themselves and mobilize their exports to
achieve the minimum load necessary to make landing of cargo planes at
KIA financially viable. To broker the air freight deal, TAHA needs
technical support to analyze necessary information such as landing
costs, volumes of horticultural exports, sector growth, etc., necessary
to convince air freighters that it would be profitable to operate from
KIA. The grantee will work with TAHA to resolve the airfreight problem.

Kilimanjaro International Airport (KIA) has a new large but
underutilized cold storage facility. The air freight deal is therefore,
critical to transforming the horticultural industry. A number of farms
have embarked on expansion programs. However, increase in export volume
alone is not sufficient as freight cost would still be high if incoming
cargo planes are empty. TAHA needs support in coordinating their export
operations with those of importers to ensure incoming cargo planes have
sufficient imports and export loads. The grantee will support TAHA in
analyzing necessary import and export data for KIA and in developing a
strategy to reduce airfreight cost such as coordination of the
activities of exporter and importers.

TAHA needs support to strengthen its organization by mobilizing more
membership and creating mutual trust and cohesiveness among its members.
A more cohesive TAHA will boost its export volume while minimizing
default of collective agreements. The grantee will provide technical
assistance to strengthen the capacity of TAHA in governance, membership
mobilization and business matters such as generic promoting of the
industry and collective agreements, etc.

[Integrating Small Out-growers into the Value-Chain]{.underline}

There are opportunities to link more small farmers to horticultural
exporters as out growers especially for vegetables. Vegetable and flower
sub-sectors are complementary as increased export of vegetable could
boost the volume of fresh produce exported through KIA. Some out-growers
are certified by EureGap but further support is needed to ensure
compliance to such stringent Sanitary and Phyto-sanitary standards
(SPS). The industry needs technical training to extension workers,
out-growers, and food safety officers. Currently, some skilled workers
are hired from Kenya which increases production costs and deny local
communities employment opportunities.

Some producer organizations such as ULT and ULU are a step away from
exporting as they are already selling their produce to import
substitution markets such as supermarkets, tourist hotels and airline
caterers. With USAID support, such producer organizations could export
directly or through existing companies in Arusha and Kilimanjaro. For
instance, producer organizations could be supported to centralize some
of their post harvest operations such as cold storage and transport of
their produce or have their farms certified (by EureGap, Fairtrade,
etc).

[Export Markets Linkage]{.underline}

There is a potential to export to the US market through the preferential
market access treaty under AGOA (African Growth and Opportunity Act).
Tanzanian could export unique local flowers or add value to flowers by
mixing flowers into bouquets or by designing a unique promotion strategy
such as associating the horticultural sector with Mount Kilimanjaro and
Safari. The grantee will facilitate TAHA in exploring potential markets
overseas such as participation in international trade fairs. The grantee
will facilitate market linkage for small producers through out-growers
schemes while providing training on how to comply with SPS and other
international standards in the export markets.

[Service Provision: Backward and Forward Linkages]{.underline}

Beside out-growers contracts, there are opportunities for small farmers
and private sector to participate in the industry as service providers.
Such potential backward and forward linkages could include enabling
small farmers to supply composite manure and coconut fiber (cocopeat)
currently imported from Asian counties. Producer associations could be
assisted to establish nurseries for planting materials (currently
imported from Kenya) as a major concern of flower growers is to
eliminate diseases from planting materials and the substrate. For the
private sector opportunities exist in operating soil and tissue
laboratories. Currently greenhouses send soil and tissue samples to
laboratories in Europe for analysis. Greenhouses do not use often local
laboratories as their results are not reliable and sometimes fail to
deliver results in time leading to crop losses for exporters. Local
laboratories, mostly operated by public research institutions need
accreditation to international standards. The private sector could be
motivated to invest in laboratories if sufficient information on service
demand and potential financial profit is available. Some other donors
are assisting accreditation of food laboratories but none of them is
targeting the floriculture industry. USAID will support creative
proposals that will promote the participation of small farmers and
private firms in horticulture value chain by engaging in financially
viable and sustainable activities.

[Other Development Partners' Support to the Sector]{.underline}

Netherlands has been a traditional supporter to the flower industry in
Tanzania. Netherlands is the main destination market for flowers
exported from Arusha and Kilimanjaro. The current program which ends in
December 2007 supports TAHA's secretariat. TAHA also participates in the
Netherlands funded African regional program that promotes Public Private
Partnership in which they receive support in 6 projects to address
issues of rapid pesticide registration, management, intellectual
property right, etc. The prospective grantee will need to liaise with
ongoing programs of other development partners to avoid duplication of
effort and promote synergy.

**3.2 Other Commodities**

USAID/Tanzania has concluded that working through producer organizations
is an effective way to increase the market competitiveness of Tanzanian
commodities, resulting in increased incomes of small farmers. The
grantee will introduce new techniques and training and promote better
marketing practices. Commodities will be selected and activities will be
geographically focused to maximize the impact. High value commodities
will be targeted as they have potential to significantly increase
incomes, and create employment.

USAID/Tanzania also wishes to fund activities that will result in
increased access to markets and trade for Tanzanian agricultural
products. The grantee could focus on activities such as: increasing farm
to market links; expanding regional trade capacity, improving access to
market information, and reducing the legal and regulatory constraints to
marketing agricultural products.

USAID is interested in supporting activities that will: strengthen
producer organizations in governance; provide better business and
marketing services to their members; and advocate for reforms that would
promote enabling environment for agricultural investment and trade**.**
Activities should focus on the production and sale of traditional and
non-traditional crops that can raise household incomes and accelerate
the economic growth rate. Such activities could include programs to
increase smallholder productivity through better cultivation techniques,
inputs, and farming technologies. In addition, techniques and methods
that add value -- such as post-harvest storage and processing -- are
important areas of work that will support the overall goals of the
Mission. Other commodities may include livestock, spices, forest
products such as honey, aquaculture and mariculture.

**3.3 Management of Natural Resources and Biodiversity Conservation**

USAID will give considerations to proposals that contribute to the dual
goal of economic growth and sustainable management of natural resources
in the target geographic areas. For instance, horticulture could be
promoted as income diversification strategy for populations living
around protected areas of Mt. Kilimanjaro and Usambara (Lushoto)
mountains to reduce their dependency (and pressure) on natural resources
which could lead to deforestation and poaching of game animals.
Targeting such communities would diversify income sources and reduce
their dependency in protected land.

**3.4 Geographic Focus**

USAID/Tanzania is consolidating its activities to target selected few
regions to avoid spreading resources, and maximize the impact of USG
assistance and promote synergy among USAID programs and those of other
development partners. Preference will be given to proposals targeting
the following focal areas;

i)  Iringa region, the focal area of previous activities

ii) Northern highlands (Arusha, Kilimanjaro and Tanga)

iii) Coastal zone (Lindi, Mtwara, Coast regions and Zanzibar)

The horticulture activity, because of ecological limitations, will
target Northern Highlands regions of Arusha, Kilimanjaro and Tanga
(Lushoto). However, USAID will consider innovative proposals in other
geographic areas if they successfully meet program objectives.

**3.5 Synergies with USAID Programs**

USAID/Tanzania encourages strong synergies between and among Mission
Functional Objectives and/or programmatic focus areas (i.e., Health,
HIV/AIDS, and Democracy and Governance). The Mission also encourages the
inclusion of the cross-cutting themes, namely gender, HIV/AIDS,
democratic governance, urbanization, and youth in any proposal. Special
consideration will be given to applications that propose integrated,
creative, innovative solutions, as well as to applications that create
synergies with other on-going programs within the Mission and leverage
resources through public/private alliances.

Funded proposals that can clearly link the mentioned other USAID
activities to Economic Growth activities may be eligible for additional
funding from other programs. For instance, USAID staff during their
field visit observed that there are immigrant farm workers,
predominantly young women from distant regions working in greenhouses
and post-harvest handling of cut-flowers. While the industry has created
employment opportunity for women, such gender imbalance might increase
vulnerability of youth to HIV/AIDS. The APS will encourage project
proposals that will incorporate mitigating activities for HIV/AIDS.

**3.6 Gender Mainstreaming**

Addressing the gender issue, in particular cultural, economic and legal
gender inequalities, is critical in making progress in all development
sectors in Tanzania. Addressing gender in all USAID solicitations is a
mandatory requirement. Special attention will be devoted to proposals
whose programs and commodities lessen gender inequality by promoting
participation of women in the whole value chain beyond green houses so
as to achieve known synergies between increased women's income and
improvements in social capital such as better maternal and child health
and nutrition. The applicant should describe how the project would
adequately address gender issues and demonstrate and integrated
understanding of gender concerns in the activities being proposed.

**3.7 Working in Partnership with the Government of Tanzania**

Agricultural Sector Development Program (ASDP) is an important
initiative by the GOT that aim at creating an enabling environment for
improving agricultural productivity and profitability, improving farm
incomes, thereby contributing to reducing rural poverty and ensuring
household food security. Program designed from this APS will articulate
strategic areas in the Government of Tanzania's Agricultural Sector
Development Program (ASDP), namely, i) strengthening the institutional
framework, ii) creating a favorable environment for commercial
activities, and iii) strengthening marketing efficiency for inputs and
outputs. Designed activities have to be coherent with and address issue
pertaining to the National Environmental Policy.

The prospective grantee will design program activities that are in line
with the priorities of: the Ministry of Agriculture and Food Security;
the Ministry of Natural Resources and Tourism; and the Ministry of
Trade, Industries, and Marketing.

**3.8 Compliance with IEE**

Activities proposed in this APS need to comply with USAID's Initial
Environmental Examination ([ADS
250](http://www.usaid.gov/policy/ads/200/250.pdf) )

**3.9 Emphasis on Commodities**

USAID/Tanzania Mission emphasizes programs that maintain a balance in
allocation of resources among technical and physical support to
beneficiaries. For instance, technical training without resources may
limit farmers from adopting improved technologies. USAID resources could
be spent in providing commodities, facilities or inputs to meet
specialized needs of small farmers. USAID Mission in Tanzania advocates
that ***twenty five to forty percent of the project budget should be
allocated to acquisition of commodities*** such as facilities to enable
small farmers add value or market their produce or support producer and
business organizations.

4.  **STRATEGIC FRAMEWORK**

USAID/Tanzania will fund activities that support its Mission Operational
Plan outlined in this section. USAID/Tanzania's Strategic Framework and
"Transformational Diplomacy" goal is "**To help build and sustain a
democratic, well-governed Tanzania that respond to the needs of its
people, reduce widespread poverty and conduct itself responsibly in the
international system".** The APS will allow a variety of new activities
under the Economic Growth Functional Objective (FO) focusing on three
Program Areas (PA), i) *Agriculture*, ii) *Trade and Investment*, and
iii) biodiversity element of *Environment*.

**4.1 Agriculture**

The USG long term goal is to contribute to the national poverty
reduction goal by promoting agricultural, trade and investment, and
biodiversity. Short-term goals are to strengthen farmers' business
capacity through producer organizations, improve policy environment and
increase the competitiveness of Tanzanian commodities. The agriculture
program area focuses on two 'elements', namely, i) agricultural enabling
environment, and ii) agricultural sector productivity.

The enabling environment element is based on the premise that Tanzania's
private sector is weak due to previous policy regimes, so further policy
reforms are crucial to address challenges related to regulatory
institutions, land policy, multiple taxation, high transport, high
energy cost and lack of entrepreneurial attitude. USG support in this
element aims to build the capacity of producer associations in
governance, policy advocacy and business skills. The program envisages
that stronger advocacy by producers' organizations will lead to a more
stable business environment that encourages investment in agriculture
and enhance competitive exports. The program will link these
organizations to the greater market network by facilitating commercial
partnerships and alliances with agribusinesses and traders.

Activities in the enabling environment element will fall under three
sub-elements;

i)  Agricultural resource policy: Assist producer organizations in
    policy advocacy for further reforms in regulations related to
    agricultural marketing and trade

ii) Agricultural Market Standards and Regulations: Address non-tariff
    trade barrier such as support to build compliance capacity to
    Sanitary and Phyto-sanitary (SPS) Standards

iii) Public Investment Policy: Promote investment in agricultural sector

The most critical problem in agriculture is low productivity. Current
growth in agriculture is attributed to land expansion rather than
increased productivity (in fact productivity has been declining
steadily). USG will assist to increase productivity in selected
high-value crops such as horticulture. This effort will support
improvement in post-harvest operations such as processing, packing,
grading, cold storage, etc.

Activities in productivity element will consist of three sub-elements:

i)  Research and Technology Dissemination: Productivity could be
    enhanced through dissemination of improved farm technologies. A
    recent agricultural census (2002/3) indicates only six percent of
    farms used inorganic fertilizers, four percent used tractors while
    2.4 percent of planted area was irrigated.

ii) Agribusiness and Producer Organizations: Most Tanzanian producers
    are small-holders with less than two hectares of land. Bulking and
    collective marketing of commodities through producer organizations
    is necessary to achieve economies of scale in post harvest
    operations. Producer organizations are prerequisite to successful
    linkages to markets, exporters, input suppliers, credit and other
    service providers.

iii) Markets and Trade Capacity: As an incentive to increased
     productivity, producers need to be linked to markets and make their
     production demand-driven

**4.2 Trade and Investment Capacity**

The Government of Tanzania has recognized that development of an
export-oriented economy is central to the goal of enhancing incomes,
reducing poverty and contributing to economic growth. Tanzanian
agricultural exports are uncompetitive in international markets because
of; limited value addition, relatively poor quality products, and high
production, processing and transport costs. USG's goal is to increase
Tanzania's exports of targeted commodities to regional and international
markets. The program will focus on key commodity sub-sectors, and
through an integrated value-chain approach to help create and sustain
the capacity of producer organizations to access markets.

Activities in this program area will focus on the element of enabling
environment such as reducing tariff and non-tariff trade impediments.
There are two sub-elements in the enabling environment:

i)  Trade communication and Technologies, and

ii) Trade knowledge and skills.

For instance, activities in the latter sub-elements could involve
training of farmers on how to comply to SPS standards. Efforts to
improve transportation linkages for export crops, such as flowers and
specialty vegetables, will be considered under these elements

**4.3 Environment**

Rural livelihoods including agricultural production depend on use of
natural resources such as land (forest, protected areas) and water.
Current productivity levels are very low and recent growth in production
has been attributed mostly to land expansion. Such trends could have
adverse impact to the environment as farmers encroach marginal lands and
protected areas. The environment program area will mitigate some of the
potential environment hazards through promotion of environmental
friendly agronomic practices, income diversification to reduce pressure
on extraction of natural resources and by engaging communities around
protected areas in activities that would promote biodiversity.
Activities in this program area will focus on biodiversity sub-element.

To quantify the results and impact of USG support, some indicators have
been selected for inclusion in the Operational Plan. A summary of the
Operational Plan showing Program Area, Element, Sub-elements and
Indicators is shown in Annex 1.

5.  **FUNDS AVAILABLE, APPLICATION AND EVALUATION**

**5.1 Overview:**

Applications received under this APS will be reviewed based on full and
open competition and in accordance with the procedures and selection
criteria identified below. Competition under this APS will consist of a
two-tier step process where applicants first submit a concept paper for
an initial competitive review. Applicants successful in the concept
paper stage may then submit a final proposal. Only successful
first-stage applicants will be considered by USAID for funding. This
section provides details on funding levels, applicant eligibility,
contents of concept and final proposals, evaluation criteria, and APS
timeframe (including information on submission deadlines).

**5.2 Funding Available:**

USAID/Tanzania expects to make available approximately \$2 million per
year to finance various types of activities under Economic Growth for
this APS. The actual number and sizes of grants or cooperative
agreements will be a function of how the Economic Growth program evolves
as well as the number and nature of the activities funded. The actual
number of awards under this APS is subject to the availability of
funding and final approval of the Mission's Operational Plan. However,
USAID Mission anticipates funding two large proposals and at least two
small projects. For the purposes of this APS, the maximum annual USAID
contribution to a grant award is \$700,000. USAID will only consider
proposals with a minimum value of \$100,000 per year. Funds for
implementing the proposed projects are expected from July 2007. Part of
the horticulture budget will be funded under Economic Support Funds
(ESF), which will be available earlier.

The Mission reserves the right to make multiple awards, or no awards at
all, through this APS. USAID/Tanzania intends to work with large and
small organizations and organizations that have previous experience
working with USAID as well as those that do not. Implementation of
projects arising from this APS may be between one and two years.

USAID/Tanzania reserves the right to award cooperative agreements or
grants when deemed appropriate. A cooperative agreement will permit the
"substantial involvement" of USAID in program activities. Specifically,
USAID substantial involvement may include 1) the approval of annual work
plans, 2) the approval of specified key personnel, 3) the approval of
program monitoring and evaluation plans, 4) efforts at joint
collaboration including serving as members on advisory committees
concerned with technical or programmatic issues, and 5) the concurrence
on eligibility requirements and/or the substantive provisions of the
sub-awards, and on the selection of sub-award recipients. Refer [ADS
303.3.11](http://www.usaid.gov/policy/ads/300/303.pdf) for full
substantial involvement areas.

Financial reporting will depend on the payment provisions of the
award(s). This cannot be determined until the successful applicant(s) is
(are) selected. In no case, however, will financial reporting be
required more frequently than progress reporting. Such reporting will be
made quarterly, with reports due 30 days after the end of each calendar
quarter. Final progress reports will be due 90 days after the expiration
of the award(s).

New organizations to USAID are invited to submit applications.  However,
resultant awards to these organizations may be delayed so that USAID can
undertake necessary pre-award qualification reviews of these
organizations.  Please note that this process can take approximately 60
days. These organizations should take this into account and plan their
implementation dates and activities accordingly.

**5.3 Proposal Content:**

USAID/Tanzania requests all interested applicants to submit proposals in
line with the content and format as described below.

**5.4 Concept Paper:**

USAID/Tanzania requests all interested applicants to submit an initial
application ("Concept Paper") of not more than five pages (inclusive of
all attachments, annexes, or other accompanying documentation). In
accordance with 5 CFR 1320, the Paperwork Reduction Act, only the
original and two copies of any application shall be required (See 5 CFR
1320). Concept Papers should not include budget specifics, but they
should include an estimate of the total cost of the proposal. If USAID
determines that the Concept Proposal is competitive, USAID will request
the applicant to submit a Final Proposal in line with the content and
format as described below. Applicants should submit both electronic and
hard copies of their concept note through the address indicated below.

**5.5 Final Proposal:**

Final Proposals must be submitted in size 12, Times New Roman font and
should not exceed 20 pages (exclusive of appendices or attachments) and
include the following information:

-   Table of Contents (listing all page numbers and attachments)

-   Executive Summary (not to exceed one page)

-   Body of Proposal, which will follow the following outline:

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-   Introduction

    -   Background

    -   Goals and Objectives

    -   Relevant Organizational Experience

-   Identification of Specific Problem(s) to be Addressed

    -   Proposed Interventions

    -   Technical Approach

    -   Implementation plan/ Work plan

-   Expected Results

    -   Results anticipated and relevance to the USAID mission and
        Economic Growth Strategic Framework

    -   Performance Monitoring Plan

    -   Sustainability plan

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-   Appendices or Attachments

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-   Application Form SF-424

-   Detailed budget

-   CVs of key personnel

-   Past performance reviews

-   Relevant information about implementing partners, including
    documentation of their intent to participate

-   Other supporting documents such as past performance references,
    letters of support, and other supporting documents.

**5.6 Evaluation Criteria:**

To be considered for funding under this APS, proposed programs (Full
proposal) must meet ***all*** of the following requirements:

-   Proposals must have clearly defined objectives that lead to
    measurable results through a sound methodology.

-   Proposals should reflect some combination of the following factors;
    expertise and/or experience, innovative and new ideas, unique
    knowledge of or experience with the program area.

-   Proposals must clearly and creatively promote gender equity.

-   Proposals must address priorities and concerns described in this
    APS.

-   Proposals must offer promise of significant economic and social
    development impact, as measured, for example, by the number of
    direct and indirect beneficiaries, returns on investments, and/or by
    the potential for replication or scale-up over time.

-   Proposals must be feasible from a technical, economic, financial,
    and social perspective.

After all of the above requirements have been met, Final Proposals will
be evaluated and awarded points based on the criteria below. All
proposals will be ranked according to the number of points received, and
the highest ranking applicants will be matched to the amounts and types
of funds that are available.

**A. TECHNICAL (70%)**

-   [Strategic Fit]{.underline} (15%): The likelihood that the program
    for which funding is sought will make a significant contribution
    towards achieving the USAID Mission and Economic Growth's Strategic
    Framework.

-   [Sustainability of the Approach]{.underline} (15%): The degree to
    which the proposed technical approach can reasonably be expected to
    produce the intended outcomes. The likelihood that the program being
    supported will continue beyond and without USAID funding.

-   [Programmatic Factors]{.underline} (10%): The geographic focus of
    the interventions and the potential for poverty reduction by
    promoting economic growth in the target sectors of agriculture,
    trade and investment, and environment.

-   [Past Performance]{.underline} (10%): Applicants must submit a list
    of all contracts, grants, or cooperative agreements involving
    similar or related programs over the past three years prior to
    receiving an award. As part of the evaluation of past performance,
    USAID will evaluate the extent to the submitting organization used
    and promoted the use of small business concerns under current and
    past awards, including:

> \- Previous contractual use of Small and/or Disadvantaged Businesses
> in program implementation.

\- Use of Minority Serving Institutions (MSI).

> \- Demonstrated success in providing similar services on past
> contracts and or assistance instruments.

-   [Management Plan]{.underline} (10%): An organizational and
    management plan including planned interaction with department and
    agencies of the Government of Tanzania, local governments, NGOs and
    other development partners and institutions to achieve expected
    results.

    -   Ability to recruit and retain qualified professional staff.

    -   Ability to establish and maintain an extensive operation
        involving U.S., expatriate and local staff in a developing
        country.

    -   Ability to successfully provide managerial and technical
        back-stopping for a requirement of this size and complexity.

    -   Backstop support services including financial management, and
        administrative support such as ability to mobilize travel
        authorizations in a timely fashion will also be evaluated.

-   [Key Personnel]{.underline} (10%): The application will provide
    evidence that the program will have the appropriate technical,
    managerial and financial staff to implement the program. If
    applicable, the proposal will provide evidence that the program will
    have appropriate staff at the organization\'s headquarters to
    support the field, with an adequate number of field visits, and a
    reasonable focus on the use of host country nationals in senior
    management positions.

**B: COST (30%)**

Cost will be evaluated for reasonableness. Proposals that have more
efficient operational systems that reduce operation costs will be more
favorably considered

-   [Cost effectiveness]{.underline} (30%): The extent to which the
    proposed approach attempts to reach the largest number of
    beneficiaries at lowest cost; and matches the objective and proposed
    benchmarks and nature of the activity.

All applicants will be notified in writing as to the status of their
application within 30 days of the award decisions. Note that all
applicants may be subject to a pre-award financial review. Furthermore,
organizations that believe they may not meet USAID's financial
accountability requirements are encouraged to submit their proposal in
partnership with eligible U.S. or international or regional
organizations that are experienced with these requirements in order to
promote accountability and sustainability.

**5.7 Process:**

This is an open APS, meaning that concept notes and proposals will be
collected for one year from issuance of the APS. All proposals submitted
to USAID will be reviewed and considered for funding. The first planned
review will be held 45 days after the issuance date of the APS. Subject
to the availability of funds and budgets of proposals accepted during
the first round, the second review of proposals may take place later in
the year. The Mission reserves the right to conduct subsequent proposal
reviews. Awards under this APS may begin in July 2007 and will not
exceed two years. In summary, submission deadlines for the first round
applications are as follows:

-   Concept Papers are due on April 30^th^, 2007

-   Final Proposals are due on June 15^th^, 2007

Awards will be made in accordance with the USAID Standard Provisions and
other applicable U.S. Government and/or non U.S. Government regulations,
which are available on the USAID web site
([www.usaid.gov](http://www.usaid.gov/)). For U.S. organizations, the
award will be administered under 22 CFR 226, OMB Circulars and the USAID
Standard Provisions. Applications should be made using Federal
Assistance Form -- SF424 found at:
<http://www.usaid.gov/procurement_bus_opp/procurement/forms/>

 

In accordance with AAPD 02-04, the Contractor/Recipient is reminded that
U.S. Executive Orders and U.S. law prohibits transactions with, and the
provision of resources and support to, individuals and organizations
associated with terrorism. It is the legal responsibility of the
contractor/recipient to ensure compliance with these Executive Orders
and laws.

6.  **BRANDING STRATEGY AND MARKING PLAN**

As part of USAID's branding initiative, marking and branding
requirements became effective on December 13, 2005 with the *Acquisition
& Assistance Policy Directive-AAPD 05-11- "Marking Under Assistance
Instruments."* This was followed by the January 2, 2006 publication of
*22 CFR 226 of the Federal Register, "Administration of Assistance
Awards to U.S. Non-Governmental Organizations; Marking Requirements."*
On January 10, 2007 policy revisions were issued for assistance
instruments along with guidance for contracts in the revised *ADS
Chapter 320, "Branding and Marking."*

For assistance awards, during pre-award negotiations, USAID/Tanzania's
Agreements Officer will request that applicants recommended for an award
(the 'Apparently Successful Applicant') submit a Branding Strategy and a
Marking Plan.   The specific details will be communicated at the time of
the request by USAID/Tanzania and a reasonable time frame for submittal,
review and negotiation will be established.

[A Branding Strategy]{.underline} describes how an activity is named,
communicated to beneficiaries, and promoted in the host country and must
be consistent with the regulatory requirements set out in all policy
directives noted above.

>  

[A Marking Plan]{.underline} details what activity or materials will
bear the USAID Identity and also must conform to the aforementioned
policy directives. 

Apparently Successful Applicants may request exceptions (programmatic in
nature) in their Marking Plans as per the guidance provided.

In the event of unanticipated safety, security or political concerns
etc, the Mission's Principal Officer may waive marking requirements.  

>  

All Branding Strategies and Plans will be reviewed by the Agreement
Officer and other USAID employees for adequacy.  Following completion of
the review, USAID/Tanzania will negotiate any required changes, approve,
and include the Strategy and Plan as part of the assistance or
acquisition award.

>  

Failure to submit or negotiate an acceptable Branding and Marking
Strategy will result in that applicant becoming ineligible for award. 

>  

Any estimated costs associated with branding and marking, if approved,
will be included in the Total Estimated Amount of the award.

>  
>
>  

Please refer to the links provided in the reference below for further
information on,

Revised ADS 320, CFR 226 and AAPD 05-11

7.  **IMPLEMENTATION OF E.O.13224 EXECUTIVE ORDER ON TERRORIST
    FINANCING**

The Contractor/Recipient is reminded that U.S. Executive Orders and U.S.
law prohibits transactions with, and the provision of resources and
support to, individuals and organizations associated with terrorism. It
is the legal responsibility of the

contractor/recipient to ensure compliance with these Executive Orders
and laws. This

provision must be included in all subcontracts/sub-awards issued under
this contract/agreement.\"

8.  **Information Useful for Completing an Application**

> ADS 303 "Grants and Cooperative Agreements to Non-Governmental
> Organizations" <http://www.usaid.gov/policy/ads/300/303.pdf>
>
> AAPD 05-07 "Supporting USAID\'s Standards for Accessibility for the
> Disabled in Contracts, Grants, and Cooperative Agreements"
> <http://www.usaid.gov/business/business_opportunities/cib/pdf/aapd05_07.pdf>
>
> AAPD 04 17 "Supporting USAID's Disability Policy in Contracts,
>
> Grants, and Cooperative Agreements"
>
> <http://www.usaid.gov/business/business_opportunities/cib/pdf/aapd04_17.pdf>
>
> AAPD 04-14 "Certification Regarding Terrorist Financing
>
> Implementing E.O. 13224 (Revision 2)"
>
> <http://www.usaid.gov/business/business_opportunities/cib/pdf/aapd04_14.pdf>
>
> (Voluntary) AAPD 04-08
> <http://www.usaid.gov/business/business_opportunities/cib/pdf/aapd04_08.pdf>
>
> AAPD 04-06 "Submission of Development Experience Documents"
>
> <http://www.usaid.gov/business/business_opportunities/cib/pdf/aapd04_06.pdf>
>
> AAPD 04-03 "Revised Regulations Concerning Debarment and Suspension
> and Drug-Free Workplace Applicable to Assistance"
>
> <http://www.usaid.gov/business/business_opportunities/cib/pdf/aapd04_03_corrected.pdf>
>
> Branding and Marking
>
> <http://www.usaid.gov/branding/>
>
> Government of Tanzania Policies (Agriculture, Environment)
>
> <http://www.tzonline.org/policies.htm>
>
> Initial Environmental Examination Guideline
>
> <http://www.afr_sd.org/documents/iee/docs/35Tanzania4_SO13_ENRM_IEE.doc>
>
> Tanzania country study on high value export vegetables
> http://[www.microlinks.org/aimvc](http://www.microlinks.org/aimvc)

Other Development Partners supporting horticulture in Tanzania:

1\) Royal Netherlands Embassy:

> http://[www.nethrlands-embassy.go.tz](http://www.nethrlands-embassy.go.tz/)

2\) World Bank: Diagnostic Trade Integration Study-DTIS

<http://worldbank.org/tz>

> Please, use contacts in the website or contact the agreement officer
> for the hard/electronic copies in the event you fail to download the
> documents.

9.  **Contact Information**

Please direct all questions and submissions in writing to:

> Kenneth P. LuePhang
>
> Agreement Officer
>
> USAID/Tanzania
>
> <kluephang@usaid.gov>

with copies to:

> Samuel S. Kiranga
>
> Acquisition Specialist
>
> USAID/Tanzania
>
> <skiranga@usaid.gov>
>
> Muna Kundya
>
> Acquisition Specialist
>
> USAID/Tanzania
>
> <mkundya@usaid.gov>

Concept Paper should also be submitted electronically an MS WORD
document.

**USAID/Tanzania Mailing Addresses**

Local (Tanzania) mailing address:

USAID/Tanzania

P.O. Box 9130 Dar es Salaam, Tanzania

Physical Address (for hand delivery and courier service only):

686 Old Bagamoyo Road

Dar es Salaam, Tanzania

U.S. Pouch Address (for submissions sent by U.S. mail):

2140 Dar es Salaam Place

Washington D.C. 20189-2140

**ANNEX 1: SUMMARY OF OPERATIONAL PLAN**

**1. [Program Area: Agriculture]{.underline}**

1.1 Element: Agricultural Sector Productivity

Sub-elements

Research and Technology Dissemination

Agribusiness and Producer Organizations

Markets and Trade Capacity

Target Indicators:

Number of institutions/organizations undergoing capacity/competency
assessment as a result of USG assistance

Percentage change in value of international exports of targeted
agricultural commodities as a result of USG assistance

Number of rural households benefiting directly from USG interventions

Number of individuals who have received USG supported short term
agricultural sector productivity training (disaggregated by sex)

1.2 Element: Agricultural Enabling environment

Sub-elements

Agricultural Resource Policy

Agricultural Market Standards and Regulations

Public Investment Policy

Target Indicators

Number of Individuals who have received USG supported short-term
agricultural enabling environment training (disaggregated by sex)

**2. [Program Area: Trade and Investment]{.underline}**

2.1 Element: Trade and Investment Capacity

Sub-elements

3.2.1 Trade communication and Technologies

3.2.2 Trade knowledge and skills

Target Indicators:

Number of firms receiving capacity building assistance to export

Number participants in USG supported trade and investment capacity
building trainings (disaggregated by sex)

**[3. Program Area: Environment]{.underline}**

3.1 Element: Natural Resources and Biodiversity

Sub-element: Biodiversity conservation

Indicator: Number of people receiving USG supported training in natural
resources management and/or biodiversity conservation.