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LSIC-RFA

Grants for “Engaging Business Development Services (BDS) to Build Business Capacity of Sanitation Entrepreneurs in North Sumatera Region Office (NSRO) of USAID IUWASH PLUS”

Wednesday, 8 January 2020
Deadline Wednesday, 29 January 2020
Contact Info IWPLProc_InboxLSIC@dai.com

 

Grants for “Engaging Business Development Services (BDS) to Build Business Capacity of Sanitation Entrepreneurs in North Sumatera Region Office (NSRO) of

USAID IUWASH PLUS, January 2020 – February 2021″

 

Request for Applications (RFA) Number RFA-0006

Issue Date : January 8, 2020

 

Title: Grants for “Engaging Business Development Services (BDS) to Build Business Capacity of Sanitation Entrepreneurs in North Sumatera Region Office (NSRO) of

USAID IUWASH PLUS”

  

Issuing Office & Email/Physical Address for Submission of Proposals:

Indonesia Urban Water, Sanitation and Hygiene (IUWASH Plus) Jakarta , Mayapada Tower 10th Floor, Jl. Jend. Sudirman Kav. 28, Jakarta 12920 ;

Email : IWPLProc_InboxLSIC@dai.com

Deadline for Receipt of Proposals: January 29, 2020 at the latest 17.00 p.m

Soft copy to : IWPLProc_InboxLSIC@dai.com

Point of Contact: IWPLProc_LSIC@dai.com
Anticipated Award Type: Fixed Amount Award Grants
Basis for Award: The applications will be evaluated according to the evaluation criteria set forth attached. An award will be made based on the Trade Off Method. The award will be issued to the responsible and reasonable offeror who provides the best value to DAI and its client using a combination of technical and cost/price factors.

 

A. Background

The USAID Indonesia Urban Water, Sanitation and Hygiene, Penyehatan Lingkungan Untuk Semua (IUWASH PLUS) program is a five-and-a-half-year initiative designed to assist the Government of Indonesia (GOI) in increasing access to water supply and sanitation services as well as improving key hygiene behaviors among urban poor and vulnerable populations. USAID IUWASH PLUS (also referred to as the “Project”) works with governmental agencies, the private sector, NGOs, communities and others to achieve the following “high level” results:

  1. An increase of 1,100,000 people in urban areas with access to improved water supply service quality, of which at least 500,000 are from the poorest 40% of the population (also referred to as the “Bottom 40%” or “B40”), vulnerable groups or Indonesia’s eastern provinces; and
  2. An increase of 500,000 people in urban areas with access to safely managed sanitation.

To ensure that improvements in access to WASH services are sustained, USAID IUWASH PLUS is guided by a development hypothesis that focuses on strengthening service delivery systems, so they can more effectively reach the poorest and most vulnerable segments of the population. In order to achieve this at scale, the program undertakes activities through four interrelated components, including: 1) improving household WASH services; 2) strengthening city WASH institutional performance; 3) strengthening the WASH financing environment; and 4) advancing national WASH advocacy, coordination and communication. In support of these components, USAID IUWASH PLUS also implements a Local Sustainability and Innovation Component (LSIC) that is designed to stimulate WASH innovations that strengthen community, private sector and government WASH service provision.

 

B. Activity Background

To achieve the above objectives, and within the framework of Sanitation Marketing, USAID IUWASH PLUS plans to collaborate with Business Development Services (BDS). BDS will strengthen the sanitation market, by strengthening businesses to entrepreneurs, such as masons, building material producers, sanitation business associations, banks and microfinance institutions so that they are able to do business in this sector in a sustainable and independent manner. BDS will conduct an assessment of potential areas for sanitation marketing, identify sanitation entrepreneurs and increase the capacity they need to run a sanitation business, develop curriculum and training materials for them, and ultimately assist these sanitation entrepreneurs to be sustainable in running their businesses.

Through this LSIC, USAID IUWASH PLUS will collaborate with 1 (one) BDS in each Region. This BDS will focus on assisting potential areas for the implementation of sanitation marketing based on data collected by USAID IUWASH PLUS, by not excluding the possibility in other areas if there is potential.

USAID IUWASH PLUS will work with BDS who have experience in developing curriculum and training materials and provide assistance to entrepreneurs in the areas of marketing, business development, financial management and sales.

IUWASH PLUS teams will provide capacity building to BDS candidates in terms of sanitation infrastructure development and Market Based Sanitation. This capacity building is intended so that BDS candidates get an overview of this business, and get references to develop a sanitation business for entrepreneurs who will be accompanied.

Under this LSIC, there are 2 activities that will be implemented through grants mechanism. The activities are: (1) assessment of potential Sanitation Entrepreneurs and identify its capacity building needs and (2) developing training modules and implementation tools as well as building capacity/technical assistance for them. The selecting of grantee will use a full and open competition for the whole activity. However, the activities will be implemented in two phases. The first phase will include the activity of assessment of potential sanitation entrepreneurs and the 2nd phase will include the activity of building business capacity of sanitation entrepreneurs. The first phase of the grant will use the Fixed Amount Award grant mechanism and the 2nd phase will depend on the result/recommendation from the first phase 1, including the decision if the grantee will be able to continue to the 2nd phase with no significant challenge and will be using the simplified grant mechanism. If from the first phase, the grantee is not able to provide the satisfactorily result, the 2nd phase will re-tendered.

The LSIC program will be implemented and managed by all 5 regional USAID IUWASH PLUS offices. The activities and steps in all 5 regions are the same, however, the scale and type of capacity building/technical assistance might be different from one region to others, it will depend on the results and recommendations from the first activity. BDS candidates are encouraged to propose the methodology and detailed tasks they will undertake to reach each of the objectives set forth above.

 

C. Objectives

Working closely with USAID IUWASH PLUS staff to better understand work undertaken to date, key local actors, and related issues and challenges, the main objectives of this scope of work are to:

  1. Assess the local market for household-level sanitation products and services that meet national standards (SNI).
  2. Assess the availability, technical competence, business acumen, business development needs and requirements of local:
    • Micro-scale construction-related businesses;
    • Small and medium-scale construction-related businesses;
    • Microfinance Institutions (MFIs);
    • Other businesses that will complement the sanitation business in the chosen area.
  3. Develop a Business Plan based on the results of the assessment above.
  4. Develop a curriculum and training materials and its implementation tools that responds to needs identified by the assessments above and for each type of business.
  5. Provide the above training and technical assistance to representative groups of each of the above types of businesses in each of the targeted cities / districts.
  6. Develop clear targets and recommendations for further development and business sustainability of private sector participation within the framework of Market-Based Sanitation development.

 Objectives number (1) through (3) will be implemented at the first phase, and objectives (5) through (6) will be implemented at second phase.

 

D. Activity Location

Working with substantial technical support and guidance from USAID IUWASH PLUS, the selected BDS entity is expected to be based in USAID IUWASH PLUS regionals with its field work focused on several cities and districts, including Kota Medan and/or Kabupaten Deli Serdang in NSRO or in other cities/districts within the NSRO-USAID IUWASH PLUS area that have potential for Market Based Sanitation.

 

E. Proposed Activities

Main tasks

The BDS Candidates need to focus on developing the methodology on the phase 1 with detailed plan, however the BDS Candidates still need to provide the methodology on doing the Phase 2 in general that focusing on how to build the business capacity of WASH entrepreneurs including the information for the key personnel for implementing the methodology. The detail process, approach, and contents for the 2nd phase shall be refined after the phase 1 is completed.

The 3-month program of first phase and 10-months program of second phase consists of at least the following main tasks:

 

PHASE 1: Assessment of Potential Sanitation Entrepreneurs

  1. Assess the local market for household-level sanitation products and services targeted for the B40 that meet national standards (SNI).

 Important Notes:

  • Based on previous research and current work, USAID IUWASH PLUS program staff will provide the BDS Candidates with a comprehensive data and review of the local market for household-level sanitation products and services.
  • BDS candidates must assess the area of assistance based on local market data for household-level sanitation products and services for the B40 that meet national standards (SNI)
  1. Assess the availability, technical competence, business acumen, business development needs and requirements of local:
  • Micro-scale construction-related businesses;
  • Small and medium-scale construction-related businesses;
  • Microfinance Institutions (MFIs);
  • Other businesses that will complement the sanitation business in the chosen area.

Important Notes:

  • BDS candidates must identify the sanitation business providers and entrepreneurs capacity building needs to serve the community in the selected area
  • BDS candidates must assess the capacity building and technical assistance that must be provided to each identified business provider. Capacity building that can be provided is training and technical assistance in developing business plans regarding identification of marketing areas and prospective customers, product marketing, product development, pricing, business development, financial management, after sales services and technical development of septic tanks.
  • The above assessment must be documented with finding presented in the assessment report.
  • The BDS candidates may choose their own tools to conduct the assessments. However, prior to doing so, they must review and assess the appropriateness of the USAID Enterprise Viability & Sustainability Diagnostic Toolkit (EVST) which USAID IUWASH PLUS will make available.
  1. Develop a Business Plan based on the results of the assessment above.

Important Notes:

  • BDS candidates must develop a Business Plan based on the results of the assessment
  • The Business Plan must be explain: general description of the area, promotion of sanitation entrepreneurs, profiles and data of existing sanitation entrepreneurs, background of technical assistance, the need for capacity building of each sanitation entrepreneur, training plans and technical assistance to sanitation entrepreneurs, baseline and endaline survey plan, and sustainability approach for WASH program.

 

PHASE 2: Building Business Capacity of Sanitation Entrepreneurs

  1. Develop a curriculum and training materials that responds to needs identified by the assessments above and for each type of business.

Important Notes:

  • USAID IUWASH PLUS will make available any curricula it has developed from previous efforts. This includes training materials for micro-scale construction-related businesses, as well as a WASH Microfinance Toolkit which has been produced as guidance for MFIs interested in developing financial products for the WASH sector.
  • Vice versa, BDS candidates will submit softcopy material to USAID IUWASH PLUS and USAID IUWASH PLUS can use training materials to increase the capacity of sanitation entrepreneurs in other regions.
  1. Provide training and technical assistance to sanitation entrepreneurs in each of the selected areas so that they can achieve the targets as previously stated. As stated above, these groups include:
  • Micro-scale construction-related businesses;
  • Small and medium-scale construction-related businesses;
  • Microfinance Institutes (MFIs);
  • Other businesses that will complement the sanitation business in the chosen area.

Important Notes:

  • USAID IUWASH PLUS will cover the cost of trainings (venues, any participant costs, etc.). The contractor will only be responsible for the cost of the trainers;
  • At the conclusion of training and technical assistance, the BDS must reassess the capacity of participating enterprises to determine any changes as compared to the assessments conducted under Task (1).
  • BDS candidates must documented all complete training and technical assistance activities (pictures, material, timetable, speaker, attendance list, pre and post test, discussion results with participants).
  • All documents will be attached to the final report.
  1. Develop a final report including recommendations for sustainability and further development and business sustainability of private sector participation within the framework of Market-Based Sanitation development.

Important Notes:

  • The final report must include any work products, a detailed review of tasks undertaken, key findings or observations, and clear recommendations for sustainability and further development of private sector participation within the framework of Market-Based Sanitation development.
  • Recommendations in the final report must:
    • Be broken down by each category of business enterprise as described above;
    • Include comments on the interest and ability of small and medium-scale construction-related businesses to pre-finance a portion of construction costs for household customers, with the remaining amount paid for by the customers through installments.
    • Include comments on the appropriateness of the USAID Enterprise Viability & Sustainability Diagnostic Toolkit (EVST).

After selection process, selected BDS should prepare a detailed Work Plan for activity number (1) through (6) for approval by USAID IUWASH PLUS. This Work Plan should clarify where specific support from USAID IUWASH PLUS may be required, such as for Depth Interview of Households, Sanitation Entrepreneurs or Local Governments.

Important Notes:

BDS candidates must include a detailed activity number (1) through (6) in one Work Plan. Activity number (1) through (3) will be part of the Work Plan phase 1. Activity number (4) through (6) will be part of the Work Plan phase 1. In the work plan, BDS candidates must include the whole plan of activities. Starting with the assessment (phase 1) until the plan for developing training and technical assistance materials, technical assistance, baseline and endline survey, and final reporting (all activity plans in phase 2). This Work Plan also should clarify where specific support from USAID IUWASH PLUS may be required, such as for training programs, technical assistance programs and workshop. BDS candidates can refine the Work Plan phase 2 after the assessment process (Phase 1) with approval from USAID IUWASH PLUS.

 

F. Output:

The output of the LSIC program is as follows:

  1. 5 BDS providers with increased capacity to support private sector participation in the sanitation sector;
  2. At least 5 training modules and its implementation tools developed by each BDSs for supporting sustainable of sanitation entrepreneurs;
  3. At least 50 sanitation entrepreneurs with increased capacity for developing and marketing sanitation products and services;
  4. At least 500 sanitation products (toilets, septic tanks, etc.) sold by sanitation entrepreneurs that receive assistance under this activity;
  5. Documentation of all aspects of the above, including that related to the appropriateness of applying USAID’s Enterprise Viability & Sustainability Diagnostic Toolkit (EVST) in the Indonesian context.

 

G. Contribution to IUWASH PLUS Outcomes

This activity will contribute directly to the following IUWASH PLUS outcomes:

 

Outcome Definition
C1c Number of WASH business development services firms accessible to targeted areas
C1d Number of WASH enterprises with improved WASH product or service offerings as a result of U.S. Government assistance
C1g Number of toilets and septic tank systems sold
C4b Number of knowledge products developed
C4c Number of knowledge events or workshops held
C4d Number of people with increased knowledge / skills / awareness as a result of events/ workshops

 

H. Deliverables and Payment Schedule

Selected organization will be required to produce and submit the following deliverables:

 

Phase Reporting details Due Date Payment
1st phase The letter of agreement was signed and submit the workplan and time schedule Month 1 10%
1st phase Completion and approval of the assessment report, Business Plan, Training and Technical Assistance Plan End of Month 2 50%
1st phase Completion and approval of 2nd phase Work Plan End of Month 3 40%
2nd phase The letter of agreement was signed and submit the workplan and time schedule Month-1 10%
2nd phase Completion of training modules and its implementation tools End of Month-2 20%
2nd phase Completion of training for sanitation entrepreneurs End of Month-4 20%
2nd phase 1st report of technical assistance for  sanitation  entrepreneurs End of Month-6 20%
2nd phase 2nd report of technical assistance for  sanitation  entrepreneurs End of Month-8 20%
2nd phase Completion of technical assistance and final report, covering results of  endline survey and all activities, including documentation, issues encountered, strong recommendations, etc End of Month-10 10%

 

 

I. Posting & Reporting Relationships

The overall program will be managed by each USAID IUWASH PLUS Regional Office under the leadership of Microfinance and Business Enabling Specialist with full support from Business Enabling Specialist from the IUWASH PLUS National Office. However, other relevant components, especially component 2 and 3, will be actively involved in the implementation as well as respective specialists at regional level.

 

The following table summarizes (13) monthly activities, conducted by selected BDS.

Month Selected BDS Activity
1 Implementation of 1st phase : assessment
2 Implementation of 1st phase : assessment
3 Implementation of 1st phase : assessment
4 Implementation of 2nd phase: developing training modules and implementation tools
5 Implementation of 2nd phase: developing training modules and implementation tools
6 Implementation of 2nd phase: developing training modules and implementation tools
7 Implementation of 2nd phase: building business capacity and technical assistance of WE
8 Implementation of 2nd phase: building business capacity and technical assistance of WE
9 Implementation of 2nd phase: building business capacity and technical assistance of WE
10 Implementation of 2nd phase: building business capacity and technical assistance of WE
11 Implementation of 2nd phase: building business capacity and technical assistance of WE
12 Implementation of 2nd phase: building business capacity and technical assistance of WE
13 Implementation of 2nd phase: endline survey

Final reports

 

J. Estimated Budget

Funding for the implementation of this activity will be provided from the LSIC fund. The total budget estimate for this activity is approximately IDR 597.500.000,-. The budget for the 1st activity is around IDR 97.500.000,- and for the 2nd activity is around IDR 500 million. Cost for each mechanism is presented in the table below. The budget will cover all external labor costs, field surveys or assessments, travel costs, developing training modules and implementation tools and other associated costs. USAID IUWASH PLUS will cover the cost of trainings (venues, any participant costs, etc.). The selected grantee will be required to contribute at the minimum of 5%.

 

Activity Description of The Programs Estimated Budget
Phase-1  Assessment of Potential sanitation Entrepreneurs

·       Prepare a detailed Work Plan

·       Assess the local market

·       Assess the business capacity improvement needs

·       Develop report for 1st phase of the program

Estimated IDR 97.5 million
Phase-2 Building Business Capacity of sanitation Entrepreneurs

·       Develop training modules and implementation tools

·       Provide training and technical assistance to sanitation entrepreneurs

·       Develop report for 2nd phase of the program

Estimated IDR 500 million

 

Total IDR 597.500 million

 

 

K. Required Qualifications

BDS candidates must attach a Company Profile showing that they:

  1. Having experience developing curriculum and training materials for the marketing sector, business development, financial management and product sales
  2. Having experience in providing training and technical assistance in the aforementioned sectors to small and micro entrepreneurs
  3. Have a vision and mission to provide technical assistance to entrepreneurs in the WASH sector in the USAID IUWASH PLUS assisted area within the framework of implementing Market Based Sanitation
  4. Have a sustainability plan for developing Market Based Sanitation in Indonesia

To support the foregoing, BDS candidates must have experienced specialists in the training and technical assistance sectors for small and medium entrepreneurs. The specialists are required to attach their respective Curriculum Vitae.

 

L. Selection of Service Provider and Evaluation Criteria

The grantee will be selected based on Full & Open Competition. The grantee have to provide proposal which consist of Technical Proposal (background of the program, experience, tasks to be conducted, methodology, schedule, qualification of personnel) and cost proposal.

The technical proposal will be evaluated based on:

  • Qualification of proposed personnel                                                                                        30 %
  • Experience of organization on training and technical assistance for entrepreneurs     30 %
  • Methodology and work-plan                                                                                                     40 %

 

M. Proposed Mechanism

Proposed mechanism of the activity will be implemented through fixed amount award grant mechanism (for the 1st phase) and simplified grants mechanism (for the 2nd phase).

 

Attachment

RFA-0006-Engaging BDS to Build Capacity Sanitation Entrepreneurs in NSRO

Template Budget SOW Phase 1

 

Available in idIndonesia (Indonesian)