Request for Proposal (RFP) for the Consultancy Service: Develop "Technical Operating Procedures for Grain Warehouse"

Request for Proposal (RFP) for the Consultancy Service: Develop "Technical Operating Procedures for Grain Warehouse"

1. PROJECT BACKGROUND

Over the course of its first five years of operation (July 2017 through July 2022), the USAID’s Feed the Future Nepal Knowledge-based Integrated Sustainable Agriculture (KISAN II) project worked to increase resilience, inclusiveness, and sustainability of income growth through agriculture development by focusing on five value chains: vegetables, rice, maize, lentils, and goats. KISAN II uses a private sector-led approach to identify and address constraints within Nepal’s key market systems, which contributes to the food security objectives of the Government of Nepal’s Agricultural Development Strategy and the U.S. Government’s Feed the Future Initiative. The project coordinates closely with the private sector as well as Nepal’s federal, provincial, and local governments.  

Under a two-year supplemental scope (extension), KISAN II is currently operating in eight districts in Lumbini, Karnali, and Sudurpaschim Provinces to help bring transformational change to the rice and maize sub-sectors and to connect migrant returnees and others heavily affected by COVID-19 with agriculture-related opportunities. On September 27, 2022, the project initiated additional USAID’s supplementary scope of work (SOW) to help address localized impacts stemming from Russia’s invasion of Ukraine. These targeted SOWs build on the success, linkages, and lessons learned from the project’s five-year base period, which helped boost the resilience of private sector partners and their farming communities to cope with current and future shocks.

2. INTRODUCTION

Cereal grains are important for food and nutrition security, economic growth, and livelihood improvement in developing countries including Nepal. Nepal imports a huge volume of agricultural products mainly rice (80% fine rice) and maize for feed purposes that has led to an increase in the trade deficit annually, which could be substituted, to some extent, through domestic production. Although there is tremendous potential of producing good quality fine rice in the terai and industrial maize in the terai and hill areas, the annual production has not been significantly increased. Due to inadequate warehouse facilities, farmers are forced to sell out their produce during the peak harvesting season at cheaper price rates and purchase them in lean periods with higher rates. One of the main causes is underdeveloped warehouse facilities for storing these grains. At present, the public-sector Food Management and Trading Company Ltd (FMTC), cooperatives, and private sector (mainly rice millers) operate warehouses to store limited quantity of grains in without attention to technical standardization. Consequently, grains cannot be stored safely for long. This situation is discouraging for farmers producing cereal grains. Thus, establishing warehousing for grains is a strategic necessity across cereal value chains.

Ensuring proper and adequate warehouse management for grains to improve food security and food sovereignty is a major bottleneck as identified by GON. Given this fact the GON (federal, provincial and local) has prioritized establishing warehouse facilities to contribute stabilizing the price fluctuation of grains including rice and maize, minimizing post-harvest losses, implementing minimum support price (MSP), reducing imports, and enhancing food security. Prioritizing this issue, the MOALD has allocated programs and an associated budget to establish warehouses through local governments in its FY 2022/23 budget. Provincial government, particularly the Ministry of Land Management, Agriculture and Cooperatives of Sudurpaschim province allocated program budget constructing warehouses for grains through private sector millers in the current fiscal year 2022/23. Similarly, local government (municipalities) has priority programs for grains warehouses at the local levels.

To address the issue of warehousing of grains, KISAN II intends to develop "Technical Operating Procedures for Grain Warehouse" to be applied by public, cooperatives, and private sector actors. To this end, KISAN II announces this Terms of Reference (TOR). Procedures should adhere to the "Goods Exchange Market Related Act 2074 " with a focus on fine rice and industrial maize.

3. METHODOLOGY

The assignment will be conducted in-person following COVID-19 health protocols and virtually, as needed. The consultant will develop a questionnaire/checklist for stakeholder interviews/discussions with major private sector actors (related to rice and maize) including millers, aggregators, traders (including Nepal Warehouse Company), agro-entrepreneurs, cooperatives, commodity association (for example, Association of Nepalese Rice, Oil, and Pulses Industry- ANROPI), and government officers (federal, provincial and local level). Consultant will review relevant literature (including plans, policies and reports) and conduct a series of stakeholder interviews with major stakeholders and market players, carry out focus group discussion (FGD), and develop a warehouse operating procedure from technical viewpoints. As these operating procedures will be piloted in Sudurpaschim province, the consultant will conduct this assessment in close collaboration with the Ministry of Land Management, Agriculture and Cooperatives (MOLMAC) of Sudurpaschim Province, the Ministry of Agriculture and Livestock Development (MOALD), municipalities, and private sector actors. The operating procedures will be approved and adopted by MOLMAC Sudurpaschim Province and replicated to other provinces, local levels, cooperatives, and private sectors.

4. SCOPE OF WORK

4.1 Assess warehouses operating through public, private, and cooperative sectors, identify major issues and challenges on warehousing, post-harvest losses during grain storage, government incentives, policy support for warehousing, import tariffs for grains and warehouse equipment, MSP, financing, insurance, etc.

4.2 Develop operating procedures considering the following technical viewpoints, but not limited to. 

• The capacity of warehousing by different categories (small, medium and large for Terai region and appropriate model for Hill region), and design for each category of warehouse. 
• Flooring/height of the warehouse from the ground, roof and floor construction, solar radiation, orientation (facing east, west, north, or south), and location of warehouse access to road.
• Size of land requirement, open space for vehicle movement (loading and unloading), and parking facility, use of weighing machines, weighbridge office, hygienic and sanitary conditions, office room, storeroom, guard room, isolation shades, lavatory block, laboratory room, PLC control panel room, forklift for load and unload, drinking water, fire-fighting arrangements.
• Technical standards to keep the grain in appropriate condition, such as temperature and humidity requirement, moisture percentage of grains, air circulation, and spacing (between stacks and walls, bag-bag, staking height).
• Rat proofing technology, ventilation system, provision of doors, windows, lighting system, and appropriate application of chemical/ biological measures to protect grains.

4.3 Develop technical warehouse operating procedures for grains warehouse incorporating 4.1 and 4.2 as per the standard format of the government system.

5. CONSULTANTS DESCRIPTION AND QUALIFICATIONS

There will be two Consultants: (i) the Lead Consultant with estimated 25 days Level of Effort (LOE) will undertake this assessment with due identification of systemic issues/constraints encountered in warehousing, and development of warehouse operating procedures from a technical viewpoint applicable for public, private, and cooperative sectors. The task location includes desk work and field visit in Sudurpaschim and Lumbini Provinces and any one other place where modern warehouse-related information can be collected; (ii) the Associate Consultant will be allocated for short period (10 days) and mainly responsible to assist the Lead Consultant, particularly collecting information, drafting reports, and as per instructed by the Lead Consultant.

• The Lead Consultant should have master’s level degree (PhD preferred) in agriculture engineering, post-harvest management, agribusiness, agriculture, or related field, with in-depth sector knowledge, along with 15+ years’ experience working in post-harvest management, agricultural policies, and evidence of relevant publications. Experience in warehouse management is preferred. 
• Associate Consultant should have at least bachelor's degree (Master’s degree preferred) in agriculture engineering, post-harvest management, agribusiness, agriculture, or related field, and necessary experience required for the assessment.
• Consultants should have proven experience of conducting assessments, developing agriculture policy, and operating procedure-related assessment or study.
• Consultants should have excellent English and Nepali language ability on writing report/policy paper.

6. DELIVERABLES

1. Submit inception report consisting of assessment methodology including selection of respondents, questionnaire/checklist for stakeholder interview/discussion, approach and working modality, milestone setting of the activities to KISAN II for getting feedback and suggestions by three weeks of agreement.
2. Conduct assessment and submit a report on "Technical Operating Procedures for Grains Warehouse " (maximum 20 pages including annexes) in both English and Nepali by 2 months upon submission of inception report.
3. Present the report to representatives of MOLMAC, MOALD, municipality, and KISAN II, finalize the report incorporating feedback and submit the final report.

7. AGREEMENT DURATION

The Agreement duration will be of maximum three months period.

8. SELECTION CRITERIA AND WEIGHTAGE

The selection will be on the following weightage value for technical and financial proposal.

9. APPLICATION PROCEDURE

Agency should submit:

• Technical Proposal (maximum 10 pages)
• Financial Proposal: Please refer Annex 1: Budget/Cost estimate format 
• CV of Lead Consultant and Associate Consultant
• Agency registration documents with renewal, if applicable
• VAT registration certificate
• Latest audit report and tax clearance certificate 
• Any other relevant document/s

Disclaimer:

Issuance of this notice does not obligate Winrock International to award a Consultancy Service, nor will Winrock International pay any costs associated with the preparation or submission of application. Furthermore, Winrock International reserves the right to reject any and all applications, if such action is considered to be in the best interest of Winrock International. The consultancy service is contingent upon donor approval.

Annex I: Budget/Cost Estimate Format