TENDER NOTICE

Tender Title: Hiring a Consultant / Consultancy Firm to Conduct a Market Study and Develop a Business Plan for a Mushroom Production Farm and Processing Unit in Mushishito Marshland

Location:Nyamagabe District, Kibirizi and Uwinkingi Sector, Mushishito Marshland

Client: DUHAMIC-ADRI

Deadline for submission of bids: October 25 ,2024

Bid submission Time: 11:00AM

Bid Opening Time: 11:30AM

Context and background

Brief description of Climate-Smart Agriculture Project

Since July 2024, DUHAMIC-ADRI has partnered with the United Nations High Commissioner for Refugees (UNHCR) through a signed Partnership Framework Agreement (PFA) to implement Phase II of the Climate-Smart Agriculture and Market Development for Enhancing Livelihoods of Refugees and their Host Communities in Rwanda.

 The Climate-Smart Agriculture initiative aims to improve food security and self-reliance for 2,036 beneficiaries (732 refugee and 1,304 host community households, including 1,091 women and 945 men). By 2026, this project will benefit over 7,851 family members through climate-smart agricultural practices and a market development approach.

 Specifically, the partnership focuses on contributing to achieving the following outcomes of the project: Outcome 1: Increased Agricultural Productivity and Outcome 2: Increased Household Income.

Introduction

The Mushishito Marshland presents a unique opportunity for sustainable agricultural development, particularly in mushroom farming. With growing demand for organic, nutrient-rich food, mushroom farming has the potential to contribute to food security, income generation, and rural development. To tap into this opportunity effectively, DUHAMIC-ADRI seeks to hire a consultancy firm/consultant to conduct a comprehensive market study and develop a business plan for establishing a mushroom production farm and processing unit in the Mushishito Marshland.

This initiative will assess market demand, analyse operational feasibility, and provide a clear roadmap for setting up a viable mushroom production and processing enterprise that can meet both local and external market demands.

Study objectives

The objectives of hiring a consultancy firm/consultant are to:

Conduct an in-depth market study to:

• Identify potential markets and demand for mushroom products, both fresh and processed;
• Analyze consumer preferences, market trends, and purchasing behaviors;
• Investigate competitors, market entry strategies, and pricing models;
• Assess the potential for local, regional, and international market penetration.

Develop a detailed business plan to:

• Outline the setup of the mushroom production farm, including infrastructure, equipment, and technology requirements;
• Provide financial projections, including startup costs, revenue models, and cash flow analysis;
• Design a comprehensive operational strategy for the production, processing, and distribution of mushroom products;
• Recommend a supply chain, marketing, and distribution strategy for value-added products;
• Incorporate sustainability and eco-friendly practices into the farm’s operational model.

Rationale

Mushroom farming is recognized as a high-potential agricultural venture, requiring relatively low investment and offering significant returns. Mushrooms are not only a source of essential nutrients, but they also cater to growing trends toward organic, vegetarian, and vegan diets. Establishing a mushroom production farm and processing unit in Mushishito Marshland will:

• Generate Income: Mushroom farming is highly profitable, offering rapid turnover and consistent demand in both local and export markets.
• Create Employment: The establishment of the farm and processing unit will provide employment opportunities for local communities, boosting livelihoods.
• Promote Sustainability: The use of agricultural waste as a growing medium for mushrooms aligns with circular economy principles and contributes to environmentally sustainable practices.

Given these opportunities, a consultancy firm/consultant will provide the necessary expertise to ensure that the project is not only viable but also scalable and sustainable in the long term.

Scope of Work

The proposed market study and business plan development will cover the following components:

• Market Analysis:
  • Demand assessment for fresh mushrooms and mushroom-based processed products (e.g., dried mushrooms, powder, and value-added products).
  • Identification of target customers, including supermarkets, restaurants, food processors, and direct consumers.
  • Analysis of competitors and market share distribution.
  • Pricing and profit margin analysis based on current market trends.
• Production Feasibility:
  • Assessment of land availability and suitability for mushroom farming.
  • Required investments in infrastructure, such as growing sheds, processing facilities, packaging units, and cold storage.
  • Evaluation of labour requirements, mushroom species selection, and production cycles.
  • Analysis of input costs (spawn, substrates, utilities, etc.) and potential revenue streams.
• Financial Projections:
  • Initial capital investment requirements.
  • Operating costs and production capacity.
  • Cash flow analysis and return on investment (ROI).
  • Break-even analysis and financial risk assessment.
• Business Operations:
  • Establishment of efficient production workflows and process optimization.
  • Development of a processing unit for value-added products such as mushroom powder, snacks, and supplements.
  • Identification of distribution channels (retail, wholesale, export).
  • Packaging, branding, and marketing strategies to differentiate the product in the marketplace.

Expected Deliverables:

The consultancy firm/consultant is expected to deliver the following but not limited to:

1. Market Study Report detailing:
   • Market demand analysis, pricing, and competitive landscape.
   • Target market identification and segmentation.
   • Recommendations for market entry strategies.
2. Comprehensive Business Plan that includes:
   • Financial projections (start-up costs, revenue models, profitability).
   • Infrastructure and equipment requirements.
   • Detailed operational workflow and staffing needs.
   • Risk assessment and mitigation strategies.
   • Marketing and distribution strategies.
   • Sustainability and eco-friendly operation recommendations.
3. Implementation Plan with clear timelines and milestones.

Required consultant qualification

This consultancy is open to individual National/ International or a team of expert consultants with special knowledge and research expertise in Market Systems Analysis, value chains and Livelihoods. The Consultant is expected to have the following experience and qualifications:

1. The team composition should have team leader having a minimum of a master’s degree in Rural Development, Nutrition, Food Science, Business Administration
2. Main key staff in construction of food processing plants, and installation of food processing machinery.
3. The provision of comprehensive CVs of team composition is required with their signed commitment to perform this task as the change of key staff will require the prior approval from DUHAMIC-ADRI.
4. The consultant or consultancy firm must have At least 5years of proven experience in market research, feasibility studies, business planning, and Food Systems sector.
5. Previous experience in conducting research and assessments, feasibility studies and developing marketing strategies and business plans.
6. Proficient user of English and Kinyarwanda
7. Strong analytical and report-writing skills with the ability to present complex information clearly and concisely.
8. Excellent communication and stakeholder engagement skills, with a proven ability to work with government bodies, private sector actors, and cooperatives.
9. Ability to work independently, meet tight deadlines, and deliver quality outputs.
10. Familiarity with the Rwandan food systems and understanding of local agricultural markets, including agribusiness SMEs.
11. Knowledge of Food Systems and demand in local and international markets is a plus.
12. Familiarity with sustainable agricultural practices and value chain development for high value crops is an added advantage.

Application Requirements:

1. A detailed cover letter to the Executive Secretary of DUHAMIC-ADRI; expressing the consultant's interest in the assignment and summarizing relevant expertise and experience. The letter should clearly indicate availability to complete the consultancy within the specified timeline.
2. A comprehensive CV detailing education background, work experience, relevant publications or projects completed, and a list of Food Systems-related consultancies previously undertaken.
3. A technical proposal that outlines the consultant’s understanding of the assignment, approach and methodology to be used for conducting the feasibility and market study and developing the business plan.
4. Proposed timeline for completing the feasibility and market study and business plan.
5. Three Certificates of Good completion of previous consultancies with their contracts particularly in Development of Market strategy, Feasibility Studyand Business Planning Development
6. Contact details of three professional references who can attest to the consultant's experience and expertise in similar assignments.
7. A detailed financial proposal that includes consultancy fees, travel costs, and any other anticipated expenses. The financial proposal should be clearly itemized.

The consulting firm/consultant has to submit the following administration documents:

• A cover letter addressed to DUHAMIC-ADRI Executive Secretary
• A Valid RRA Tax Clearance Certificate,
• A Valid RSSB Contribution Clearance Certificate,
• A Good Standing Certificate issued by RDB
• RDB Registration Certificate
• A VAT Registration Certificate
• A Proof of using EBM

Evaluation Criteria

Criteria	Criteria description	Weight/100
Technical Expertise of Consultancy firm or consultant	Proven experience in similar assignments with proof: At least 5 years of proven experience in Conducting market research and assessment, feasibility studies, business planning in Food Systems sector. Three Certificates of Good completion of previous consultancies, particularly in Development of Market strategy, Feasibility Study and Business Planning Development supported by their contracts .as well as three professional references who can attest to the consultant's experience and expertise in similar assignments. Administrative documents	30
Methodology (max 15 pages)	Soundness of the proposed approach and methodology: Proposes a reasonable, detailed, clear work plan Methodology describing how the consultancy firm will complete the needed work related to this study. Demonstrates good report writing and communication skills as well as ability to compose clear, compelling written documents in English.	25
Team Composition	Qualification and experience (CVs) and degrees of the proposed Key personnel (see TOR) as well as their signed availability commitment note to perform the assigned tasks	15
Financial Proposal	Cost Competitiveness, Clarity and Detail of Pricing Structure, and Compliance with Financial Guidelines in relation to the aforementioned qualification requirements and the scope of the assignment.	30
TOTAL		100

Timeline

The consultancy is expected to complete the assignment within a timeframe of 1 month (30 calendar days) from the start date of the contract.

The project will be divided into two phases:

• Phase 1: Market Study (15 days):
  Conduct detailed research, including interviews with stakeholders, market analysis, and competitive benchmarking.
• Phase 2: Business Plan Development (15 days):
  Compile the findings of the market study and develop a complete business plan, including financial projections, operational guidelines, and risk management strategies.

Monitoring and evaluation

Mechanisms for monitoring progress and evaluating the consultant's performance will be established, ensuring adherence to timelines and quality standards. Any deviations from the work plan or challenges encountered will be addressed in a timely manner.

The consultant's performance will be evaluated based on the quality and timeliness of deliverables, adherence to the proposed methodology, and effectiveness in meeting the project objectives. Feedback from project stakeholders will also be considered in the evaluation process.

Ethical considerations

The consultant is expected to adhere to ethical principles and guidelines throughout the duration of the consultancy, ensuring the confidentiality, integrity, and respect of all stakeholders involved.

Confidentiality and data protection measures

All data collected during the consultancy will be handled with strict confidentiality and used solely for the purposes of the study. Any sensitive information obtained will be anonymized and stored securely to prevent unauthorized access.

Safeguarding and Anti-Corruption clauses

The Consultant will be responsible to observe and respect the DUHAMIC-ADRI code of conduct, ethical, protection and safeguarding policies and will hire and retreat with dignity, transparency and equity all staff and team members in different levels including business mentors and coaches.

DUHAMIC-ADRI treat all people with dignity and respect and takes a zero tolerance on harassment, harm, sexual-abuse, exploitation, child labor, and human trafficking and any other conduct that is discriminatory or disrespectful to others. DUHAMIC-ADRI don’t tolerate any form of corruption.

During the execution of this contract, the Consultant and its staff will be bounded by DUHAMIC-ADRI Values and approved polices where among them are the following:

• DUHAMIC-ADRI Safeguarding and Child protection policy
• DUHAMIC-ADRI Prevention of Sexual Harassment, Exploitation and Abuse at work policy.
• DUHAMIC-ADRI Gender and non-discrimination policy.

Moreover, the Consultant has to ensure the regular payment of its staff to avoid complaints and the negative side effect for DUHAMIC-ADRI image and its partners. DUHAMIC-ADRI will have rights and responsibilities to monitor and crosscheck if the terms and conditions for the consultancy team members are followed and mutually respected.

At any time DUHAMIC-ADRI has the rights to check whether the organization/company complies with the safeguarding and protection procedures and take an appropriate action.

Communication protocols

Regular communication between the consultant and the project team will be maintained through email, phone calls, and virtual meetings as necessary. Any changes to the work plan or unforeseen issues should be communicated promptly to ensure timely resolution.

Coordination with project stakeholders

The consultant will coordinate closely with project stakeholders, including government agencies, local communities, and partner organizations, to ensure their active participation and buy-in throughout the consultancy process.

Submission of applications

Interested firms/consultants with relevant experiences and who meet the above criteria should submit their technical proposal with their proposed methodology of implementing the assignment, experiences and three referees, work plan, and CVs of the Technical Team; a financial proposal detailing the professional fees, reimbursable, and VAT;

Submission Requirements:

• Bidders are required to submit their offers in one main sealed envelope. This main envelope must contain two separate sealed envelopes:
  1. Envelope A: Technical Proposal
  2. Envelope B: Financial Proposal

Submission deadline is October 25, 2024 at DUHAMIC-ADRI Head Office located in Niboye Sector-Kicukiro District at 11:00AM

Opening of Proposals:

Technical Proposal Opening:

• The technical proposals (Envelope A) will be opened first in a public session on October 25, 2024 at DUHAMIC-ADRI Office 11:30AM
• During this session, only the technical proposals will be evaluated based on the criteria outlined in the bid documents and the financial proposal will remain sealed and returned in the bid submission box

Financial Proposal Opening:

• Only bidders whose technical proposals meet the required standards and are shortlisted will be invited to the opening of the financial proposals (Envelope B).
• The financial proposals of the shortlisted bidders will be opened in a separate public session. The date and time of the financial proposal opening will be communicated to the shortlisted bidders.
• Bidders not shortlisted in the technical evaluation will not have their financial proposals opened, and their financial proposals will be returned unopened.

Confidentiality:

• All information provided by bidders will be treated as confidential. The procurement process will be conducted in a transparent manner to ensure fairness and competitiveness.

Done at Kigali, October 11,2024

MUHIGIRWA Benjamin

Executive Secretary