Request for Proposals: Pro Poor Subsidy Design and Rural Feasibility Study
Summary
The United Nations Foundation’s Clean Cooking Alliance is accepting proposals from firms experienced in subsidy design and feasibility studies to complete a project for its Venture Catalyst portfolio company, Circle Gas. The project will include supporting Circle Gas to develop a strategy to design, structure, and capitalize a pro- poor subsidy so that the enterprise can extend its clean cooking offering to the urban poor. The project will also include a feasibility study on expansion into rural areas and the associated impact on the financial sustainability of the enterprise.
Background of Organizations
The Clean Cooking Alliance works with a global network of partners to build an inclusive industry that makes clean cooking accessible to the 2.4 billion people who live each day without it. Established in 2010, the Alliance is driving consumer demand, mobilizing investment to build a pipeline of scalable businesses, and fostering an enabling environment that allows the sector to thrive. Clean cooking transforms lives by improving health, protecting the climate and the environment, empowering women, and helping families save time and money.
CCA’s Venture Catalyst aims to provide a broad range of specialized support to selected companies, solidifying there commercial viability, enhancing their investment-readiness, and facilitation access to growth capital.
Circle Gas supplies LPG cooking gas to customers’ homes in Nairobi, Dar es Salaam and Zanzibar using an innovative digital system enabled by a proprietary smart meter. Customers top up their gas credit from their phone, meaning they can just pay for the gas they need for each meal and not the entire cylinder of gas at once. Circle Gas strives to make clean cooking both affordable and convenient for all. This work will contribute meaningfully to UN Sustainable Development Goals 1, 3, 5, 7, 9, 11 and 13.
Objective
The objectives of this assignment are as follows:
- Undertake desk research and case study development on existing designs, subsidy design options and guidance, and key informant interviews pertaining to the clean cooking sector and LPG.
- To develop a strategy to design, structure, and capitalize a pro- poor subsidy so that Circle Gas can extend its clean cooking offering to the urban poor
- To conduct a feasibility study on expansion into rural areas and the associated impact on the financial sustainability
- Develop a public knowledge product on designing pro-poor subsidies.
Scope of Work and Deliverables
Activity 1: Undertaking research to inform design of a pro-poor subsidy for the LPG pay-as-you-go sector
- Conduct desk research and case study development on existing designs, subsidy design options and guidance, and key informant interviews. The research should highlight lessons learned on exit strategies and how lessons learned from existing subsidies, even from adjacent sectors, can be applied to the cookstoves context. The research should also consider what role subsidies will play in a market context where carbon credits are also available.
- Deliverable:
- A public knowledge product on designing pro-poor subsidies
Activity 2: Preparing the design and implementation plan for a pro-poor subsidy for Circle Gas
- Prepare subsidy design options and guidance tailored to Circle Gas. This should include subsidy prototypes that can be used to test key hypotheses with customers, as well as a report and action plan. The research should also outline a subsidy removal process and consider subsidization through carbon.
- Deliverable:
- An internal report on the design, structure, and capitalization of a pro-poor subsidy for LPG and action plan for implementation that can be utilized to launch a pilot subsidy scheme upon completion of this project.
Activity 3: Conducting a feasibility study on rural expansion
- Complete an economic analysis on rural supply chains, consumer affordability, and unit economics for a viable rural servicing model, key informant interviews, and report development and action plan
- Deliverable:
- Report on the feasibility of rural expansion for LPG networks and associated action plan
Project Period of Performance
This assignment will be performed between August 2022 – December 2022.
Technical Requirements
Firms should have the following experience:
- Understanding of the clean cooking sector and its associated business models, with knowledge of LPG business models in particular
- Experience conducting research in the clean cooking and/or energy sector
- Understanding of subsidy schemes in the cookstoves space and adjacent sectors as well as experience in designing and implementing subsidy schemes; experience in East Africa and Kenya highly desirable
- Previous experience conducting feasibility studies, computing unit economics, and performing other economic analyses
- Existing relationships with stakeholders, including investors, development partners, foundations, etc engaged or interested in the clean cooking sector that can inform the desk research and design
- Experience authoring innovative and strategic reports for the sustainable development sector
Selection Timeline
Date | Deliverable |
07/25/2022 | Proposals due |
07/29/2022 | Proposal review and scoring |
08/01/2022 | Consultant(s) selected and notified via email |
08/22/2022 | Kickoff meeting with selected Consultant(s) |
Budget
A detailed budget in US Dollars must be submitted with the proposal. Budget should include both pre-tax and net of tax values. The budget should include direct costs (Personnel, Fringe Benefits, Travel, Sub-Agreements, Equipment, Supplies, etc.), as well as indirect costs (overhead). For indirect costs, please indicate a list of expenses covered by the indirect rate. For all direct cost, please include assumptions that were made to arrive at line item costs (e.g. 2 trips @ $1,500/trip = $3,000 or 20 staff hours @ $40/hour = $800).
If a bid has a mathematical discrepancy, the Alliance may correct the discrepancy and notify the Consultant of the adjustment. In such circumstances, the Consultant may choose to withdraw their bid.
The budget should not exceed 50,000 USD.
Evaluation process
The Clean Cooking Alliance will review all written proposals and may request a phone or in-person interview and/or updated submission to address questions or provide clarification. CCA will use the following criteria in our evaluation.
Evaluation criteria | Weighting | Score (1-5) |
Approach: e.g the analytical framework and methodology answering the project’s key questions and deliverables | 10% | |
Subject matter expertise: e.g experience working with emerging markets and the field of global development | 25% | |
Project management: e.g achievable action plan that will deliver the project on time and on budget | 10% | |
Capabilities and experience: e.g demonstrated firm experience with similar projects | 25% | |
Value: e.g the proposed pricing is within budget | 10% | |
Value for money: the proposed pricing demonstrates a competitive price and good value for the money | 20% |
Intent and disclaimer
This RFP is made with the intent to identify a Consultant to deliver results as described in this RFP. UNF/the Clean Cooking Alliance will rely on the Consultant’s representations to be truthful and as described. The Clean Cooking Alliance assumes it can be confident in the Consultant’s ability to deliver the product(s) and/or service(s) proposed in response to this RFP.
If the Clean Cooking Alliance amends the RFP, copies of any such amendments will be sent to all respondents to the proposal.
Proposal Guidelines and Requirements
- This RFP is open to multiple partners and is a competitive process.
- Proposals received after 5pm ET on July 25, 2022 will not be considered.
- The price provided should be in US dollars, and should contain both pre-tax and net of tax values. If the process excludes certain fees or charges, the applicant must provide a detailed list of excluded fees with a complete explanation of the nature of those fees.
- CCA prefers a single point of contact who manages deliverables. If the execution of work to be performed by the Consultant requires the hiring of sub-contractors, the Consultant must clearly state this in the proposal. Sub-contractors must be identified and the work they will perform must be defined. Subcontractors are subject to vetting and approval of UNF/CCA.
- CCA will not refuse a proposal based upon the use of subcontractors; however, we retain the right to refuse the sub-contractors you have selected.
- Provisions of this RFP and the contents of the successful responses are considered available for inclusion in final contractual obligations.
Format for Proposals
Proposals must include applicant signature as well as a signed declaration form. Proposals must include the full legal name of applicant, as well as legal formation and ownership structure (e.g. incorporation certification, tax status and ID, etc.).
Contracting and Compliance
CCA will negotiate contract terms upon selection. A copy of the contract terms and conditions will be provided upon selection. All contracts are subject to review by the UN Foundation’s Business Services and Budget Reporting team. The project will start upon the complete execution of the contract. The contract will outline terms and conditions, scope, budget, and applicable flow down terms. Selected recipient(s) must comply with
CCA, United Nations Foundation, and funder compliance requirements. The selected recipient(s) must also undergo detailed legal, financial, and commercial due diligence.
Release
The Consultant understands that the Clean Cooking Alliance has chosen to solicit an RFP for consulting services, and that the Consultant’s response does not guarantee that the Clean Cooking Alliance will enter into a new contract with the Consultant or continue any current contract(s) with the Consultant.
The Consultant agrees that Clean Cooking Alliance may, at its sole discretion:
- Amend or cancel the RFP, in whole or in part, at any time
- Extend the deadline for submitting responses
- Determine whether a response does or does not substantially comply with the requirements of the RFP
- Waive any minor irregularity, informality or nonconformance with the provisions or procedures of the RFP
- Negotiate with all Consultants UNF deems acceptable
- Issue multiple awards
- Photocopy the responses for evaluation/review
This RFP is not an offer to contract. The Clean Cooking Alliance assumes no responsibility for Consultant’s cost to respond to this RFP. All responses become the property of the Clean Cooking Alliance
The Consultant, by submitting a response to this RFP, waives all right to protest or seek any legal remedies whatsoever regarding any aspect of this RFP.
The Consultant represents that it has responded to the RFP with complete honesty and accuracy. If facts provided in the Consultant’s response change, the Consultant agrees to supplement its response in writing with any deletions, additions, or changes within ten (10) days of the changes. The Consultant will do this, as necessary, throughout the selection process.
The Consultant understands it may receive proprietary and confidential information from the Clean Cooking Alliance during the RFP process (“Confidential Information”). The Consultant and CCA agree to not use Confidential Information for any purpose other than the Consultant’s participation in the RFP process, and to not reveal Confidential Information directly or indirectly to any other person, entity, or organization without the prior written consent of the other party. The Consultant and CCA further agree to exercise all reasonable precautions to maintain the proprietary and confidential nature of Confidential Information where it can best demonstrate its value and capacity to delivery ecosystem-wide, meaningful value.
Grounds for Exclusion
Material misrepresentations, including omissions, may disqualify the Consultant from a contract award.
Submissions will be rejected in the Clean Cooking Alliance’s sole discretion if it finds that the Consultant has engaged in any illegal or corrupt practices in connection with the award.
The Consultant will be excluded from participation for the reasons below. By submitting a proposal in response to the RFP, the Consultant confirms that none of the below circumstances apply:
- The Consultant is bankrupt or being wound up, is having their affairs administered by the courts, has entered into an arrangement with creditors, has suspended business activities, is subject of proceedings concerning those matters, or is in any analogous situation arising from a similar procedure provided for in national legislation or regulations.
- The Consultant or persons having powers of representation, decision-making or control over them have been convicted of an offence concerning their professional conduct by a final judgment.
- The Consultant has been found guilty of grave professional misconduct; proven by any means which CCA can justify.
- The Consultant has not fulfilled obligations relating to the payment of social security contributions or taxes in accordance with the legal provisions of the country in which they are established, or within the United States of America, or those of the country where the contract is to be performed.
- The Consultant or persons having powers of representation, decision-making or control over them have been convicted for fraud, corruption, involvement in a criminal organization or money laundering by a final judgment.
- The Consultant makes use of child labor or forced labor and/or practice discrimination, and/or do not respect the right to freedom of association and the right to organize and engage in collective bargaining pursuant to the core conventions of the International Labour Organization (ILO).
Principal Point of Contact
Lindsay Umalla is the primary point of contact for this assignment. Please reach out to investment@cleancooking.org with any questions.
Submission details
Please submit any questions and/or proposal materials related to the Request for Proposals to investment@cleancooking.org with the subject line “Proposals for Pro Poor Subsidies.”
The deadline for submission is July 25, 2022, at 5pm ET.