Feasibility Study Consulting Services; ACDI/VOCA

RFQ #029 Feasibility Study Consulting Services; ACDI/VOCA

Message title: Job Vacancy/Procurement Placement – Procurement Placement

Organization/Project: ACDI/VOCA (MDRD Project) 

Title of your vacancy/procurement:  Feasibility Study Consulting Services

Closing date: August 29, 2024

Contact information: procurementtajikistan@acdivoca-tj.org

External link:  

Short description:

The Tajikistan Market Driven Rural Development (MDRD) is a five-year, $19M project funded by the USAID. The program will increase investment in the agriculture sector, improve value chain productivity, increase access to profitable markets for agribusinesses and integrate climate smart approaches into the agriculture system. 

The main tasks are:

1. To ensure the technical feasibility of the project, the consultant must carry out the following tasks:

- Review the project concept and estimated project cost to identify additional work required to achieve the expansion's full production potential. The consultant should estimate the related costs, including labor, raw material, capital investment for project equipment, and general overhead.

- Assess the effectiveness and suitability of the existing equipment. The consultant should provide proposals on additional equipment required for the project, including the farming project equipment. 

- If necessary, review options for phasing the project to keep the initial capital within limits proposed by the applicant. The consultant should detail the estimated capital for each phase.

2. To assess the production management, the consultant should:

- Determine whether the output levels projected in the proposal are reasonable and attainable within the proposed timeline.

- Assess the quality of the applicant's products relative to competing products and the possibility of developing new products, especially in the retail segment of the business.

- Review the state and adequacy of the existing equipment and processes.

- Develop an appropriate production layout and operational plan if required.

- Review the organizational and management structure of the applicant with emphasis on the selection and participation process. The consultant should also review key characters/personalities/entities and responsibility lines/management hierarchy.

- Comment on existing quality control and hygiene/environmental practices in place, if any, for the existing operations and the new production unit. The consultant should indicate necessary improvements to be considered.

3. To assess the market and develop the marketing strategic plan, the consultant should:

- Review the export and domestic market and make necessary recommendations for meeting customer requirements with special attention to the following:

  - Assess current and projected external markets.

  - Assess present marketing and pricing arrangements, marketing costs/fees, principal customers, competitors, and the marketability of the applicant's products, considering the quality and volumes.

  - Estimate production cost and marketing cost (e.g., distribution costs, sales commission, packaging cost, etc.).

4. For financial analyses, the consultant should review/develop/optimize all financial aspects of the project with a view to assuring project viability. In particular, the consultant should develop/present the following:

- Review the applicant's financial performance over the past 3-5 years.

- Provide financial indices, including a forecast and evaluation of the applicant's future financial situation.

- Provide liquidity ratios, such as the current ratio, debt service coverage, and solvency ratio (long-term debt/equity).

- Provide profitability ratios, such as profit margin (gross profit/sales) and net profit/turnover ratio.

- Provide financial return internal (financial) rate of return after tax, sensitivity analyses, risks and uncertainty, influence of key variables on return, and return to investors.

- Establish a base case for the future operation, including estimates for required working capital, raw material utilization and yield ratios, technical overhead expenses including operating costs, and financial projections for the project.