RFQ-TUR-19042022 Value-Chain Analysis of Wood Furniture Making in Hatay and Apparel Manufacturing in Kilis, and Şanlıurfa

BACKGROUND

The Danish Refugee Council’s (DRC) vision for economic recovery programming is that all conflict- and displacement-affected households are able to achieve economic well-being, self-reliance, and resilience to shocks as part of finding a durable solution to displacement. In Turkey, DRC supports the economic recovery and livelihoods of Syrians under Temporary Protection (SuTP) and other vulnerable refugees through dignified and safe income generation activities, greater employability and increased access to inclusive economic growth.

DRC Turkey has a strong experience and established expertise in facilitating sustainable access to earning opportunities for displacement-affected populations at the individual level. Recognizing the need to expand its programming to develop innovative and new program models around systemic approaches and oriented towards more development programming, DRC Turkey is aiming to expand its interventions to strengthening market systems for long-term, sustainable change. Functioning market systems is critical to livelihoods autonomy and building resilience of refugees and vulnerable host populations. Hence, it is increasingly important for DRC Turkey to consider critical systems of market actors that can be used, supported or developed so as to provide holistic, people-centred interventions that promote self-reliance for displacement-affected populations.

One way of doing this is for DRC to facilitate the inclusion of refugees and local host communities into local value chains and sectors through interventions that improve the target groups’ skills and capacities (‘push’ factors) as well as develop and improve the functioning of local value chains and the market system (‘pull factors’). By building on its current experience in the use and support of markets, and enhancing further its capacity to affect significant change in critical market systems, DRC aims to pilot at least one innovative programme using the market systems approach in Turkey. To inform the design, DRC through a consultancy service will conduct an in-depth Value-Chain Analysis (VCA) of the following sectors:

1) Wood Furniture Manufacturing Industry in Hatay

2) Apparel Manufacturing Industry in Kilis and Şanlıurfa

VCA refers to an approach which takes a product, service or commodity as the basis for analysis. Understanding value chains will help DRC to identify those chains which are able to generate growth, job creation and poverty reduction. It also aims to identify constraints to and opportunities for increasing value chain performance, so that interventions can be designed and implemented to address constraints and improve outcomes.

This particular VCA project will identify potential value chain development of the two selected sectors with a specific focus on job creation for Syrian refugees and affected host populations in Turkey. The VCA will also examine the environmental impacts in each value chain that can contribute to sustainable and socially just economic recovery and green transition.

DRC Turkey is looking for a service provider (preferably a consultancy/research firm based in Turkey) to lead the desk review, data collection, value-chain mapping and analysis and report writing.

CONSULTANCY OBJECTIVES

The objective of this consultancy is to conduct a value chain analysis of the selected sectors mentioned above to identify which specific market in the value chain can be developed and or supported to increase opportunities for Syrian refugees for income generation, enhance global green transition, and engage private sectors using the market systems approach.

TENDER SPECIFICATIONS

This tender consists of two LOTS. Bidders can apply for one or both lots. Bidders should submit technical and financial proposal for each lot. Evaluation will be done separately for each lot.

1) LOT 1: Wood Furniture Manufacturing Industry in Hatay

2) LOT 2: Apparel/Textile Manufacturing Industry in Kilis and Şanlıurfa

GEOGRAPHICAL LOCATIONS

Hatay, Kilis, Şanlıurfa**

SCOPE OF WORK

For each lot listed above, the service provider is expected to deliver the following:

I) MSA/Kick Off session – the service provider is expected to attend a kick off meeting and a market systems approach presentation (maximum half day) which will be conducted by DRC.

II) Inception Report – After attending a kick-off meeting with DRC, the service provider will submit to DRC a 10-15 pages inception report, updating the submitted technical proposal based on the agreed programme parameters and timeframe during the kick-off meeting including a work plan with key deadlines. The contractor needs to specify their proposed approach, and methodology incorporating the principles of market systems approach.

II) Desk Review –The desk review phase is expected to include a mixed-use of secondary sources and key informant interviews (KII).

III) Mapping out the Value-Chain – Design a basic mapping of the value chain. A value chain map is a visual map showing the following:

1) The process by which a product or service goes through several stages until it reaches the end customer (such as production, processing and marketing).

2) Key market actors involved from the start of the chain to the end market, for example businesses involved in the core value chain transactions (such as importers, wholesalers, retailers, manufacturers etc.), and organisations that provide supporting services and set the rules (government, banks, associations etc.)

3) Different market channels through which products and services reach the final customer and the end market.

IV) Data Collection – Conduct data collection using the following:

a) KII: Include key actors related to the value chain with potential interest to be interviewed. This can be actors related to enterprises, Chamber of Commerce, transportation companies, financial service providers, processors, producers, wholesalers, consumers, retailers, governmental bodies etc.

b) Focus Group Discussions: Conduct FGDs when information from specific groups needs to be collected. For example, workers from specific parts of the value chain, consumers etc. Consider different group of age, gender and profiles to get as much information as possible.

All tools to be used in data collection must be approved by DRC prior to use.

We prefer a service provider who can conduct data collection in the project locations instead of remote work.

V) Value Chain Analysis

The data collected should inform the analysis of the sector and its markets in the value chain.

The consultant should analyze each market within the chain following the four dimensions and criteria stated in the Annex A.1 ToR.

VI) Presentation of Recommendations

The consultant must present the recommendations through a written report to DRC based on the findings of the analysis. Proposed recommendations must be initially discussed with the DRC’s Economic Recovery Team before finalizing. Recommendations should focus on the following:

1) Developing a systemic change vision for the sector. The vision must be aligned with the broader strategy of DRC.

2) Explaining how to take a systems approach to value chain development with the objective of supporting and creating more and better jobs for refugees and vulnerable host populations. (important to stress how DRC can use Market Systems Approach in their interventions).

3) Proposing/Designing innovative systemic-level interventions or business models that can lead to systemic change. The proposed interventions or business models should:

a) identify potential innovative employment and entrepreneurship interventions (wage and self-employment) for refugees and vulnerable host populations (given their needs and capacities) in the sector in the target locations (we are interested in innovative solutions rather than typical traditional livelihoods interventions).

b) outline any gaps that must be filled for refugees/host populations to sustainably gain employment through the value chain, and how the value chain can be developed.

c) identify potential of certain chains to promote the inclusion of and cohesion between refugees and host populations.

d) determine how to create competitive advantages for the targeted sectors in the context of local and regional trends, having in mind the context of the refugee/host populations.

e) improve a value chain’s environmental performance (must be linked to increasing incomes and creating (green) jobs by supporting adoption of greener and more climate resilient practices and inputs and designing interventions for circularity[1]).

f) shortlist possible initial pilot partner(s) for each chain. Partners can come from the public, private or civil society sectors and are the ‘early adopters’ who DRC can work with to test whether the intervention is likely to be feasible, and lead to benefits for target groups.

VII) Stakeholder’s Validation Workshop

The workshop aims to increase ownership among key sectoral stakeholders (market actors) over the findings and recommendations, correct oversights or errors in the findings, validate the initial identification of constraints or intervention areas and contributes to consensus building. The workshop should include presentation of the VCA findings and recommendations (proposed sector vision, interventions/business models). The workshop may be face to face or online for a half day duration.

VIII) Final Consolidated Report

The consultant must produce a report with the main findings and recommendations.

The Service Provider must incorporate the inputs from the validation workshop. The report must be submitted in English. The report must be structured according to the following guidelines:

 Cover Page

 List of Acronyms

 List of Figures

 Table of Contents

 Executive Summary

 Introduction/Background

 Methodology/Approaches and tools used

 Key Findings

 Conclusion and Recommendations

 Annexes

The consultant must also submit as Annex to the final report the database of contact details of all the stakeholders who participated in the data collection and the validation workshop.

KEY DELIVERABLES

1. 10-15 pages Inception Report

2. Qualitative and quantitative data collection tools reviewed and approved by DRC’ Programme and MEL Team.

3. Value Chain map (visual)

4. Draft Summary of the Value Chain Analysis report & Recommendations report

5. Validation workshop (including agenda, presentations and minutes)

6. Final consolidated report (with stakeholders’ database)

*DRC will have a maximum of three rounds of reviews for all deliverables before finalization.

[1] The concept of the ‘circular economy’ is about minimizing waste and maximizing the use of natural resources. It is an alternative to the traditional, linear economy, in which we extract great quantities of natural resources to make products that we often just use once only to discard them to a landfill.

VI) Presentation of Recommendations

The consultant must present the recommendations through a written report to DRC based on the findings of the analysis. Proposed recommendations must be initially discussed with the DRC’s Economic Recovery Team before finalizing. Recommendations should focus on the following:

1) Developing a systemic change vision for the sector. The vision must be aligned with the broader strategy of DRC.

2) Explaining how to take a systems approach to value chain development with the objective of supporting and creating more and better jobs for refugees and vulnerable host populations. (important to stress how DRC can use Market Systems Approach in their interventions).

3) Proposing/Designing innovative systemic-level interventions or business models that can lead to systemic change. The proposed interventions or business models should:

a) identify potential innovative employment and entrepreneurship interventions (wage and self-employment) for refugees and vulnerable host populations (given their needs and capacities) in the sector in the target locations (we are interested in innovative solutions rather than typical traditional livelihoods interventions).

b) outline any gaps that must be filled for refugees/host populations to sustainably gain employment through the value chain, and how the value chain can be developed.

c) identify potential of certain chains to promote the inclusion of and cohesion between refugees and host populations.

d) determine how to create competitive advantages for the targeted sectors in the context of local and regional trends, having in mind the context of the refugee/host populations.

e) improve a value chain’s environmental performance (must be linked to increasing incomes and creating (green) jobs by supporting adoption of greener and more climate resilient practices and inputs and designing interventions for circularity[1]).

f) shortlist possible initial pilot partner(s) for each chain. Partners can come from the public, private or civil society sectors and are the ‘early adopters’ who DRC can work with to test whether the intervention is likely to be feasible, and lead to benefits for target groups.

VII) Stakeholder’s Validation Workshop

The workshop aims to increase ownership among key sectoral stakeholders (market actors) over the findings and recommendations, correct oversights or errors in the findings, validate the initial identification of constraints or intervention areas and contributes to consensus building. The workshop should include presentation of the VCA findings and recommendations (proposed sector vision, interventions/business models). The workshop may be face to face or online for a half day duration.

VIII) Final Consolidated Report

The consultant must produce a report with the main findings and recommendations.

The Service Provider must incorporate the inputs from the validation workshop. The report must be submitted in English. The report must be structured according to the following guidelines:

 Cover Page

 List of Acronyms

 List of Figures

 Table of Contents

 Executive Summary

 Introduction/Background

 Methodology/Approaches and tools used

 Key Findings

 Conclusion and Recommendations

 Annexes

The consultant must also submit as Annex to the final report the database of contact details of all the stakeholders who participated in the data collection and the validation workshop.

KEY DELIVERABLES

1. 10-15 pages Inception Report

2. Qualitative and quantitative data collection tools reviewed and approved by DRC’ Programme and MEL Team.

3. Value Chain map (visual)

4. Draft Summary of the Value Chain Analysis report & Recommendations report

5. Validation workshop (including agenda, presentations and minutes)

6. Final consolidated report (with stakeholders’ database)

*DRC will have a maximum of three rounds of reviews for all deliverables before finalization.

TIMEFRAME

The consultancy is expected to commence at mid-May 2022 and will take a maximum of three months.

ETHICAL CONSIDERATIONS

Any service provided on behalf of DRC should adhere to basic ethical considerations. These include, but are not limited to, the Do No Harm principle, informed consent, etc. Additionally, the service provider/firm will adhere to DRC’s policies pertinent to the nature of this service (s) including safety and code of conduct.

All materials developed and submitted to DRC will be the sole property of DRC and should not be shared or published without approval.

CONSULTANT’S PROFILE

The consultant / consulting firm is expected to meet the following criteria to be eligible:

1. 5-8 years of professional experience in market assessment, economic analysis, value-chain analysis, and research

2. Experience in conducting/implementing value chain analysis/development similar to the scope of work of this project.

3. Familiarity with the Market Systems Development Approach

4. Demonstrable knowledge and understanding of livelihoods and economic recovery programming for refugees, including business development services, self and wage employability, and job creation.

5. Knowledge of the local context in Turkey in particular the target areas in southeastern Turkey, including legal framework (including applicable labor laws) and operational environment for SuTP and other refugees

6. Familiarity with and access to stakeholders relevant to the value chain in each sector

7. Experience working with the private sector and Syrian community in Turkey, particularly in the target areas, will be an asset

8. Advanced university degree in economics, entrepreneurship, international development, business management, or other fields relevant to the consultancy

9. Strong qualitative and quantitative data analysis skills

10. Fluency and ability to develop well-written analytical reports in English. For those conducting the survey/data collection, fluency in Arabic and Turkish is required.

11. Excellent communication, facilitation, and interpersonal skills and cultural sensitivity

APPLICATION REQUIREMENTS

Interested applicants should submit the following documents separately for each Lot:

1) DRC Annexes: Supplier Registration form, Supplier Code of Conduct, and General Condition of Contract

2) Technical proposal describing the proposed methodology, tools, and key considerations for

the assessment

3) A work plan for the consultancy

4) CVs of proposed experts/team members

5) Two samples of comparable work produced/written by any of the proposed experts/team

members (not by the firm/company) – preferably value chain related

research/assessment/analysis

6) Financial proposal inclusive of all fees and expenses needed for the work

7) Two references related to relevant work previously conducted (must reflect the quality of the final report submitted)