Contract Extension vide exercising option clause 52.217-8

USAID Kenya awarded the Kenya Horticultural Development Program (KHDP) contract to Fintrac Inc. in September 2003 and implementation started in October 2003. Results to date have been impressive and KHDP has contributed significantly to increased incomes for smallholders in the horticulture sector. KHDP has trained more than 40,000 growers since the start of the program and has also contributed to national policy initiatives which support the growth of domestic, regional and export markets. More than 70 collaborative alliances with key private sector businesses continue to enhance sector competitiveness in markets. Various NGOs and public sector agencies also collaborate with KHDP. Since the start of the program, Kenyan horticultural exports have increased by 40% to $700 million while domestic market growth is estimated at 5-10% per annum. New income since 2003 through employment and smallholder production for the horticulture industry is estimated at $16 million. It is widely acknowledged by industry stakeholders that USAID’s KHDP has contributed to this growth. The Government of Kenya and USAID Kenya recognize the important role of horticulture in alleviating poverty through increased food production and income generation in rural areas. Furthermore, the industry has strong growth potential, particularly in crops and products which can be grown by smallholders, and has strong multiplier effects on other economic sectors. USAID Kenya is committed to supporting the industry subject to availability of funds. To avoid loss of momentum, contribute to sector re-establishment after post December 2007 election crisis; and to allow time to design and introduce a new program for competitive bidding and award, it is proposed that Fintrac’s current contract be extended for six months from the current end date of September 30, 2008 through March 31, 2009. USAID Kenya will be exercising option clause 52.217-8 to modify the contract.