Request for Proposal (RFP) for Online Ordering System. CDFA grant: A growing Movement to Seed Change

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1 Request for Proposal (RFP) for Online Ordering System CDFA grant: A growing Movement to Seed Change County Public Health Services recently received a Specialty Crop Block grant from the California Department of Food and Agriculture (CDFA). Public Health received the grant on behalf of the Health Leadership Network, who will oversee project implementation. This is a request for proposals to address an online ordering and distribution component of this project. Proposals will be due no later than 8:00 pm PST, Monday, May 3, Please submit your proposal in electronic format to hlnassistant@sbcglobal.net. Page limit: 12 page maximum. Background Prior to the CDFA grant, the Health Leadership Network (HLN) has been implementing an obesity prevention grant from the California Endowment. That grant project focuses on shaping our environment to support health by addressing access to fitness/recreation opportunities as well as access to healthy foods. The HLN has been promoting Farm-School and Farm- Institution as efforts that would increase purchase of local produce in local schools, hospitals, restaurants and other institutions. The Food Service Directors in most of the school districts have increased purchase of local produce. In some cases, purchases have doubled from last school year to this school year. Increased utilization of local produce among local institutions is a means to improve health and nutrition across a range of population sectors while also supporting the local economy. The California Endowment project serves as the backdrop for continuing to expand on these efforts with the CDFA Specialty Crop Block grant. Online Ordering and Distribution Purpose Both HLN grant projects have goals to promote, expand or grow our local food system. A key part of that system would include an efficient and user-friendly way for local institutions to purchase what local farmers are growing. One of the key barriers currently identified to purchase of local produce is that many institutions do not know what is available and when it s available. An online ordering system would provide an inventory of what is available throughout the year from local farmers and would include an organized, electronic system to invoice, track and arrange for deliveries of local produce. While acknowledging that there are limitations on our local food system, the intent of the online system is to create a hub of local food availability information that would facilitate easy ordering by the institution which in turn would contribute to more secure markets for local growers. In this way we hope to more fully develop the market potential for locally grown specialty crops. It is also recommended that the system be designed with the capacity to accommodate direct ordering by the general public once established. Focus on Specialty Crops 1

2 The focus of the CDFA grant is on increasing production and consumption of specialty crops. Specialty crops are defined by CDFA as fruits, vegetables, tree nuts, dried fruits, horticulture, and nursery crops, including floriculture. Specialty crops do not include eggs, grains, or dairy and does not distinguish between organic and non organic methods. The entity developing the online ordering system may choose to incorporate within the system other products than specialty crops. However, grant funds may only be applied to specialty crops. Application of the online system to other products would need to be financed by additional funds. For purposes of the CDFA project s scope of work, specialty crops focus on fruits, vegetables, and tree nuts. Specialty crops account for 93% of agricultural production in Lake County. The dual purpose of this project is to improve population health via promoting consumption of nutrient-dense foods such as vegetables, fruit and tree nuts, while at the same time increasing production of small farms devoted to cultivation of an expanded variety of specialty crops. Healthy People baseline statistics indicate that population intake of vegetables is particularly woeful; less than 3 percent of the population age 2 and older consumed at least three daily servings of vegetables, with at least one-third of these servings being dark green or orange. This project is not funded to promote the 7% of local products that include livestock production, cheese, eggs, field and seed crops since these are not classified as specialty crops. A small marketing component will run in conjunction with other aspects of this project to promote consumption of specialty crops, as well as use of the online ordering system as appropriate. The project s marketing consultant is currently working on these promotional strategies. Resources CDFA funds will provide $5,000 for software purchase to support online ordering. These funds may be used to purchase software as well as other costs related to setting up the electronic design. Electronic design will address such aspects as how product inventory will be accessed by institutions/restaurants/the public, etc., how ordering will be transacted, invoiced, and documented, as well as the method for pick-up or delivery. The $5000 may also be applied to consultation fees regarding the electronic system design. It is anticipated that the online system will be designed with features that can be self-sustaining and will provide the privacy protections deemed necessary for those using the system. In addition to the $5,000 allocated for the electronic software component, $29,000 will be provided for the selected contractor to implement the system to full operation and sustainability during the grant term. The term of the project is May 2010 May The applicant s proposal will set forth how the total of $34, 000 will be expended over this term. This will include scope of work, implementation plan and budget that demonstrates activities, timeline and expenses. Applicants will demonstrate their approach to how activities are best sequenced and how they see funding expenditure, as well as identification of key implementation benchmarks. It is anticipated the selected applicant will receive an upfront payment to get the project started and subsequent payments will be made in accordance with 2

3 scope of work and grant distribution of funds. Details for this process will be included in the selected candidate s contract. Various aspects of the project will include such things as speaking with growers and buyers to better understand what s important for optimal function of the system. For instance, it would be important to understand the product and service requirements of buyers, such as volume needed, the minimum number of items that can be accepted from one supplier, invoicing schedules, etc. There would also be discussion with growers regarding their production. Success of the system will necessitate developing agreements with growers and buyers to participate in the system, devising a method whereby products are organized for ease of ordering and addressing how pick-up/delivery will be implemented. It is anticipated that the system will feature Lake County growers, but it is appropriate for the contractor to include buyers from outside of Lake County. The applicant will also include how buyers and growers will be trained to use the online system. There are numerous possibilities for how the system can be designed. In many of the example websites listed below as resources, online ordering is similar to an online farmer s market. Online farmer s markets may be more applicable for public participation, but not as userfriendly for institutions. Many online systems include seller price points, which may discourage seller participation. I-Trade (a website for global trade) is password protected and operates on the basis of the buyer placing an order for the seller to fill. The online system may have differing applications for institutions and the public. The contractor will describe the rationale for system design and the approach that is selected. It is anticipated that the contractor will outline a brief business plan to be submitted with the proposal, identifying how the online ordering system will be sustained into the future. For instance, it may be that the contractor charges a customer service fee for some portion of the service provided. Project Scope of Work Implementation Plan The Contractor proposal will address the following elements. 1. An outline showing how the online ordering system will be developed, including but not limited to the following: o a timeline identifying key tasks and targets for completion for year one and year two o who will be responsible for completing tasks and meeting the targets o first year will focus on piloting the institutional ordering system such that it is fully operational within the first year of start date 2. A narrative description of the system including, but not limited to the following: o Key features of the online ordering design rationale for approach and design that is chosen 3

4 software that may be utilized and what the electronic system will have the capacity to deliver; for instance will there be drop down-features that distinguish among various produce varieties, pricing, etc. o How system operation is envisioned, for instance: how inventory of specialty crops is collected, organized and updated how the farmers interface with the system how the institutions interface with the system how the public will interface with the system how purchases are invoiced, tracked and documented how the delivery system works how the system might foster buyer-seller relationships how buyers and sellers will be engaged to participate how buyers and sellers will learn how to use the system how the system will be evaluated for effectiveness optimal potential of the system over the long term o A plan for how the system will be sustainable beyond the grant o Roles and responsibilities of all involved in the project; contractor s tasks, as well as all other staff that may be involved Budget Applicants will prepare a budget with sufficient detail to portray how funds will be spent, including but not limited to the following: o Number of contractual hours contributed to the project and hourly rate for all who will be compensated by grant funds o Description of what services or deliverables the contractual hours will provide as related to scope of work and timeline o Assurance that funds will pay for services that support online ordering of specialty crops only during the grant term Estimated Proposal Timeline Applications review: Target date May 4 10, 2010 Application interviews: Target date May Candidate selection and notification: Target date May 24. Contractor will also need: Three References that can be contacted with regard to capacity of contractor to complete the project Comprehensive Public Liability insurance, both bodily injury and property damage, in an amount of not less than one million dollars combined single limit coverage per occurrence 4

5 Automobile Liability Insurance of not less than one million dollars combined single limit coverage per occurrence Examples of online ordering systems that may be helpful as a reference: Please note that these examples are provided as a means to become more familiar with online ordering systems. Contractors are not prompted to or precluded from utilizing these or any other existing systems. Oklahoma Food Coop; they were among the first to go online There is also a list-serv called "localfoodcoop" most entities stemming from the Oklahoma Food Cooperative. Another resource: An entrepreneur in Wisconsin has designed a web-based system called Local Dirt that is available nationally for farmers to post available products (fresh market or value-added) and is appropriate for both farmers market use as well as wholesale. Another resource: Two distribution models in Ohio: LocalCrop: an online farmers' market exclusively available to restaurants, institutions, and foodservice operator that is BRAND new--operates via Sysco, a national food wholesaler, to link local producers and restaurants. Fresh Fork: another virtual farmers' market available to anyone that has been in operation the last year or so in Cleveland and is different from the above as Fresh Fork does the distribution dirty work. The following article features the two different models: Local Harvest: Online repository of farms, CSAs, farmers' markets, etc.: which does allow you to search by an 'online store' which only lists items in season, and then you can search by zipcode. 5

6 Farmer Girls Farmers Online Market: and an article about them: New Hampshire: (partnership with NH Dept of Ag, Farm Credit Service, etc.) NY Food Trader: and an article about it a year ago: Ecotrust's new FoodHub: A video demo is available here: &bctid= Thank you for your interest in this important project! 6