Request for Proposals: Winnipeg Food Hub Feasibility Study

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1 Request for Proposals: Winnipeg Food Hub Feasibility Study Deadline for Submissions: October 11, 2013 (midnight, central time) Contract Awarded: October 25, 2013 Final Deliverables Due: January 15, 2014 Submit Proposals: By with Winnipeg Food Hub RFP in the subject line to Carolyn Townend Purpose: Food Matters Manitoba and community partners are in the process of selecting an individual or firm to conduct a feasibility study to determine the economic viability of a food hub in Winnipeg, Manitoba. The study will inform decisions on whether and how to proceed with the proposed food hub. The goal of the food hub is to develop an economically self-sustaining facility that will support the local, sustainable food economy and facilitate collaboration. Background: Food Matters Manitoba engages Manitobans towards healthy, sustainable and fair food for all through community development, public education, and network and partnership building. Currently we are involved in over 35 projects in communities across Manitoba. As part of our work, Food Matters Manitoba has engaged in activities to encourage local, sustainable food including a grocery store labeling campaign, public education, small grant programs, and research. The Winnipeg Food Hub is the vision of several partner organizations and individuals to create a food hub that would include temperature-controlled storage, shared services, equipment, event and meeting spaces, and office space for food organizations. Participating partners have identified Food Matters Manitoba as a coordinating organization to facilitate visioning and planning of the food hub. To this point: A 2012 study by Food Matters Manitoba identified key gaps that could be addressed by a food hub ( A Steering Committee has been formed to guide the development of a food hub. A potential venue has been identified in a central location. Research into food hub models in other jurisdictions has been completed. 1

2 A vision for the food hub has been developed. Initial research has identified that food hubs in other jurisdictions have been economically viable while playing an enabling role in the local, sustainable food economy. While the term food hub is used to describe a wide variety of facilities, it is envisioned that the Winnipeg Food Hub would include four inter-related components: 1. Food aggregation, packing and storage facilities that would enable farmers to access wholesale buyers in Winnipeg and allow partner organisation, including Winnipeg Foodshare Co-op to store, pack, and deliver food orders. 2. Office space and shared resources for non-profit food organizations; balanced with spaces leased to for-profit organisations and professional tenants at market values. 3. A small-business incubation kitchen that would enable entrepreneurs to test, produce and market their food business concepts from a state-of-the-art commercial facility. 4. A roof-top aquaponics greenhouse that would produce year-round fresh greens, fish and fertiliser for local markets in Winnipeg. Each of these components is expected to benefit from close proximity, shared resources and opportunities for collaboration. Each component could involve the provision of additional services for farmers, clients and partners, including but not limited to insurance, traceability, certification, business planning, land management and marketing. This feasibility study will guide future decisions regarding the Winnipeg Food Hub, including if and how to proceed with the business planning process. Feasibility Study Description: The Winnipeg Food Hub Feasibility Study will focus solely on the first two components, shared office space and aggregation, of the food hub, since the kitchen and aquaponics components are being developed separately. This study will investigate the feasibility of the two components along three main areas of focus: the financial potential as a self-sustaining entity, the operational requirements (equipment, regulations, human resources), and the market opportunity. Financial Potential What are start-up costs? What are anticipated operating costs? What are costs associated with building renovation for a variety of components of the food hub: event space, delivery facilities, and cold/dry storage? What are the available fee structures for office space, event space, cold/dry storage food aggregation and other services? 2

3 How do changes in cash flow from seasonal supply and demand affect the operations of the food hub? How much working capital is required? How long does each component require to break even? What are potential sources of funding for the start-up? What are projected sales of local food sold through the food packing and aggreagation facility? What is the projected occupancy of the building and cold storage? Operational Requirements What food safety and business regulations will the food hub have to meet? What additional costs are there to meeting these regulations? What are staffing requirements for the facility? What model of food aggregation and packing is best suit for Winnipeg, including direct purchase, consignment, farmer cooperative, marketing board or fee for service? What are equipment and vehicle needs? What type of building and location is best suited to individual food hub components? What additional services are required/sought by clients (farmers, small businesses, and organisations)? What are the risks associated with operating the food hub? What organizational structure(s) would best enable the food hub to succeed? Market Context What is the projected level of participation in food hub services from local farmers? What capacity do Manitoba farmers have to meet demand? What is the expected level of market growth? Who are the competitors to the food hub? What are the comparative strengths and weaknesses of competitors? What are the competitive advantages of the food hub? How do market trends affect the operation of the food hub? What economic value does a food hub bring to local food distributors, competitors, suppliers, farmers, and non-profits in Manitoba? What other potential market opportunities exist for generating revenue through the food hub? The consultant will deliver a report answering these questions by January 15, 2014 to Food Matters Manitoba. Funds will be disbursed upon receipt of the approved final report. To complete the feasibility study, we anticipate that the contractor would consult with participating organizations and individuals, other food hubs, and complete an analysis of 3

4 financial and market contexts. Food Matters Manitoba and partners will provide information about the business conceptv, previous research, and contact information for stakeholders in Manitoba. In addition, the consultant will have access to business plans from participating partner organisations. Budget: Our total budget for this project is $18,000-$20,000, inclusive of taxes. This budget should include travel costs, honorariums, or promotion to enable rural and business community participation in the feasibility study. Funding was provided by J.W. McConnell Foundation, Enterprising Non-Profits Manitoba, and Heifer International. Proposal Submissions: An electronic copy of your proposal must be received by Food Matters Manitoba no later than October 11, Proposals should be sent to Carolyn Townend with Winnipeg Food Hub RFP in the subject line). Proposals shall not be accepted after the closing date. It is the responsibility of each proponent to submit all required documents as outlined in the Request for Proposals. Required documents for the proposal: Cover letter Detailed work plan with a schedule of activities. Itemised budget. Feasibility report template. Proponent background that identifies: o Your experience answering the types of questions as set out above and the methods that you would use to respond to these questions in this feasibility study; o The breadth of your experience conducing feasibility studies, particularly pertaining to social enterprises; o Your familiarity with the local, sustainable food economy in Manitoba; o Other relevant experience and credentials. Two examples of completed projects of a similar nature with client references. Curriculum vitae of proponent(s). 4

5 Consultant Selection: Each response to this Request for Proposals will be evaluated to determine the degree to which it responds to the requirements as set out. Factors to be considered in application evaluation will include: Criteria Scoring Provides a complete submission addressing key requirements outlined required in the RFP. Is able to provide all of the deliverables specified. required Provides a detailed, comprehensive budget and workplan. required Demonstrates familiarity with business, and particularly social 25 points enterprises. Demonstrates a clear and feasible plan to implement the feasibility 25 points study to address the key requirements outlined in the RFP. Demonstrates familiarity with the Manitoba local, sustainable food 15 points economy. Has a proven ability to deliver a well-documented and researched 15 points feasibility study on schedule. Has a breadth of experience in conducting feasibility assessments 10 points (based on similar completed projects of high quality). Demonstrates understanding in business planning and financial 10 points resources available for completing the food hub. Total Out of 100 The proposal will be awarded to one individual or firm by October 25, Food Matters Manitoba reserves the right to reject any and all proposals received as a result of this RFP and is not liable for any costs incurred by consultants in response to this RFP. Food Matters Manitoba staff will review the proposals and convene interviews with a shortlist from amongst the applicants. Only those selected for an interview will be contacted. Food Matters Manitoba agrees that the content of each response to this Request for Proposals will be held in the strictest confidence and details of any response will not be discussed with other parties, with the potential exception of the Winnipeg Food Hub Steering Committee. For Further Information: It shall be the proponent s responsibility to clarify any points in question with Food Matters Manitoba prior to submitting their proposal. Inquiries regarding the food hub should be directed to: Daniel Gladu Kanu (Re-Visioning the Manitoba Harvest Coordinator, Daniel@foodmattersmanitoba.ca, ). 5