Agriculture and Horticulture Development Board Tender for AHDB Cereals and Oilseeds To determine the volume of grains Fed on Farm in the UK 1. Introduction This document is an invitation to develop a proposal on behalf of the Agriculture and Horticulture Development Board (AHDB). AHDB wishes to commission a proposal to develop a methodology that could be used to calculate the amount of grains which are fed straight to livestock on farm by farmers in the UK. Submissions for the provision of these services should be based on the information contained within this document and submitted to Brenda Mullan in the format outlined in Section 5. 2. Background AHDB Cereals and Oilseeds is a division of AHDB; a levy-funded, independent organisation which plays a pivotal role in improving farm business efficiency and competitiveness. AHDB Cereals and Oilseeds works to create a dynamic UK arable supply chain where all are able to profit from a sustainable sector. AHDB Cereals and Oilseeds mission is to deliver a world-class arable industry through independence, innovation and investment. Each year AHDB publishes a three year rolling Corporate Plan 1. It includes the strategies, activity plans and targets proposed within each of the six sector boards and also the levy rates required delivering these plans. As part of our activities within the cereals and oilseeds sector, AHDB Cereals and Oilseeds publishes the Department for Environment, Food and Rural Affairs (Defra) forecasts of cereal supply and demand for the UK. These can be found on the AHDB Cereals and Oilseeds Markets website at the following link: http://www.hgca.com/markets/supply-and-demand.aspx. One of the major areas of demand for UK cereals is in animal feed, and within this, the level of consumption of a number of components are considered, including compound feed producers, integrated units, pet food and grains fed straight on farms. While official data is used for the other components of feed demand, official statistics are not available for Fed on Farm. Until June 2003, monthly estimates for the amount of grain Fed on Farm in England and Wales were collected via the Defra Grain Fed to Livestock survey. The Defra survey collected estimates of bought-in grain and grain on own holdings and excluded bought-in compound feed from approx. 1,200 farms on a quarterly basis and approx. 450 farms in the interim months. With this survey being discontinued after this date, Fed on Farm estimates within the Balance Sheet were inevitably less reliable. Subsequently, AHDB utilised an econometric model which considered livestock numbers and feed prices to estimate the fed on farm number. This methodology was also discontinued as it accumulated error over time so became a less reliable source for estimating Fed on Farm. 1 http://www.ahdb.org.uk/publications/corporate.aspx
With the Fed on Farm figure presently an unknown, the estimate for the balance sheet is calculated through considering a combination of factors, including but not limited to: livestock numbers; prices; weather; storage and forage availability; the quantity and quality of crops; livestock nutritional needs and industry intelligence. Given that the UK cereals supply and demand estimates are used to inform the industry s commercial decisions, it is important that the estimates are determined in a robust manner with sound assumptions underpinning them. In addition, this information would be important in assisting strategy decisions on AHDB levy rate forecasting and budgeting. 3. Service requirements AHDB Cereals and Oilseeds invites suitably skilled and experienced organisations to present a range of potential methodologies which could be utilised in the calculation of the UK Fed on Farm number. Through assessing each methodology detailed in the proposal, the tenderer should select and present a preferred methodology, which would be best able to achieve the objectives of this tender, as outlined below. The fundamental objective of this tender is to establish how to get to an indication of the volume of grains fed directly to livestock on farms in the UK. The preferred methodology should be capable of providing a realistic and credible indication of the actual Fed on Farm volume, which could potentially be used, alongside the other official statistics currently utilised, to inform deliberations in the balance sheet process. Proposal submissions should address all requirements as set out in this brief and well as the weighted evaluation objectives outlined at Section 5.2. 3.1 Methodology Tenderers are invited to provide practical considerations and outline in more detail how the methodologies outlined in the proposal, as well as the preferred methodology, would achieve the objectives set out within their proposal submissions. An analysis of the potential risks to the successful delivery of the objectives is to be included within each methodology considered, along with how these risks could be mitigated or avoided. 3.2 Quality Control The tenderer will be expected to have quality management systems and quality control systems in place, reference to these should be noted within the proposal. Tenderers must include a statement on data security, which is to include consideration of i) compliance with the Data Protection Act and appropriate professional standards of practice; ii) safeguards for the storage and transfer of personalised data. Please also confirm that all employees (including any agency staff) will at all times follow the MRS code of conduct and guidelines 2. 2 MRS Code of Conduct can be accessed at the following link: https://www.mrs.org.uk/standards/code_of_conduct/
4. Outputs The tenderer will be responsible for outlining in detail the outputs that the proposed methodologies, including the preferred methodology would achieve. It is important that outputs are robust enough to stand alongside the other official statistics which are used in balance sheet calculations. 5. Structure of submissions and evaluation methodology AHDB Cereals and Oilseeds is only willing to consider a proposal submission from organisations with suitable expertise or experience. The contract will be awarded on a fixed term, fixed price basis with the assignment of all rights regarding the outputs belonging to AHDB Cereals and Oilseeds. The successful tenderer may not use the outputs for their own use under any circumstances. Tenderers are asked to produce a comprehensive but concise proposal that demonstrates how they will fulfil the requirements of the specification. The proposal must provide the following details: 1. Name and full contact details of the organisation and project manager. 2. A brief summary of suitability of the organisation for the exercise. 3. A detailed description of a range of methodological options which could be used to calculate Fed on Farm. A considered assessment of the pros and cons as well as the risks (and mitigation measures) associated with each should be detailed, to arrive at the selection of the preferred option. 4. Suggested key targets/milestones and dates of achievement (timetable) for the preferred 5. A breakdown of costs for all stages of the project, excluding VAT, for the preferred 6. A breakdown of the number of days and day rates for each stage of the preferred 7. CVs for key members of staff involved with the project. 5.1 Budget AHDB do not intend to give details of our budget for this work. Tenderers are asked to provide a costing based on their experience of undertaking similar projects. Costings in GBP (excluding VAT) should be outlined in detail for each element of the work included in the preferred Costs not included within the proposal will not be considered after signing off the contract.
5.2 Evaluation of the tender Evaluation of the tender will be undertaken in accordance with the following criteria and weightings: Demonstration of a clear interpretation of the brief into strategic development proposals. To establish a range of methodologies which could meet the aims and objectives of the tender and presentation of the preferred option, based on a weighing up the pros and cons and risks of all the methods proposed. To demonstrate experience of undertaking previous work with the arable industry. Demonstrate how comparability to previous studies could be achieved. Understanding of role of market research for AHDB divisions. Demonstration of an understanding of the nature of AHDB, its divisions and their objectives. Demonstrate an understanding of AHDB Cereals and Oilseeds services and issues affecting the cereals and oilseeds sector Experience and expertise being able to demonstrate, with reference to specific examples, a recent successful track record with similar contracts. Demonstrate a process for quality control and compliance with MRS code of conduct. Ability to deliver on-time and on-budget. To enable comparability of proposals a full breakdown of costs must be provided as discussed in section 5.1. A timetable for the project which identifies any risks in delivery must be included. 45% 30% 25% AHDB will review proposals following the closing date, and may consult with interested parties as part of the selection process to refine and agree outputs. AHDB reserve the right to decline all tenders should the requirements not be met. 5.3 Timeline The deadline of receipt of responses to this tender is Friday 12 June 2015. Tasks Deadline Tender circulated Monday 1 June 2015 Deadline of receipt of responses Friday 12 June 2015 The timetable for the completion of the project will be developed if a successful tenderer has been selected. A suggested timetable (subject to change) has been provided below. Tasks Deadline Notification of decision Friday 26 June 2015 Contract start date Friday 3 July 2015 Inception meeting (optional, venue: Stoneleigh Friday 10 July 2015 Park) Final Report to be received by AHDB MI Friday 7 August 2015 Final sign off by tenderer following review and Friday 14 August 2015 data check by AHDB MI
5.4 Submission Should you wish to submit a proposal, an electric copy (sent to brenda.mullan@ahdb.org.uk) must be received no later than midday Friday 12 June 2015 with AHDB CEREALS AND OILSEEDS FED ON FARM TENDER 2015 in the subject heading of the e-mail. Proposals will not be opened / accessed until after the closing date. It is the tenderers responsibility to ensure that all submissions have reached the intended by the due date and time. Failure to submit by the due date and time will result in the automatic rejection of the submission. The successful tenderer will be required to sign a contract with AHDB CEREALS AND OILSEEDS. AHDB terms and conditions will apply and these are available from: http://www.ahdb.org.uk/about/procurement.aspx