Request for Proposals
BUILDING A CASE FOR SMALLHOLDER INCLUSION IN INDONESIA'S PALM OIL SUPPLY CHAINS
1. Overview
CDP is inviting proposals from suppliers to develop metrics on smallholder inclusion. The study will be focused on the actions taken by companies in the Indonesian palm oil value chain. Work will contribute to CDP's expansion to social issues linked to sustainable commodity production. The project must be delivered by October 2022.
2. Background
CDP was founded in the UK as the Carbon Disclosure Project in 2000 and pioneered the concept of environmental disclosure as a fiduciary responsibility. In 2003, CDP launched the world's first standardized process to seek disclosure of environmental performance information on behalf of investors. The CDP system today remains the world's only integrated environmental disclosure system, now covering climate change, water and forests.
The unsustainable production and supply chains of forest risk commodities such as cattle, soy, timber, and palm oil present significant business risks and negative environmental impacts on land, water, biodiversity and climate change. CDP Forests provides a framework of action for companies to measure and manage forest-related risks and opportunities, transparently report on progress, and commit to proactive action for the restoration of forests and ecosystems.
Under the Power of Procurement project, CDP will drive the transition towards a sustainable palm oil sector in Indonesia by promoting disclosure and transparency and strengthening supplier engagement, including with smallholders. Smallholders have a pivotal role in the transition to a sustainable palm oil sector, particularly in Indonesia, however their technical and financial capacities are often limited. Support, both financial and technical, from purchasing companies can increase yields and income, improve land management, and provide access to both national and international markets.
3. Objectives
The purpose of this assignment is to support smallholder inclusion in the transition to deforestation-free palm oil production through the development of metrics that track and incentivize technical and financial support to smallholders. The study also aims to scale up best practices in smallholder inclusion by showcasing best practice taken by companies and financial institutions.
4. Scope of work
1. To research the barriers and opportunities to smallholder inclusion in Indonesia at a market level, including economic factors such as the relationships between value creation and investment into more sustainable palm oil production.
2. To engage with targeted companies, and other relevant stakeholders to better understand current barriers and challenges to increasing smallholder inclusion.
3. To develop business case outlines for palm oil smallholder inclusion for the various stakeholders along the value chain, including but not limited to:
i. Purchasing companies
ii. Policy makers
iii. Financial institutions
4. To develop case studies for smallholder inclusion best practice.
5. To make recommendations for improvement to metrics that track smallholder inclusion across the CDP disclosure system.
6. To produce a final recommendations report with the key findings, including metrics, rationale, and use cases for integration into business.
7. Support dissemination of findings as technical expert, likely through a virtual event.
5. Methodology and Work Plan
The supplier will be required to develop a methodology and work plan that is relevant to the stated objectives. CDP will make case studies from public corporate responses on smallholder engagement through its questionnaire available to the supplier and can arrange introductions to companies for interviews.
6. Deliverable and Timeline
The assignment needs to be completed by October 2022. Key deliverables identified for this assignment are:
1. Recommendation report
2. Standalone outputs: initial research, case studies, business cases.
3. Support delivery of launch webinar
7. Qualifications & Experience
Suppliers that can evidence experience are invited to submit proposals. Expected competency and experience includes:
1. Expertise in palm oil supply chains including the role of smallholders.
2. Knowledge of how CDP works to be able to leverage its unique position to remove deforestation from corporate supply chains and financial institutions' lending and investment portfolios.
3. Experience of working to drive environmental change within the private sector – ideally in industrial firms or financial institutions.
4. Experience managing multiple relationships with stakeholders, working on politically sensitive issues.
5. Knowledge of and experience working with government and other entities involved in regulating palm oil production in Indonesia.
6. Experience delivering robust, evidence-based research and reports to a standard that can be published.
8. Budget
The budget for this work is US$30,000 (fixed price). Proposed budgets will be reviewed with respect to scope and how deliverable the work plan is. Value for money will be a key criterion for the evaluation of proposals. Please refer to assessment criteria below.
9. Application Procedures
1) Detailed methodology about how the work will be delivered (max. 5 pages, excluding tables and diagrams).
2) Expected timelines for key project activities, stages and deliverables.
3) A fully costed budget including charge out rates
4) The suppliers experience, including CVs for people in significant roles (2-page limit per CV).
5) At least one example of a work product relevant to the deliverables.
Proposals should be professionally presented, written in English and submitted electronically (PDF or MS Office compatible) with font no smaller than 11 point. Where documents are embedded within other documents, please provide standalone electronic copies.
Applicants should submit only such information as is necessary to respond effectively to this ToR. For any queries or clarifications kindly contact Rini Setiawati, at rini.setiawati@cdp.net. The deadline for submission is 12 August 2022.
10. Proposal Assessment Criteria
The following criteria will be used to evaluate proposals, with the technical component weighted as 70% and the financial proposal as 30% of the proposal's overall assessment. Suppliers must be able to deliver all outputs by 31 October 2022.
Criteria for Technical Component
Proposed approach | 40% |
Previous experience with similar assignments | 30% |
Demonstrated technical, managerial and capacity development experience | 30% |
Total | 100% |
Criteria for Financial Component
The budget is clearly linked to the activities and outputs outlined, with appropriate allocation of time and resources, and costs that appear reasonable for the activities proposed, | 50% |
The application provides confidence that the project will represent good value for money, including the Four Es (economy, efficiency, effectiveness, and equity) | 50% |
Total | 100% |
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