(CLOSED) Request for Proposal – Study on Living Income Gap in Global Natural Rubber Value Chains – Myanmar

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Introduction & Background

The Global Platform for Sustainable Natural Rubber (GPSNR), is an international Multi-Stakeholder, voluntary membership initiative seeking to lead improvements in the socioeconomic and environmental performance of the natural rubber value chain. Development of the GPSNR was initiated by the CEOs of the World Business Council for Sustainable Development (WBCSD) Tire Industry Project (TIP) in November 2017. Members of the platform include tire manufacturers, rubber suppliers and processors, vehicle makers and NGOs.  Representatives from each of these stakeholder groups have contributed to the development of the Singapore-based platform and the wide-reaching set of priorities that will define GPSNR strategy and objectives.

Through a process led by the Equity Working Group, the Platform has begun an investigation into how value can be equitably distributed across the entire natural rubber value chain. To achieve this aim, it is important for the Platform to gather information about the following metrics in different countries:

i) the prevailing net household income of rubber smallholders;

ii) the detailed cost of production for rubber (input costs, labor etc);

iii) the living income for rubber smallholders;

iv) the living income gap and v) the living income reference price for rubber (the price at which the living income benchmark can be reached).

The Platform has decided to limit the focus of this initial study to Ivory Coast, Indonesia, Thailand, and Myanmar and the consultant is expected to collect information on the aforementioned metrics in Myanmar for this study.

Given that living income data is not readily available for each country, alternative benchmarks should be used where relevant and applicable. A list of potential benchmarks and preliminary data are illustrated in the attached document. To facilitate cross-country comparisons of income data and living income levels, the consultant is expected to use consistent units of measurement (per household / per workforce / per person) throughout this study.

The consultant will collect the information via desktop study, interviewing of GPSNR members, research institutes, social NGOs, governmental organizations, etc.  A primary list of stakeholders will be provided by the Secretariat together with the Equity Working Group members.  A complementary list will be developed by the consultant.  Regular contact and updating to the Equity Working Group together with the Secretariat will be required. Travel plans shall be made by the consultant where possible and necessary.

Submission Guidelines & Requirements

The following submission guidelines & requirements apply to this Request for Proposal:

  1. Proposals will only be accepted from individuals or firms with experience relevant to this project.
  2. Examples of previous relevant work should be provided as well.
  3. A technical proposal must be provided that is not more than 4 pages. This technical proposal must provide an overview of the proposed solution as well as resumes of all key personnel performing the work. In addition, the technical proposal should provide a proposed schedule and milestones, as applicable.
  4. A price proposal must be provided that is not more than 1 pages. This price proposal should indicate the overall fixed price for the project as well as hourly rates and an estimated total number of days.
  5. Proposals must be signed by a representative that is authorized to commit bidder’s company.
  6. Proposals must be received prior to 19th August 2020 to be considered. Proposals should be submitted to stefano.savi@gpsnr.org for consideration.
  7. GPSNR anticipates shortlisting at least two individuals or firms to have more in-depth discussions with, and will make an award to one of these “down-selected” individuals or firms.

Budget

The Platform is anticipating that a total budget of no more than 10,500 Euros be allocated to this engagement

Payment terms shall be:

  • 50% at the signing of the contract
  • 50% on delivery of the final report

Evaluation Factors

GPSNR will rate proposals based on the following factors, with cost being the most important factor:

  • Responsiveness to the requirements set forth in this Request for Proposal;
  • Relevant past performance/experience;
  • Samples of work;
  • Cost, including an assessment of total cost of ownership;
  • Technical expertise/experience of bidder and bidder’s staff;
  • The ability to collect information at the global and local level.

GPSNR reserves the right to award to the bidder that presents the best value to GPSNR as determined solely by GPSNR in its absolute discretion.

Please submit your application to stefano.savi@gpsnr.org by 19 August 2020.

More To Explore

(CLOSED) Request for Proposal GPSNR REPORTING REQUIREMENTS (GPSNR-RFP-A02-013)

Introduction & Background

The Global Platform for Sustainable Natural Rubber (GPSNR), is an international, multi-Stakeholder, voluntary membership initiative seeking to lead improvements in the socioeconomic and environmental performance of the natural rubber value chain. Development of the GPSNR was initiated by the CEOs of the World Business Council for Sustainable Development (WBCSD) Tire Industry Project (TIP) in 2018. Members of the platform include tire manufacturers, rubber suppliers and processors, vehicle makers, smallholder rubber growers, and NGOs. Representatives from each of these stakeholder groups have contributed to the development of the Singapore-based platform and the wide-reaching set of priorities that will define GPSNR strategies and objectives.

Through a process led by the Policy Toolbox and Implementation Guidance Working Group (WG1), the General Assembly approved a Policy Framework in September 2020 that outlines the specific commitments to sustainable natural rubber that GPSNR company members must include in their public policies or other relevant documents.  GPSNR ordinary member companies are required to create new or update existing policies to align with the Policy Framework by March 2021 (companies will have a possibility to request an extension provided they can demonstrate progress in developing or updating their policies).  A process is currently underway to develop Implementation Guidance for companies to deliver on their commitments as outlined in the Policy Framework.  Reporting Requirements (RRs) are also to be developed as part of the GPSNR assurance model (currently in draft form).  The RRs will vary depending on where a member company sits within the natural rubber supply chain, so this work will be organized by the following stakeholder categories:  1) natural rubber producers, processors and traders (this stakeholder category will develop RRs for growers, traders of raw materials, processors, traders of processed material) 2) tire makers and other natural rubber product manufacturers; and 3) auto makers and other end users. 

GPSNR seeks a fixed-term consultancy to facilitate the development of the RRs per the stakeholder category.  In 2020, WG1 drafted Baseline Reporting Requirements (BRRs) that were intended to offer a framework for companies to evaluate where they were on their sustainability journey.   Following on feedback from the Executive Committee (EC) in early 2021, the WG decided that the BRRs, with specific modifications, could be converted to become the first year RRs.  A necessary next step is to align the BRRs with other global reporting schemes that members report into, such as ZSL Spott, Global Reporting Initiative (GRI), CDP Forests, and Ecovadis.  The consultant will identify where GPSNR requirements are similar and will align wherever possible.  The Consultant will also specify the connection between specific reporting metrics and specific components of the policy framework.  The Consultant will work with the appropriate focus groups to further incorporate member feedback into the design of the RRs for each stakeholder category.  The consultant will also coordinate with the consultant(s) hired to facilitate the development of the Implementation Guidance to ensure alignment among the Implementation Guidance and RRs.

Once the focus groups approve the RRs, they will go to the broader WG1 for approval, then on to the EC for review/approval, and the General Assembly will vote to adopt the RRs in September 2021.

The Engagement

The Consultant is to develop draft RRs based on the Policy Framework, GPSNR BRRs and Implementation Guidance and through the review of existing reporting schemes (e.g., ZSL Spott, CDP Forests, GRI, Ecovadis) in an effort to seek alignment.

The Consultant will facilitate engagement with specific focus groups and the broader WG1 to further develop the RRs for the following categories:

  • Growers
  • Traders of raw material
  • Processors
  • Traders of processed material
  • Tire makers and other rubber product manufacturers, and
  • Car makers and other end users.

Terms

  • The engagement shall begin 22 March 2021 and the deliverables shall be delivered in their final form no later than 15 June 2021
    • Interim dates for draft submission and review shall be developed and mutually agreed upon with the Secretariat and WG1 Co-chairs at the time of the engagement.

  • The Consultant shall review relevant GPSNR documents (e.g, Policy Framework, draft assurance model design, BRRs, etc.) and conduct a series of interviews with members and other stakeholders to fill any information gaps and to develop a strong understanding of the priorities and needs of the Natural Rubber Industry and Supply Chain members.  This shall, of course, include examination of the opinions and realities of the smallholder growers as well as larger entities.

  • The consultant should have deep understanding and documented experience in:
    • Understanding of sustainability reporting initiatives, particularly those for other deforestation-risk commodities
    • Understanding of the natural rubber industry or other similar forest commodities
    • Understanding of multi-stakeholder initiatives for sustainability
    • Understanding of antitrust regulations and its relevance vis a vis multi stakeholder initiatives
    • Group facilitation/consultation processes

Tasks

  • Review GPSNR Policy Framework, Baseline Reporting Requirements and key sustainability reporting schemes to inform development of Reporting Requirements for each of the six stakeholder categories.
  • Facilitate consultation processes with relevant stakeholder focus groups to further flesh out Reporting Requirements.
  • Regular contact and updating of both the broader Working Group and its Co-chairs and the Secretariat will be required.

Necessary Competencies

GPSNR will award a contract to a consultant based on:

  1. The applicant’s level of experience and proven depth of knowledge on relevant sustainability frameworks/reporting schemes
  2. Value for money
  3. The Secretariat’s and Working Group Co-chairs’ assessment of the viability of the consultant’s ability to complete the deliverables to a high standard.

Submission Guidelines & Requirements

The following submission guidelines & requirements apply to this Request for Proposal:

  1. Proposals will only be accepted from individuals or firms with experience relevant to this project.
  2. Examples of previous relevant work should be provided as well
  3. A technical proposal must be provided that is not more than 3 pages. This technical proposal must provide an overview of the proposed solution as well as resumes of all key personnel performing the work. In addition, the technical proposal should provide a proposed schedule and milestones, as applicable.
  4. A price proposal must be provided that is not more than 1 page. This price proposal should indicate the overall fixed price for the project as well as daily rates and an estimated total number of days.
  5. Proposals must be signed by a representative that is authorized to commit bidder’s company.
  6. Proposals must be received prior to 12 March 2021 to be considered. Proposals should be submitted to aidan@gpsnr.org and stefano.savi@gpsnr.org for consideration.
  7. GPSNR anticipates shortlisting at least two individuals or firms with which to have more in-depth discussions and will make an award to one of these short-listed individuals or firms.
  8. Applicants can obtain a copy of the BRRs by sending a request to aidan@gpsnr.org
  9. GPSNR reserves the right to amend the scope of this RFP in order to get the most suitable consultant.

RFP & Project Timelines

The Request for Proposal timeline is as follows:

Proposal submitted by consultant to GPSNR   12/03/2021
Selection of Top Bidders /
Notification to Unsuccessful Bidders  
19/03/2021
Contract Award /
Notification to Unsuccessful Bidders  
22/03/2021
Work to commence no later than 29/03/2021
Need-date for project completion 15/06/2021

Budget

The Platform is anticipating that a total budget of no more than 10,000 Singapore Dollars (SGD) be allocated to this engagement.    
Payment terms shall be:

  • 20% at the signing of the contract
  • 30% at the midpoint date to be agreed upon and memorialized in the contract based on the submitted work plan
  • 50% on delivery of the final report

Evaluation Factors

GPSNR will rate proposals based on the following factors:

  1. Responsiveness to the requirements set forth in this Request for Proposals
  2. Relevant past performance / experience and / or any samples of past work
  3. Cost, including an assessment of total cost of ownership.
  4. Technical expertise/experience of bidder and the bidder’s staff

GPSNR reserves the right to award to the bidder that presents the best value to GPSNR as determined solely by GPSNR in its absolute discretion.

Tender

(Closed) Request for Proposal – GPSNR Capacity Building Working Group: Smallholders GAP Coaching in Indonesia (GPSNR-RFP-A02-017)

  1. INTRODUCTION

The Global Platform for Sustainable Naural Rubber is an international, multi-stakeholder, voluntary membership initiative committed to improving the socioeconomics and environmental performance of the natural rubber value chain.  Development of the GPSNR was intiated by the CEOs of the World Business Council for Sustainable Development (WBCSD) Tire Industry Project (TIP) in 2018.  Members of the platform include tire manufacturers, rubber suppliers and processors, vehicle makers and NGOs.  Representatives from each of these stakeholder groups have contributed to the development of the Singapore-based platform and the wide-reaching set of priorities that will define strategy and objectives.

The GPSNR aims to support the natural rubber sector to become more sustainable. Key element in achieving  this is to ensure there is capacity among smallholders and industrial plantations to adopt best practices in NR  production.

GPSNR, through the GPSNR Capacity Building Working Group (Indonesia National Subgroup), is seeking proposals to disseminate coaching materials and implement coaching on Good Agricultural Practices (GAPs) for smallholders in Indonesia.

Proposed coaching programmes should be implemented in line with GPSNR environmental and social commitments and values, based on the GPSNR Policy Framework[1].

  1. OBJECTIVES AND SCOPE OF WORK

2.1 Context

There are approximately 2.25M smallholders in Indonesia, representing 83% of national natural rubber production (3.6 M tonnes). Smallholders cultivate less than 2 ha of land with an average yield of slightly below 1 ton/ha, as compared to state and private commercial plantations achieving 1.4 ton/ha and 1.5 ton/ha respectively.

Indonesia’s average rubber yield is significantly lower than neighbouring countries in Southeast Asia; such low yield is due to low-quality clones, limited knowledge of Good Agricultural Practices (GAP) and aging trees.

Most rubber trees in Indonesia were planted from 1978-1991 through several government schemes. Given that rubber trees only have a 25-year productive lifespan, with steeply declining yields thereafter, almost all rubber trees planted under these schemes have passed their peak production. Whilst there is no formal data available on tree aging in Indonesia, the Ministry of Agriculture estimates around 600,000 – 700,000 ha of natural rubber plantations need rejuvenation. Replanting should ideally occur on about 4% of plantations annually to ensure a stable output. Yet, it is estimated that between 2010 and 2017 replanting of only 1.3% was undertaken.

Diseases are a major threat to rubber trees, with 80 – 90% of farmers experiencing tree diseases in 2019 in West Kalimantan and South Sumatra, and 60% in Jambi. When disease (pink and white root rot) attacks trees, the trees should be cut down, leaving not even the stem in the ground, to minimise infection of other trees. A new rubber leaf fall disease is spreading in Sumatra and Kalimantan. This disease causes leaf fall more than twice a year and reduces annual yield by up to 40%. The treatment for this disease is expensive and is often not implemented by smallholders.

Land preparation for replanting is also an important factor for sustainability of production and can lead to lower rubber disease infection rates. Young trees are susceptible to numerous diseases and pests, which smallholders must be coached and financially supported to protect in years 1 – 3. The cost of land preparation and field protection is among the most expensive investments, besides the purchase costs of high yielding clones. Costs incurred during the tree replanting stages is around $2,600 per ha over a 5-year period. During the 6th year, the trees will become productive and operational costs will be $460 pa.

Using the right clone makes a tremendous difference in a rubber tree’s lifetime yields. The productivity of rubber clonal and seedling-derived plants is almost 3 x lower than for certified clones. Across the region, only 5% of farmers received their seedlings through a government programme. Certified nurseries are only located in provincial and district capital cities resulting in limited access to high-yielding planting materials for remote smallholders.

Additionally, poor tapping techniques are another major cause of low yields and can decrease the productive life of trees by up to 50%. It is estimated that an average smallholder with 1.5 ha of rubber will earn 57% less than the Indonesian minimum wage.

Smallholders’ rubber plots and jungle rubber, as opposed to large, monoculture commercial estates, demonstrate higher animal diversity and may be able to come closer to mimicking the diversity found in natural forest ecosystems. Yet, low yields and record low international prices are driving smallholders to clear their jungle rubber and convert to other land uses such as palm oil. Research indicates in some villages on average, smallholders now grow rubber on only 0.34 ha with another 2.17 ha devoted to oil palm, and 66% of natural rubber plantations had been converted to oil palm. Cultivating oil palm also has other benefits such as i) being less labour intensive and generally farmers do not need to hire external labour – although gross returns of rubber are higher, the lower labour requirement for oil palm makes it more profitable for smallholders; ii) palm oil farmers receive more support from the government and supply chain actors; iii) contract farming arrangements for palm oil enables farmers to get loans/credits and extensions services from companies; and iv) the longer start up time for new rubber trees compared to oil palm is another factor as farmers receive income earlier than when planting rubber.

Five provinces contribute 66.5% of national production: South Sumatra, North Sumatra, Jambi, Riau, and West Kalimantan. South Sumatra province is Indonesia’s largest and most productive area. Its natural rubber area is almost 23% of the total national productive area and smallholders’ plantations take up 98.5% of this area. The productivity of smallholders in South Sumatra is the highest among smallholder areas in Indonesia, producing 1.3 ton/ha, and more likely to have received GAP training. In 2019 the government announced a replanting plan for 2019 – 2027, with a focus on South Sumatra (92,600 ha), South Kalimantan (76,550 ha) and Jambi (69,900 ha). However, this plan has no large-scale lending programme associated with it and is to be executed by local governments and has not yet been implemented. Demand for replanting is strongest in Jambi, where 40% of farmers are willing to undertake replanting. Demand is lowest in West Kalimantan, where only 1 farmer out of 79 was contemplating. Most likely the demand in Jambi is due to peak planting being undertaken in 1995 – 2005 and the majority of the trees are approaching their maximum productive age, and Jambi farmers are more aware of the importance of good quality clones and their impact on yield – they also have the highest rate of nursery clone purchase – and have suffered less from disease.

Source:

Financial Assessment of Smallholder Natural Rubber Production in Indonesia. July 2020. USAID Green Invest Asia, HeveaConnect, SNV and Financial Access. [2]

  1. EXPECTED DELIVERABLES

The overall objectives of the GAP coaching programmes are to ensure the long-term sustainability of rubber livelihoods and ecosystems by increasing smallholders’ productivity, yields, and socio-economic resilience, whilst safeguarding nature and the environment.

3.1 Brief Justifications

The proposal should implement GPSNR’s proposed strategy for capacity building in Indonesia and provide brief justifications on the most suitable approach to conduct coaching for smallholders in any of five identified regions:

  1. Northern Sumatra
  2. Southern Sumatra
  3. Central Sumatra
  4. West Kalimantan
  5. East Kalimantan

The GPSNR Capacity Building Working Group (Indonesia National Subgroup) may prioritise funding for coaching in regions based on relative productivity, coverage of existing coaching services, socio-economic needs, or other considerations.

3.2 Proposed Coaching Approach

Possible approaches for consideration include (non-exhaustive): mobile coaching at local community centres; building physical training centres; on-farm coaching; hybrid coaching approaches. The proposal should consider which approach represents the best fit for community needs and dynamics.

The proposed coaching approach should consider, but is not limited to, the following priorities:

  1. Coaching based on the train-the-trainers (ToT) model
  2. Female and other minority inclusion and represention
  3. Field coaching (or other approach) implementation plans
  4. Integration of technology for data capture and ongoing engagement, and progress tracking (i.e. immediate and longer-term monitoring and evaluation)
  5. Others i.e., nuanced approaches to meet geographic/other needs; ongoing farmer community connectivity and interactions; engagement with local or regional officials

Service providers are to adapt the provided GPSNR GAP coaching approaches. The GPSNR GAPs are created to serve as general best practices and principles for global usage and are periodically reviewed and updated to reflect the sector’s latest understandings. The service provider is expected to work with GPSNR to adapt the general GAPs to be in line with local situations in Indonesia in order to build trust with smallholders and to optimize coaching outcomes, especially in terms of language, technical specificities, and local needs.

The GPSNR GAPs consist of the following four modules:

  1. Rubber Plant Material
  2. Establishment and Maintenance of Plantations
  3. Latex Harvesting
  4. Diseases and Pests

Service providers are also expected to operate in line with principles and values set forth in the GPSNR Policy Framework[3] such as commitment to environmental protection and sustainability, zero deforestation, community engagement and FPIC etc.

The selected service providermay also be expected to work closely with the GPSNR Capacity Building Working Group (Indonesia National Subgroup) to fine-tuned or further augment the provided coaching materials.

3.3 Key Metrics

The proposal should elaborate on how the following key metrics can be achieved and measured:

  1. Total number of smallholders coached
  2. Total number of trainers or coaches coached
  3. Year-by-year increases in smallholder productivity and smallholders engaged
  4. Inclusitivity across gender, youth, geographic regions, and ethnicity (e.g., indigenous or other minority communities)
  5. Monitoring and evaluation of coaching progress and outcomes

Propoals are also encouraged to include key metrics of importance not listed above.

  1. PROPOSAL FORMAT AND CONTENTS

The proposal should include the following:

  1. A workplan that outlines all key activities of the deliverables (as outlined in Expected Deliverables above)
  2. Timeline and key stages of operations (based on Expected Timeline below)
  3. Budget, including detailed breakdown of expected manpower, logistics, and costs expected to run coaching programmes for an initial two years, beginning in 2022 (based on Budget below)
  4. Description of past work and technical expertise that is relevant to this RFP
  5. A list of project team members with their roles in the project and associated qualifications
  6. Proposals must be received prior to 15 January 2022 to be considered. Proposals should be submitted to yeo.siyuan@gpsnr.org for consideration. You may also reach out to this contact for any questions or clarifications
  1. EXPECTED TIMELINE

The work shall begin by February 2022 and the various phases shall be completed in accordance with the dates outlined in the timeline below:

Activity Due Date
RFP publication 10 Dec 2021
Submission deadline for proposals 15 Jan 2022
Evaluation and follow up End Jan 2022
Contract Award Feb 2022
Preparations and Implementation for 2022 Feb – Dec 2022
First Full Review Dec 2022
Preparations and Implementation for 2023 Jan – Dec 2023
Second Full Review Dec 2023

Consultants will also provide fortnightly or monthly progress updates to the GPSNR Capacity Working Group, or on an as-needed basis.

  1. BUDGET

The Platform is anticipating that the total budget of no more than 150,000 USD be allocated to the engagement, depending on the proposed coaching approach.

Payment terms shall be:

  • 30% at the signing of the contract
  • 20% at the first round of coaching conducted
  • 30% upon the First Full Review (Dec 2022)
  • 20% upon the Second Full Review (Dec 2023)
  1. EVALUATION FACTORS

GPSNR will rate proposals based on the following factors:

  1. Responsiveness to the requirements set forth in this Request for Proposal
  2. Relevant past performance/experience of the consultant
  3. Samples of work (e.g., previous training or coaching programmes in Indonesia)
  4. Cost per farmer, and other aspects of the proposed coaching approach or programme
  5. Technical expertise/experience of bidder and bidder’s staff
  6. Proposed timeline of operations
  7. Scale-up plan from 2022 to 2023, and outlook beyond 2023

GPSNR reserves the right to award to the bidder that presents the best value to GPSNR as determined solely by GPSNR in its absolute discretion.

[1] https://sustainablenaturalrubber.org/policy-framework/
[2] https://www.facsglobal.com/wp-content/uploads/2020/12/Final-Rubber-report-2020.pdf
[3] https://sustainablenaturalrubber.org/policy-framework/

Download RFP here
Contact Person: Yeo Siyuan  – yeo.siyuan@gpsnr.org

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