Value chain innovation
Value chain innovation
- Release date:
- Monday 16 December 2024
- Closing time:
- Wednesday 26 February 2025, at 05:00 PM ACT local time
- Enquiry deadline:
- Wednesday 19 February 2025, at 05:00 PM ACT local time
- Industry briefing
- Wednesday, 18 December 2024 at 12:00pm Canberra Local Time
Summary
Due to relatively high costs associated with the Australian grains supply chain, and the various opportunities to add value within it, GRDC is undertaking an open RD&E call aimed at improving the enduring profitability of Australian grain growers.
This Request for Proposal (RFP) process aims to tackle critical challenges and opportunities along the value chain by leveraging external expertise, novel technologies, and insights. It invites proposals within the example topics provided and is also open to additional topics that fall within the nominated scope.
By engaging a diverse range of stakeholders, including technology developers, academic institutions, and industry practitioners, the initiative seeks to drive breakthrough innovations that will enhance the profitability and sustainability along the grains value chain.
Applicants must follow a limited set of guiding principles, communicated to them as part of the tender release, notably that each investment identifies a tangible outcome for Australian grain growers, a clear path to achieving this, and that the benefit is quantifiable.
Offer period
Offers will remain open for acceptance by the GRDC for a period of 6 months after the Closing Time.
Document contact and enquiries
Attention: Contract Administrator, Enabling Technologies
Grains Research and Development Corporation
Email: etcontract.administrator@grdc.com.au
Make all requests for further information or clarification in relation to this procurement in writing (email) prior to 19 February 2025.
GRDC will publish all requests and responses to requests on the GRDC website under Questions and Answers at the bottom of this webpage.
Consortia response
GRDC will accept Tenders from Consortia.
Lodgement of Tender
Submit your Tender response electronically through the Grains Investment Portal.
Applicants are invited to submit their proposal to the Grains Investment Portal using the Word template provided (max 8 pages). The template requires applicants to address evaluation criteria which proposals will be evaluated by.
For the avoidance of doubt, any references to Request for Tender (RFT) Terms and Conditions on the GRDC Website and the Grains Investment Portal should be taken as the Terms and Conditions for this Request for Proposal (RFP).
AusTender
TBC.
Description
Background
There has been a substantial increase in the capacity and speed of execution within Australian grains supply chains over recent years. Record grain harvests are now processed faster and stored efficiently, either on-farm or at upcountry receival sites, enabling large volumes to be delivered swiftly to both international and domestic markets shortly after harvest. This rapid processing capacity has facilitated a quicker response to market demands, particularly allowing stakeholders to capitalise on early price premiums available in international markets before the northern hemisphere’s grain harvest commences.
Engaging with key industry stakeholders, GRDC has gathered practical insights on how to further enhance the capacity and cost-efficiency of Australia’s grain supply chains. Summary recommendations as a result of internal and external consultation covered the following themes:
- Ensuring effective, least-cost grain paths are developed and maintained.
- Encouraging greater automation and innovation in supply chains.
- Ensuring accurate information capture.
Opportunities for innovation
Considering opportunities arising from consultation and in alignment with the GRDC’s RD&E Plan 2023-28, GRDC is approaching the market with a Request for Proposals (RFP) process, aiming to invest in projects where there is a clear path to increasing enduring profitability for Australian grain growers. In particular, the GRDC invites submissions from stakeholders who can offer breakthrough innovations and insights through RD&E and encourages investment outcomes that are practical, cost-effective, avoid duplication and easily integrated into current systems and processes. To achieve these goals, the GRDC is interested in proposals that relate to any section of the value chain, which, for the purposes of the RFP process, extends from point of harvest to final delivery before processing.
The Grow Markets and Capture Value pillar of the GRDC’s RD&E Plan 2023-28 focuses on enhancing the competitiveness and profitability of Australian grain growers by improving post-farm gate efficiency and maximizing value along the supply chain. This involves tackling challenges in grain processing, logistics, storage, and handling to ensure Australian grain remains competitive in global markets while delivering higher returns for growers. By addressing key inefficiencies, this pillar supports the grains industry in accessing, growing, and sustaining markets.
One focus area under this pillar is Lower Post-Farm Gate Costs, which aims to reduce expenses associated with grain processing, transport, and market access. GRDC invests in innovations that improve processing efficiency, reduce barriers to market entry, and streamline certification, quality assurance, and compliance processes. These efforts are designed to make the Australian grains industry more cost-competitive while addressing sustainability and market-driven requirements.
The second focus area, Logistics, Storage, and Handling, emphasizes improving the efficiency, quality, and consistency of grain storage and movement. Investments in this area include developing technologies to minimize grain losses during storage and handling, enhancing logistical infrastructure to streamline supply chains, and supporting advanced storage solutions that preserve grain quality. These initiatives aim to reduce waste, maintain grain value, and ensure seamless delivery to domestic and international markets.
Targeted RD&E addressing these issues can improve cost-efficiency, streamline supply chain operations, and enhance Australia's global market position. Investments in infrastructure planning, transport innovation, and grain handling advancements are crucial for strengthening industry resilience, competitiveness, and grower profitability.
Some project examples include but are not limited to:
1. Developing automated and/or objective quality testing technologies, processes and strategies
Enabling automated and objective grain quality assessments on-farm and along the value chain to improve accuracy and speed, reduce quality disputes, enhance market trust, improve opportunities for value adding on-farm, and increase throughput. Examples include:
- Develop new technological solutions: Develop cutting-edge technologies such as spectroscopy, digital imaging, and automated analysers to achieve rapid, objective, and accurate grain quality assessments that are suitable for implementation in Australian grain supply chains.
- Value adding and differentiation: Development and/or extension of new on-farm grain quality assessment approaches that maximise opportunities to profit through value adding (i.e. on-farm arbitrage) and differentiation strategies.
2. Developing Automated Grain Handling, Processing, and Storage Technologies
Automation in the grain supply chain can improve labour efficiency, reduce operational costs, and enhance work safety. Processes such as handling and transportation may be automated, leading to faster and more reliable grain flow throughout the supply chain. Examples include:
- Automation and robotics: Implement robotic systems for automated sorting, handling, and processing to increase efficiency and reduce labour costs.
- Smart storage: Develop intelligent storage systems that monitor and control environmental conditions, ensuring optimal grain preservation.
- Predictive analytics: Convey results from historical and real-time data analytics to growers that optimise processing and storage operations, overcoming bottlenecks and anticipating issues before they arise to optimise harvest activities on farm.
3. Desktop research, data analysis, and/or tools
This is a broad category that could involve desktop research and/or leveraging or building analytical tools that assist in decision making along the value chain. Examples include:
- Data-driven insights: Using data-driven approaches to Identify opportunities to cut costs and add-value within the grains value chain.
- Risk identification: Identify risks to the value chain and developing strategies to mitigate them to improve resilience and sustainability.
- Brand new innovations: Discovery activities relating to the invention or adoption of new technologies such as AI, automation, and IoT including detailed plans/schematics and expected return on investment.
- Infrastructure insights: Better understanding of the current state of infrastructure along the supply chain, identifying specific opportunities for investments that lead to enhanced grower profitability, e.g., specific road and rail transport upgrades etc.
4. Reducing freight costs for growers
Reducing freight costs for growers can be achieved by optimising transportation routes, improving load efficiency, and utilising technologies that enhance logistics management. Automation and data-driven insights can also help in minimising delays and reducing fuel consumption, leading to overall cost savings for growers. Examples include:
- Optimise transportation routes: Analysis to improve route planning to reduce distance and time, leading to lower fuel and operational costs.
- Enhance load efficiency: Analysis to maximise the use of available space in transportation vehicles or optimise vehicle choice to reduce the number of trips required.
- Logistics management technologies: Analysis for or development of advanced technologies for better tracking, scheduling, and coordination of freight movements.
5. Infrastructure that supports RD&E on value chain innovations
Developing experimental sites, research infrastructure, and comprehensive datasets or resources enhances the ability to test and validate new technologies, supporting innovation and informed decision-making in grain supply chains. These efforts lead to improved efficiency, greater competitiveness, and more robust solutions to industry challenges. Examples include:
- Experimental sites: Establish and maintain dedicated experimental sites for testing and validating new technologies and practices in real-world grain value chain environments.
- Research infrastructure: Invest in advanced research facilities equipped with state-of-the-art tools and equipment to support cutting-edge R&D in grain value chains.
- Data sets and resources: Develop and curate comprehensive datasets and/or resources that provide valuable insights and/or enable training/calibration of analytical models, facilitating evidence-based research and innovation.
6. Developing advanced data collection and traceability systems
Developing advanced data collection, value chain monitoring, and traceability systems enhances the ability to capture and analyse static and real-time information, ensuring better visibility and control across the supply chain. These systems support informed decision-making, help to improve efficiency, and ensure the integrity and quality of grain products. Examples include:
- Data hubs: Create centralized data hubs to collect, store, and manage real-time information from across the supply chain, ensuring seamless access and integration of critical data.
- Data aggregation: Develop industry-good datasets to support improved efficiencies up and down the value chain.
- Decision-making: Develop advanced analytics and decision-support tools that leverage collected data and metrics, empowering stakeholders to make informed, timely decisions that optimise supply chain operations.
7. Biosecurity technologies
In relation to improving outcomes in the value chain, developing biosecurity technologies enhances threat detection, ensures accurate mapping of pest-free zones for better market access, and leverages quality training data to improve detection models. Examples include:
- Pest detection: Deploy advanced surveillance and diagnostic technologies for accurate and reliable pest detection, ensuring evidence of pest-free status and prompt and effective responses in the event of a positive detection.
- Pest distribution datasets: Develop reliable data and auditable data sets to support claims for pest-free place of production, or pest-free zones. These areas support better market access and supply chain outcomes for growers.
- Supporting Resources: Develop systems for generating high-quality imagery from pest and disease samples to train AI/ML detection models. This includes protocols for acquiring, managing, and photographing samples, ensuring reliable, real-world data to improve detection algorithms and support biosecurity claims.
8. Open Category
Open call: Propose projects that do not fall under these examples provided they meet the Guiding Principles and deliver on the stated Outcome.
This open call is not limited to the examples provided. Approaches that clearly address any aspect of value chain innovation as per GRDC RD&E Plan 2023-28 are encouraged.
This Procurement
Collaborative proposals
The technical and innovation challenges in this area are complex. GRDC therefore encourages interdisciplinary and collaborative solutions where it will improve proposed outcomes. Due to the segmented nature of the supply chain, GRDC recommends that applicants consider collaborating with their upstream and downstream counterparts to help ensure proposed innovations address the needs of different supply chain participants. GRDC particularly encourages collaboration with Australian growers or their representative groups.
To help facilitate collaboration, GRDC invites prospective applicants to share their organisational details and a brief description of their interests and capabilities. These details would be available to other prospective applicants that have also opted in, to help them find potential collaborators.
This is an obligation-free process, applicants may choose not to share their details. Applicants that have opted in may also decline to collaborate with any other organisations that have opted in. Applicants may also collaborate with organisations outside of this process to develop and submit proposals.
To opt in, please submit an entry via the online Collaboration Form. GRDC will immediately upload the submitted details to an online list visible to other applicants that have opted in.
Analytics Support
Analytics for the Australian Grains Industry (AAGI) is a GRDC strategic partnership with Curtin University, the University of Queensland, and Adelaide University. AAGI has capabilities across the breadth of analytics applied to grains RD&E, including biometry, bioinformatics, machine learning and artificial intelligence, mathematical and biophysical modelling, and geo-spatial statistics. AAGI involvement is available as an in-kind GRDC contribution to these investments.
To explore options for AAGI involvement, applicants must make enquiries to AAGI during this RFT period and identify potential areas of collaboration as part of their application. Successful applicants will be required to complete an Analytical Collaboration Plan to specify the data to be provided to AAGI and the analytics AAGI will provide. A sample Plan template is available from AAGI. Applicants must make enquiries to the AAGI Director, Dr Nathan O'Callaghan, nathan.ocallaghan@curtin.edu.au. Please note, applicants that request funding for analytics readily available through AAGI must provide a technical and/or value-for-money rationale for not using in-kind AAGI capabilities.
Submission of Proposals
Applicants are invited to submit their proposal to the Grains Investment Portal using the Proposal Template attached to the RFP (max 8 pages). The template requires applicants to address evaluation criteria which proposals will be evaluated by.
Guiding principles for Open Call investments
The following guiding principles are designed to ensure that proposals meet GRDC requirements:
- The work must comprise RD&E activities with an identified outcome for the benefit of Australian grain growers. GRDC is unable to invest in non-R&D infrastructure.
- The benefit to growers must be quantifiable with a clear and tangible path to impact for investment outcomes. Importantly, this includes where investments seek to displace existing or well-established technologies, methods, processes, and/or standards. Applicants should outline in their proposal the approach to achieving path to impact, including evidence of key stakeholder engagement and/or industry acceptance pathways.
- Applicants should be aware that investments under this initiative are not grants. The GRDC looks for proposals that align with its commercialisation principles, expecting benefit sharing upon commercialisation of products and/or services that is proportional to overall development contributions.
- GRDC can do research that informs policy but cannot advocate or author industry policy. Proposed R&D that informs policy must have a clear path to impact.
- Investment under this RFP does not include providing for commercial infrastructure or capital for business ventures.
Scope of Proposals
Innovation RFP Project Categories and Types
Categories:
# | Category | Description | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
A | Technology | Projects where the innovation is new technology, hardware or software. This includes new applications of sensing, automation, and robotics technology. This technology could be a product that growers buy or a service they subscribe to.
| ||||||||||||
B | Other | Projects that do not fit in the categories above. |
Out of Scope:
- Pure evaluation of commercial products: Projects focussed solely on the evaluation of one or more commercial products -- readily available in the Australian market – are out of scope.
- Investing in commercial infrastructure or raising capital for business initiatives. For further details on how GRDC supports business investments, please refer to our GrainInnovate program.
Outcome
By June 2029, value chain innovations are delivered that will achieve a benefit-cost ratio of >4:1 (relative to GRDC investment) for Australian grain growers either through improved revenue or reduced costs.
Outputs
This is an open Request for Proposal (RFP) process designed to attract market-driven thinking on how to deliver the desired outcome in accordance with the Guiding Principles provided in the 'Description' section. As such, there are no prescribed outputs at this stage.
Proposed Budget
The indicative total budget for this RFP process is $13,600,000 GST exclusive.
Proposed Contract & Term
GRDC anticipates contracting under the terms of the GRDC Standard Two-Party Research Contract.
The schedule(s) attached to the contract will detail the project details: the outcomes, outputs, milestones, budget, participating personnel and required intellectual property.
The template Contract containing the proposed terms and conditions is available from the Application resources page on the GRDC website.
It is anticipated that any resultant contract in relation to this procurement will commence with a proposed term of one to five years, depending on the application and its merits.
Conditions for Participation
The following are mandatory conditions with which a Tenderer must comply to participate in this procurement process:
- The Tenderer must be a single legal entity or recognised firm of partners except where the Tender is submitted by a consortium and the Tender specifies that each member of the proposed consortium will be party to the contract.
- The Tenderer and any proposed subcontractor must be compliant with the Workplace Gender Equality Act 2012, the Modern Slavery Act 2018 and any other applicable labour laws and standards in the jurisdiction in which they operate.
- The Tenderer and any subcontractor must not have a judicial decision against it (not including decisions under appeal) relating to employee entitlements and who have not paid the claim.
- The Tenderer and any subcontractor must not be named on the Consolidated List, being the list of persons and entities who are subject to targeted financial sanctions or travel bans under Australian sanction laws, as maintained by the Department of Foreign Affairs and Trade.
- In accordance with the Shadow Economy Procurement Connected Policy, a Tenderer must include a satisfactory and valid Statement of Tax Records (STR). If the total value of all work under any proposed subcontract is expected to be equal to or above $4 million (inclusive of GST), also include a separate satisfactory and valid STR of that proposed subcontractor.
Minimum Form and Content Requirements
The following are the mandatory content and format requirements that the Tenderer must complete and provide to participate in this procurement process:
- Submit Tenders (Word template provided) using the Grains Investment Portal.
- Write Tenders in English and express any measurements in Australian legal units of measurement.
- Budget details must be submitted on the ‘GRDC Budget Template’ provided in the Grains Investment Portal.
Evaluation Criteria
In the table below are the Evaluation Criteria that the Tender Evaluation Team will use to assess the value for money of all Tenders.
Number | Evaluation Criteria | Weighting |
---|---|---|
1 | Description of the project and plan The proposal outlines a comprehensive, realistic, and well-structured plan, including clear objectives, timelines, resource allocation, and risk management strategies. The plan should demonstrate a logical approach to achieving stated deliverables. Outline the following:
| 30.00 |
2 | Value Proposition to Australian grain growers The proposal clearly demonstrates a compelling value proposition, addressing a significant market need or opportunity. It should articulate the unique benefits of the innovation, including the potential for profitability and scalability within the target market. Outline the following:
(i) Measured in $/tonne, $/hectare, $/kilometre etc. Are there any other off-farm, environmental or intangible benefits? (ii) What regions and crops will benefit and to what extent e.g. what volume, tonnes, hectares, kilometres etc? (iii) How often will the grower receive the benefit e.g. once-off, multi-year etc. (iv) What assumptions have been used to determine the above | 40.00 |
3 | Personnel and Team Capability Capability of the project team, including:
| 30.00 |
4 | Risk - The risks inherent in the application including the degree of compliance with the Draft Contract and any modern slavery risks identified during the procurement process, application process and evaluation process, including as a consequence of the review of the GRDC Supplier Questionnaire (if required) and any actual or perceived conflict of interest (unweighted). | 0.00 |
5 | Price - The tendered price (unweighted) including extent of the co-contributions (cash and/or in-kind) to be leveraged against the requested GRDC budget. | 0.00 |
Lodging a Proposal
Submit your Proposal through the Grains Investment Portal by 5:00pm Canberra local time on Wednesday, 26 February 2025
For the avoidance of doubt, any references to Request for Tender (RFT) Terms and Conditions on the GRDC Website and the Grains Investment Portal should be taken as the Terms and Conditions for this Request for Proposal (RFP).
Attachments
Questions and Answers
Q1. How does GRDC handle IP generated through the projects?
A1. GRDC will work with partners on a case by case basis in alignment with our Commercialisation Principles and Intellectual Property Management guidelines but will ultimately prioritise the delivery of benefits to Australian grain growers over the potential for commercial returns to GRDC. For new or existing registered IP and licensing matters, please contact licensing@grdc.com.au.
Q2. Can you please provide examples of how the collaboration sheet has worked in the past?
A2. The collaboration sheet is a new initiative and the intent is to show others who may also be interested in a similar innovation that may provide additional or unique skillsets that could compliment a project. It is entirely an opt-in process which is not required and will not be considered in any evaluations of proposals.
Q3. The collaboration form doesn’t appear to be accessible yet – when will it be live?
A3. 18/12/2024 - The collaboration form is now live. If you are having any technical difficulties, please contact etcontract.administrator@grdc.com.au.
Q4. What are the next steps after submitting a proposal?
A4. After the closing time for applications, all applicants will receive written advice from GRDC of the outcome. For successful applicants, contract negotiations would commence soon after. This process is not intended to be a multi-stage process – the RFP process should progress from application straight to contract negotiations without a need to review scope and go to market again.
Q5. It’s mentioned that evaluating existing products is out of scope - just confirming new innovative value add applications, processes etc for grains etc is acceptable?
A5. Accelerating development of new products and/or adapting them is certainly within scope. Innovations and projects where there is a gap in the market, not duplicating existing products and there is demonstrable value for growers all remain in scope.
Q6. Can you expand on how funds can be used if they are not a ‘grant’?
A6. Applicants should be aware that investments under this initiative are not grants. The GRDC looks for proposals that align with its commercialisation principles, expecting benefit sharing upon commercialisation of products and/or services that is proportional to overall development contributions.
Q7. Can one entity put multiple proposals in?
A7. Yes, there is no limit to the amount of proposals one entity can submit.
Q8. Do proposals have to be specific GRDC regional focus? Or do you see supply chains as being universal?
A8. The answer is both. If there is a region specific issue that needs to be solved, it represents high value for growers and a good return on investment, then GRDC are open to those more regional, local specific projects.
GRDC are also open to more generalised, widespread and extensive projects that span across many regions or aspects of the value chain after the point of harvest.
Q9. Can the lead applicant be an industry partner, such as a commercial company?
A9. Yes. The only restrictions on applicants are listed under Conditions for Participation – industry partners both large and small are encouraged to apply.
Q10. Do we need additional partners for this call, or can we apply as a single entity?
A10. Applications from a single entity will be accepted, as will joint applications that may be facilitated using the Collaboration Form.
Q11. Is any co-investment required, and is in-kind treated the same as cash contributions?
A11. While there are no minimum requirements for levels of co-investment for this RFP, applicants should be aware that investments under this initiative are not grants and co-contributions will be considered as part of the competitive evaluation process. An applicant’s co-investment can be comprised of cash, salaries, and/or other in-kind contributions (e.g. such as equipment or overhead costs).
Q12. We were wondering if Sustainable Aviation Fuels derived from canola would be considered under the Open Area?
A12. Any proposals that can demonstrate value to Australian grain growers through improved revenue or reduced costs, address a gap in the market and are not duplicating existing products, methods, processes, and/or standards will be considered. This is suggestion appears to be within scope.
Q13. Is there a $ value cap on project proposals?
A13. No. While GRDC anticipates investing in more than one project from this procurement, there is no value cap on any one project proposal, apart from noting the total available budget for this procurement is $13,600,000.
Q14. What is the expected funding range per project?
A14. Due to the open nature of this RFP, there is no set funding range on funding per project. All proposals large and small are encouraged.
Q15. What are the timeframes for project completion and expected milestones?
A15. GRDC anticipates projects arising from this procurement to have a duration between 1 to 5 years, but there are no set timeframes for project completion dates. Project milestones are typically proposed by applicants and negotiated in more detail with successful applicants as part of contract negotiation.
Q16. What level of reporting and industry engagement is required?
A16. Milestones are negotiated with successful applicants as part of contract negotiations. Typically, GRDC projects will have 3-4 milestone reports per year, but it varies on a case by case basis. Applicants should demonstrate in their application that they have undertaken enough industry engagement to ensure their approach will have a strong impact for growers, and that they will continue to engage as appropriate during the project.
Q17. I note the following statement in the "Category" section A Technology and would like clarification. It states the product that "growers buy or subscribe to" however isn't this RFP open to projects that benefit growers post farmgate and therefore may not be the buyer of the technology?
Projects where the innovation is new technology, hardware or software. This includes new applications of sensing, automation, and robotics technology. This technology could be a product that growers buy or a service they subscribe to.
A17. This RFP is open to innovations that can demonstrate value to growers post harvest. This includes, but is not limited to, technology that growers could buy or a service they could subscribe to.
Q18. Would a proposal involving workstreams that could be packaged together but could also be delivered separately at GRDC’s discretion be acceptable to GRDC?
A18. Yes, this would be an acceptable format and final project design would form part of contract negotiations process if successful.
Q19. We note the references to collaboration with growers and their representative groups. Does GRDC require co-investment from these groups (including in-kind) as part of the collaboration? Alternatively, is an approach that seeks input, engagement, verification and similar from these organisations seen as more appropriate?
A19. Co-investment is not necessarily required to constitute collaboration. GRDC particularly encourages collaboration with Australian growers, their representative groups and any industry stakeholders that are relevant to the proposal.
Q20. The RFP template doesn’t reference contract compliance, IP management and doesn't require a draft IPPO. Should we include a general overview or provide an addendum to the proposed template?
A20. The template should be completed in its current format and GRDC will consider/clarify any contract compliance and IPPO considerations later in the evaluation, procurement and contracting process.