Reef Trust Tender – Wet Tropics
Competitive Tender Round Applicant Guidelines
Register interest by: 18 December 2014
Submit Tender applications by: 19 February 2015
To be eligible for consideration:
Register an expression of interest by 2pm [EDST] on 18 December 2014.
Submit Tenders by 2pm [EDST] on 19 February 2015.
Sugar cane farmers can discuss the Reef Trust Tender – Wet Tropics Programme with Terrain
NRM.
For further information, please visit www.terrain.org.au/Projects/Agriculture-andInnovation/Reef-Trust, phone 1800 357 755 or email reeftrust@terrain.org.au.
Terrain NRM will be available for discussion of the Programme on week days during business
hours. If not, please leave a message on the Hotline and Terrain NRM will return the call as
soon as possible.
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Table of Contents
About Reef Trust Tender – Wet Tropics .................................................................................................................................... 4
Background ...................................................................................................................................................................................................................... 4
Objectives ........................................................................................................................................................................................................................... 4
Overview............................................................................................................................................................................................................................. 4
Delivery and governance of the Programme .................................................................................................................................................... 5
Timing ................................................................................................................................................................................................................................. 6
When can Successful Applicants expect to commence their work and for how long? .................................................................. 7
Who and what will the Programme fund? ................................................................................................................................ 8
Who can apply? ............................................................................................................................................................................................................... 8
Who cannot apply? ........................................................................................................................................................................................................ 8
Multiple and group Tenders...................................................................................................................................................................................... 8
What places are eligible for Programme funding? ........................................................................................................................................ 8
Minimum standards of management practice ...............................................................................................................................................10
What is NOT eligible for Programme funding? ..............................................................................................................................................11
Contributions from Applicants ..............................................................................................................................................................................11
How to apply for funding .............................................................................................................................................................. 12
Expression of interest stage ....................................................................................................................................................................................12
Attend an information workshop .........................................................................................................................................................................12
Submit a Tender ...........................................................................................................................................................................................................12
Developing a Tender....................................................................................................................................................................... 14
The Nitrogen Use Efficiency Calculator .............................................................................................................................................................14
Improving nitrogen use efficiency........................................................................................................................................................................14
Tender Price ...................................................................................................................................................................................................................15
Professional advice......................................................................................................................................................................................................15
What to include in the Tender ...............................................................................................................................................................................15
Assessment and selection of Tenders....................................................................................................................................... 17
Assessment process .....................................................................................................................................................................................................17
1. Eligibility of Tenders..............................................................................................................................................................................................17
2. Shortlisting Tenders...............................................................................................................................................................................................18
3. Site visits......................................................................................................................................................................................................................18
Final approval of Tenders ........................................................................................................................................................................................19
Notification of assessment outcomes ....................................................................................................................................... 19
Conditions of funding ..................................................................................................................................................................... 19
The Grant Contract .....................................................................................................................................................................................................19
Commencement date ..................................................................................................................................................................................................20
Payment of funding .....................................................................................................................................................................................................20
Monitoring and reporting ........................................................................................................................................................................................20
Tax implications ...........................................................................................................................................................................................................21
Other laws and approvals ........................................................................................................................................................................................21
Promotion and publicity ...........................................................................................................................................................................................21
Probity ................................................................................................................................................................................................. 22
Disclosure of information ............................................................................................................................................................. 22
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Risk assessment ............................................................................................................................................................................... 23
Conflict of interest ........................................................................................................................................................................... 23
Complaints and disputes ............................................................................................................................................................... 23
Appendix 1: Minimum standards of management practice ............................................................................................. 24
Application and placement of fertiliser .............................................................................................................................................................24
Mill by-products ............................................................................................................................................................................................................24
Calibration ......................................................................................................................................................................................................................24
Fallow legume crops ...................................................................................................................................................................................................24
Soil testing .......................................................................................................................................................................................................................24
Appendix 2: The Nitrogen Use Efficiency Calculator ........................................................................................................... 25
The Nitrogen Use Efficiency Calculator .............................................................................................................................................................25
Hypothetical examples for submitting a Tender ...........................................................................................................................................26
Tender Price ...................................................................................................................................................................................................................28
Notes ..................................................................................................................................................................................................................................28
Appendix 3: Shortlisting Tenders .............................................................................................................................................. 29
Pollutant Reduction Score .......................................................................................................................................................................................29
Environmental Benefits Index ................................................................................................................................................................................29
Appendix 4: Glossary ...................................................................................................................................................................... 31
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About Reef Trust Tender – Wet Tropics
Background
The long term protection and conservation of the Great Barrier Reef (the Reef) is the primary focus of the Australian
Government’s announced $40 million Reef Trust. Reef Trust funds will be invested over the next four years (2014 - 2018)
in a range of projects that address the highest priority threats to the Reef.
One of these threats is runoff from agricultural land in the Reef’s catchments. Pollutants including sediments, nutrients
and pesticides are making their way to the coast and having a detrimental impact on Reef water quality and overall health
and resilience.
Reef Trust Tender – Wet Tropics (the Programme) is a component of Reef Trust that will address the greatest water
quality risk known to the Reef: nitrogen discharge from the Wet Tropics. As a major source of nitrogen discharge has
been linked to fertiliser use in the Wet Tropics’ sugar cane industry, the Programme offers financial incentives to sugar
cane farmers to improve their nitrogen use efficiency and farm sustainability. By improving nitrogen use efficiency at the
farm scale, sugar cane farmers can improve the sustainability of their business and also help ensure less nitrogen is lost
to the Reef.
Reef Trust Tender – Wet Tropics is intended to run from 2014-2018. The Programme is voluntary and up to $4.25 million
(GST inclusive) is available for grants awarded through one Competitive Tender round (the Competitive Tender) in 2015.
Further information on Reef Trust can be found here www.environment.gov.au:reef-trust.
Further information on the Reef Trust Tender – Wet Tropics can be found here: http://www.environment.gov.au/reef-trusttender
and http://www.terrain.org.au/Projects/Agriculture-and-Innovation/Reef-Trust.
Objectives
The objectives of Reef Trust Tender – Wet Tropics are:
•
long-term reduction in nitrogen discharge from the Wet Tropics’ sugar cane industry;
•
increased engagement, participation and uptake of improved nitrogen management practices; and
•
cost-effective investment in improving Reef water quality.
The Programme is not aimed at reducing sugar cane crop productivity.
Overview
A market-based Competitive Tender (reverse auction) will be used to allocate funding under the Programme.
Sugar cane farmers who wish to participate in the Programme can submit a Tender seeking funding to improve their
nitrogen use efficiency. Tenders will be evaluated based on value for money in improving nitrogen use efficiency.
Advantages of using a Competitive Tender include:
•
providing flexibility to sugar cane farmers to determine their Proposed Nitrogen Use Efficiency Target, how they attain
it and the amount of funding to request; and
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•
the use of an objective cost-effectiveness index to compare and prioritise Tenders.
A nitrogen use efficiency calculator has been developed for use by Applicants when preparing their Tenders. This will help
Applicants calculate a tailored nitrogen use efficiency target for their farming system for the purposes of the Programme.
See ‘The Nitrogen Use Efficiency Calculator’ section for more information on the calculator.
Sugar cane farmers who are successful in the Competitive Tender will be invited to enter into a Grant Contract to
implement their improvements for three years. In return, they will receive the funds requested in their Tender.
Applicants can withdraw from the Competitive Tender at any time before signing a Grant Contract.
There are a range of parameters around who and what the Programme will fund which are described in the following
sections.
Delivery and governance of the Programme
The Department of the Environment (the Department) will be responsible for coordinating the Competitive Tender,
assessing Tenders and making recommendations to the Minister for the Environment who will make the final decision
regarding grant funding.
Terrain NRM is contracted by the Department to assist with delivery of the Programme. This includes communicating and
promoting the Competitive Tender, encouraging and supporting participation of sugar cane farmers, organising
information workshops and conducting site visits to assist the Department’s assessment of Tenders. Terrain NRM will also
directly manage each Grant Contract with Successful Applicants and is the primary point of contact for all queries.
Applicants are sugar cane farmers who register an expression of interest and/or who submit a Tender for the Programme.
Successful Applicants are those sugar cane farmers who have entered into Grant Contracts with Terrain NRM following
approval by the Minister for the Environment.
An overview of roles is provided below.
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Department of the Environment
•
Supports Terrain NRM in encouraging participation in the Competitive Tender
•
Assesses Tenders and makes recommendations to the Minister for the Environment
•
Provides Terrain NRM with a list of successful Applicants
•
Monitors performance of Terrain NRM
Terrain NRM
•
Encourages and supports participation
•
Organises information workshops for interested sugar cane farmers
•
Conducts site visits
•
Notifies Applicants whether or not their Tender has been successful
•
Enters into Grant Contracts with
Successful Applicants
•
Monitors performance of Successful Applicants and reports to the Department of the Environment
Applicants (Wet Tropics sugar cane farmers)
•
Registers an expression of interest
•
Develops and submits a tender
Timing
There are two stages to the Programme:
1. a non-binding expression of interest stage for sugar cane farmers to register their expression of interest; and
2. the Competitive Tender where Tenders are considered.
To be eligible for the Competitive Tender, sugar cane farmers must register their interest through the expression of
interest stage by 2pm (EDST) on 18 December 2014.
To be considered for funding, Tenders must be submitted by 2pm [EDST] on 19 February 2015.
For further information, please see the section in this guide on ‘How to Apply for Funding’.
Key steps and their timing are given below.
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Key steps
Timing
Sugar cane farmers register an expression of interest and
information workshops are held
14 October 2014 –
2pm 18 December 2014
Sugar cane farmers receive an information pack
Following registration of an expression of interest
Sugar cane farmers develop a Tender
18 December 2014 – 2pm 19 February 2015
Sugar cane farmers submit a Tender (Competitive Tender
is open)
19 January 2015 –
2pm 19 February 2015
Assessment and approval process
February – March 2015
Terrain NRM conducts site visits for short listed
Applicants
February – March 2015
Applicants are notified of the outcome of their Tender
March 2015
Successful Applicants
are invited to sign a
Grant Contract
March – April 2015
When can Successful Applicants expect to commence their work and
for how long?
Successful Applicants will sign a Grant Contract in March or April 2015. Grant Contracts will commence on the date
Terrain NRM countersigns the document already signed by the Successful Applicant.
Successful Applicants will be engaged from the date the Grant Contract is executed to June 2018 to manage their
nitrogen use efficiency in line with their Grant Contract for this period. This will include implementing agreed nitrogen use
efficiency improvements during 2015, 2016 and 2017.
Successful Applicants will receive an initial payment upon signing their Grant Contract and then receive Grant funds on an
annual basis for three years in accordance with the Grant Contract.
A sample Draft Grant Contract will be available on the Department’s website at: http://www.environment.gov.au/reef-trusttender
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Who and what will the Programme fund?
Who can apply?
To be eligible for funding Applicants must:
•
be a legal entity, such as:
– an individual;
– a legally incorporated organisation;
– a body corporate;
– a partnership; or
– a company.
•
declare they are the owner or occupier of a sugar cane farm (or farms) within the Wet Tropics Natural Resource
Management region (Figure 1);
•
declare they have the authority to make decisions about the management of the sugar cane crops on the farm/s; and
•
have registered their expression of interest by
2pm (EDST) on 18 December 2014.
Who cannot apply?
Applicants are not eligible if they have an overdue final report and/or acquittal for another Department of the Environment
programme. Applicants must declare this is the case at the time of Tender submission.
Multiple and group Tenders
Only one Tender per legal entity will be accepted.
Where a legal entity owns and/or leases more than one sugar cane farm in the target region, they can include more than
one sugar cane farm in their single Tender. In this circumstance, Applicants will be required to provide 3 years of historical
data and current documentation that clearly distinguishes activities related to those individual sugar cane farms covered
by their Tender. Further information regarding documentation requirements are provided under “Payment of funding”.
Group Tenders will not be accepted.
More than one Tender for one sugar cane farm will not be accepted.
What places are eligible for Programme funding?
The Programme will fund legal entities that own and/or operate a sugar cane farm wholly or partly within the Wet Tropics
Natural Resource Management region only (Figure 1).
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Figure 1: Wet Tropics Natural Resource Management Region.
In the case of property boundaries that extend beyond the Wet Tropics Natural Resource Management region, the whole
property will be eligible.
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Minimum standards of management practice
The Programme does not specify the types of activities that Applicants must carry out to achieve their Proposed Nitrogen
Use Efficiency Target.
The Programme does require that Successful Applicants manage their farm in an appropriate manner to help maintain
yield productivity. Neither the Department nor Terrain NRM will be liable to Applicants for any damages or loss of profits
under the Programme or otherwise.
Minimum standards of management practice are not an eligibility requirement for the Programme. However, Successful
Applicants who enter into Grant Contracts must have certain practices in place on their sugar farm/s within the first year
of their Grant Contract, including for example:
•
subsurface fertiliser application;
•
application of mill by-products at a rate less than 100 wet tonnes/hectare;
•
calibrated nutrient application equipment; and
•
routine soil sampling.
Please note that minimum standards regarding fertiliser application rates have been considered in the calculation of
eligible nitrogen use efficiency targets outlined under the ‘Developing A Tender’ section.
Please see Appendix 1 for further details on the minimum standards of management practice.
In addition, within the first year of Grant Contracts, all Successful Applicants will be required to:
•
complete the following Smartcane Best Management Practice (BMP) modules:
– soil health and nutrition management;
– weed, pest and disease management; and
– irrigation and drainage management.
Completion of the three Smartcane BMP modules can be done online and is not expected to take more than three hours.
Module completion will be supported by professional BMP facilitators in the
Wet Tropics. Further information can be found at: http://www.smartcane.com.au.
In addition, before the end of the Grant Contract (by June 2018), all Successful Applicants will be required to prepare a
nutrient management plan. Further information on nutrient management plans and available support can be found at:
http://www.terrain.org.au/Projects/Agriculture-and-Innovation/Reef-Trust.
Beyond the minimum standards of management practice identified, Applicants have the flexibility to identify those nitrogen
use efficiency improvement activities that best suit their circumstances and needs. These will be unique to each farming
system. Successful Applicants will be required to complete a short survey on an annual basis for the duration of their
Grant Contracts regarding practice changes that they have put in place.
For further support and information regarding farm management options please contact Terrain NRM.
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What is NOT eligible for Programme funding?
The following criteria regarding nitrogen use efficiency values for the Programme are further described in Appendix 2.
Funding will not be provided for Tenders that:
•
are currently receiving, or have previously received, funding through other Australian or State Government
programmes for activities that are substantially the same. Applicants must declare this is the case at the time of Tender
submission;
•
propose an increase in the rate of nitrogen fertiliser applied to the farming system (compared to historical baseline
rates);
•
propose farm retirement as a measure to improve nitrogen use efficiency (loss of farm or industry productivity is not an
objective of the Programme);
•
request a Tender Price that translates into a price per kilogram of nitrogen reduced that exceeds the confidential
reserve price;
•
propose nitrogen fertiliser application rates which deliver Proposed Nitrogen Use Efficiency Targets less than 0.6 or
greater than 1;
•
propose less than 0.1 of improvement from nominal Baseline Nitrogen Use Efficiency to the Proposed Nitrogen Use
Efficiency Target; or
•
seek greater than $500,000 of funding. This cap has been put in place to ensure funds are allocated and distributed in
an equitable manner across a range of Tenders.
See ‘Developing a Tender’ section for more details.
Contributions from Applicants
Financial contributions from Applicants are not required under the Programme.
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How to apply for funding
Expression of interest stage
If a sugar cane farmer is eligible for funding and interested in participating in the Programme, they must register their
interest during the expression of interest stage by 2pm [EDST] 18 December 2014.
Only those Applicants who register their expression of interest will be eligible to enter the Competitive Tender. Applicants
are encouraged to register their expression of interest online by following the instructions at:
http://www.environment.gov.au/reef-trust-tender.
Interest can also be registered by attending a workshop as outlined in the next section or by contacting Terrain NRM.
Registration of an expression of interest should take no more than 15 minutes.
Once an Applicant has registered their expression of interest, they will receive a receipt number. An information pack will
also be provided as soon as possible following registration. Please note that the receipt number will be required at the
time of Tender submission.
Attend an information workshop
Eligible Applicants are strongly encouraged to attend one of the following information workshops on the Programme or
fully inform themselves of the Programme’s objectives and requirements. Workshops will be held prior to the expression
of interest
period closing.
•
Workshop 1: Monday 1 December 2014 in Mossman
•
Workshop 2: Tuesday 2 December 2014 in Cairns
•
Workshop 3: Wednesday 3 December 2014 in Innisfail
•
Workshop 4: Thursday 4 December 2014 in Tully
•
Workshop 5: Friday 5 December 2014 in Ingham
The workshops are intended to provide an overview of the Programme, familiarise participants with the Competitive
Tender process and provide guidance on how to apply for funding.
Participants will have the opportunity to register their expression of interest in the Programme at this time.
Contact Terrain NRM for further details and interested participants should RSVP for workshops to:
reeftrust@terrain.org.au by 5pm Monday 24 November 2014.
Submit a Tender
When the Competitive Tender period opens, registered Applicants will receive an invitation to submit a Tender.
Applicants may choose to continue with their participation in the Programme at this stage, or opt out. Those Applicants
who decide to participate will need to develop and submit a Tender.
Amongst other things, the Tender application process will request information about an Applicant’s Baseline and
Proposed Nitrogen Use Efficiency Target, current and historical sugar cane yields and nitrogen fertiliser application rates,
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farm management practices and potential risks.
When the Competitive Tender opens, the on-line Tender form can be accessed at: http://www.environment.gov.au/reeftrust-tender
Applicants are encouraged to submit Tenders online. If an Applicant does not wish to, or cannot, apply using the on-line
system, they should contact Terrain NRM at reeftrust@terrain.org.au or by phoning
1800 357 755 to make alternative arrangements.
To be eligible for consideration, online Tenders must be received by 2pm [EDST] on 19 February 2015. To be
considered, hard copy Tenders must be addressed to the Department and postmarked prior to the closing time. They
can be sent to: Reef Trust Tender – Wet Tropics, Biodiversity Conservation Division, GPO Box 787, Canberra, ACT, 2601.
Once a Tender has been submitted, there will be no opportunity to alter it.
Should an Applicant require an extension, they must contact the Department prior to the closing date. Late Tenders will
not be accepted unless exceptional circumstances are established. The Department has no obligation to accept a late
Tender. Any decision by the Department to accept or not accept a late Tender is at the Department’s absolute discretion
and will be final.
The Department may provide copies of Tender forms to its advisers, Terrain NRM or other Government Departments to
assist with or advise on the assessment of Tenders.
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Developing a Tender
The Nitrogen Use Efficiency Calculator
A calculator has been developed for use by Applicants when preparing their Tenders. The calculator will assist Applicants
to understand how their proposed improvement in nitrogen use efficiency will be assessed. The calculator’s main purpose
is to assist sugar cane farmers to:
•
identify an appropriate nominal Baseline Nitrogen Use Efficiency for their farming system using historical yields and
nitrogen fertiliser application rates; and
•
identify a Proposed Nitrogen Use Efficiency Target for the purposes of this Programme.
The calculator is based on the following equation:
Nitrogen Use Efficiency = Cane Yield (tonnes/ha) ÷ Applied Nitrogen Fertiliser (kg/ha)
Appendix 2 provides further information including hypothetical case studies to assist farmers in understanding and using
the nitrogen use efficiency calculator.
To assist farmers when developing their Tenders, an interactive online calculator will be available at:
http://www.environment.gov.au/reef-trust-tender
Improving nitrogen use efficiency
The risk of nitrogen being lost from farms and delivered via waterways to the Reef is determined largely by the difference
between nitrogen fertiliser applied to a sugar cane farm and that used by the
cane crop. Where application rates are in surplus to crop requirements (low nitrogen use efficiency) this surplus is
available for export to the environment.
Low nitrogen use efficiency also results in lower economic returns for sugar cane farmers.
A key to improving nitrogen use efficiency is to supply nitrogen fertiliser at a rate, time and way to maximise the uptake by
the growing cane crop.
There are a number of ways a sugar cane farmer may increase their nitrogen use efficiency. For example, a sugar cane
farmer may increase their nitrogen use efficiency by matching nitrogen fertiliser application rates to expected cane yields
at individual farm or block level. Alternatively, they may consider using lower nitrogen fertiliser application rates combined
with more efficient fertiliser delivery (e.g. enhanced efficiency fertilisers, sub surface application, split application, different
formulation etc).
Applicants should seek advice on options available to them, and to what extent they should increase their nitrogen use
efficiency for their farming system.
For the purposes of the Programme, Tenders must offer nitrogen use efficiency improvement across whole-farm units.
This is necessary to ensure effective monitoring and auditing can take place. Although Tenders will be assessed
according to the impact on the (farm level) Proposed Nitrogen Use Efficiency Target, Applicants should consider how they
manage different parts of their farm in delivering improvements. For example, Applicants may consider tailoring nitrogen
fertiliser management at block level, soil management zones, or other approaches.
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The following criteria regarding eligible nitrogen use efficiency values for the Programme are further described in
Appendix 2.
Please note that the Programme will only fund Tenders that propose nitrogen fertiliser application rates which deliver a
Proposed Nitrogen Use Efficiency Target of between 0.6 and 1. The lower limit represents a modest improvement from
the approximate industry standard and the upper limit has been set to ensure ongoing cane production while allowing
innovation in capturing nitrogen from fallow crop management and mill mud.
In addition, only Tenders with a minimum improvement of 0.1 in nitrogen use efficiency from the nominal Baseline to the
Proposed Nitrogen Use Efficiency Target will be considered. This is set to encourage landholders to consider real change
and allow compliance monitoring.
Where an Applicant’s nominal Baseline Nitrogen Use Efficiency is less than 0.5, the improvement in Nitrogen Use
Efficiency will be calculated from 0.5 for the purposes of the Programme. This value represents the approximate lower
limit of acceptable industry standard.
See Appendix 2 for further information.
Tender Price
Applicants need to determine the level of funding that will allow them to implement their Proposed Nitrogen Use Efficiency
Target – this is the amount of money they will receive if successful in the Competitive Tender.
Applicants need to decide how much funding they are prepared to accept for increasing their nitrogen use efficiency over
three consecutive calendar years. The total Tender Price should include any costs the Applicants require to change their
management practices.
Applicants need to consider how their own view of an acceptable level of payment will place them with respect to the
Tenders of other Applicants.
While the lower the price of a Tender, the greater the chances of success are, it is important that Applicants are realistic
with their Tender and ensure they receive sufficient funding to support them to carry out the proposed changes, noting
that once a Grant Contract has been entered into, Successful Applicants will be required to undertake all activities set out
in that contract.
See Appendix 2 for more information including a hypothetical example of how to calculate a Tender Price.
Professional advice
Applicants should develop a Tender that suits their farm operation, considering issues such as any proposed technology
upgrade, crop requirements, soil type, historic yields, fertiliser formulations etc.
To ensure Tenders best suit the unique circumstances and needs of a farming system, Applicants are strongly
encouraged to seek independent professional agronomic and financial advice including obtaining quotes to ensure all
relevant costs are accounted for. Neither the Department nor Terrain NRM will be liable to Applicants for any damages or
loss of profits under the Programme or otherwise.
What to include in the Tender
As there are limited funds available through the Programme, all Tenders will be assessed and ranked on the basis of
information provided at the time of application.
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Please read these guidelines and the Tender application form (when available) carefully and contact Terrain NRM if
unsure of anything.
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Assessment and selection of Tenders
Assessment process
Tenders will undergo the following process for assessment and progression to funding:
1. Eligibility assessment;
2. Short-listing on a competitive basis; and
3. Verification of Tender information through site visits.
An assessment panel will oversee the Tender assessment process. Panel members will include officers from the:
•
Department of the Environment;
•
Department of Agriculture; and
•
Queensland Department of Environment and Heritage Protection.
The assessment panel will be advised by Terrain NRM, CSIRO, an independent probity advisor and, where required,
technical experts. The assessment will be carried out in accordance with a Probity Plan.
1. Eligibility of Tenders
Tenders will initially be assessed by the Department against the following set of eligibility criteria drawn from the
considerations outlined in the sections ‘Who and what will the Programme fund?’ and ‘How to apply for funding’.
All eligibility criteria must be met in order for the Tender to be considered eligible and progress to the short-listing phase.
Eligibility criteria:
•
the Applicant must have registered their expression of interest by 2pm [EDST] 18 December 2014;
•
the Tender must be received by the Department or postmarked by 2pm [EDST] 19 February 2015 as outlined in the
section ‘How to apply for funding’;
•
the Tender must be submitted on the Programme’s Tender form whether online or in hard copy;
•
the Applicant must be an eligible legal entity as outlined in the ‘Who can apply’ section;
•
there must be only one Tender per legal entity;
•
the Tender must not be a group Tender;
•
there must be only one Tender per sugar cane farm (whole-farm management unit);
•
the Tender Price must be equal to or less than $500,000;
•
the Applicant must have agreed with the closing Tender declarations;
•
the Tender must specify a Proposed Nitrogen Use Efficiency Target of between 0.6 and 1; and
•
the Tender must offer a minimum improvement of 0.1 from the nominal Baseline Nitrogen Use Efficiency to the
Proposed Nitrogen Use Efficiency Target.
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2. Shortlisting Tenders
Tenders deemed eligible will be assessed against each other on a competitive basis using a Pollutant Reduction Score
and Environmental Benefits Index.
The Pollutant Reduction Score and Environmental Benefits Index have been developed for the Programme by the CSIRO
and will be used by the Department to determine the relative cost-effectiveness of competing Tenders.
Tenders will be ranked in order of Environmental Benefits Index. Those that offer the greatest value for money (i.e. are
most cost-effective) will be prioritised for funding. This process facilitates the fair and efficient allocation of public funds,
ensuring investment occurs where the greatest environmental benefit can be achieved for least cost.
Appendix 3 further describes how the Department will use information submitted in Tender application forms to calculate a
Pollutant Reduction Score and Environmental Benefits Index for each Applicant. This has been provided to help ensure
Applicants understand this key step in the Department’s short listing process.
To ensure a cost-effective outcome compared to previous Australian Government water quality programmes, a
confidential reserve price will be set to limit the maximum price paid per kilogram of nitrogen reduced. Those Tenders that
exceed this reserve price will not be short listed for funding.
In order to fully consider the benefits and risks of a Tender, the assessment panel may also take into account other
factors, including for example:
•
a geographic spread of grants across the Wet Tropics;
•
potential risks identified by the Applicant in their Tender form;
•
the performance history of known Applicants;
•
an Applicant’s rationale behind their Proposed Nitrogen Use Efficiency improvement;
•
whether the Applicant has received funding for the same activities through previous government programmes.
Applicants must make a declaration regarding this at the time of Tender submission;
•
whether the Applicant has been previously convicted of an environmental offence under the Environment Protection
and Biodiversity Conservation Act 1999 and / or Queensland environmental laws. Applicants must make a declaration
regarding this at the time of
Tender submission; and
•
any other factors in relation to benefits and risks.
The Australian Government is committed to ensuring that the process for providing funding under the Programme is fair
and in accordance with the Commonwealth Grants Rules and Guidelines.
Applicants will be informed at this stage that they have been shortlisted.
3. Site visits
Terrain NRM will conduct site visits for Tenders that have been shortlisted. The site visits are intended to confirm the
intent and merit of the Tenders and collect information regarding minimum standards of management practice.
Shortlisted Applicants will be contacted by Terrain NRM to organise a site visit, which are expected to take around two
hours.
During site visits, shortlisted Applicants may also be required to provide to Terrain NRM:
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•
evidence verifying their historical yield and nitrogen fertiliser applications rates;
•
evidence verifying their area of cane (hectares); AND
•
evidence verifying their fallow crop and mill by-product practices.
Terrain NRM will inform the Department of the outcomes of the site visits which will influence the outcomes of the final
assessment of Tenders.
Site visits may not be completed for all short listed Applicants. Site visits may be prioritised based on participation in
Smartcane BMP, Reef Rescue, Reef Programme, and training and extension programmes delivered across the Wet
Tropics.
Final approval of Tenders
Following assessment, the Department will make recommendations for funding to the Minister for the Environment (the
Minister).
The Minister’s decision is final and no further negotiations will be entered into.
The competitive nature of the Programme means that, in this case, not all eligible Applicants may be funded.
Notification of assessment outcomes
After the Minister has approved funding, all Applicants will be informed in writing of the outcomes of the Tender.
For those Applicants whose Tenders are unsuccessful, Terrain NRM will be available to provide advice, where requested,
on possible alternative funding programmes that may be available to assist with farm sustainability.
Successful Applicants will be published on the Department’s website once a formal announcement is made.
Conditions of funding
The Grant Contract
Approved Applicants must enter into a legally binding Grant Contract with Terrain NRM within a timeframe specified in the
letter of offer provided to Successful Applicants.
By signing the Grant Contract, Successful Applicants agree to undertake their Proposed Nitrogen Use Efficiency
improvements. The Grant Contract sets out the general reporting, promotional and auditing terms under which funding is
provided and will apply uniformly to all Successful Applicants.
Special conditions may vary between proposals and will be outlined in the project schedule in the Grant Contract.
Successful Applicants will be asked to provide specific data and/or other evidence as part of their reporting requirements,
in a manner agreed and specified in the Grant Contract.
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Penalties for non-compliance with Grant Contracts may comprise make-good and/or repayment elements depending on
the extent of the breach.
A sample Draft Grant Contract will be available on the Department’s website at: http://www.environment.gov.au/reef-trusttender
Commencement date
The Grant Contract commencement date is the date that the signed (by the official contact) Grant Contract is
countersigned by Terrain NRM (the Grant Contract is ‘executed’). Terrain NRM will work with Approved Applicants with a
view to Grant Contracts being in place during March or April 2015.
A copy of the executed Grant Contract will be returned to Successful Applicants for their records.
Payment of funding
Funds will be paid by Terrain NRM following the execution of the Grant Contract in accordance with the agreed
milestones and payment schedules set out in the Grant Contract.
Terrain NRM will pay Successful Applicants based on their agreed and verified increase in nitrogen use efficiency.
It is expected that Successful Applicants will improve their nitrogen use efficiency in the planting and harvest seasons of
2015, 2016 and 2017. Grant funding is intended to be paid in the following installments:
•
10% of the Tender Price at commencement of Grant contract;
•
30% of the Tender in financial year 2015/2016;
•
30% of the Tender in financial year 2016/2017; and
•
30% of the Tender in financial year 2017/2018.
In order to receive the full value of their Tender, Successful Applicants will need to provide evidence to Terrain NRM that
they have achieved their Proposed Nitrogen Use Efficiency Target each year of the Grant Contract.
Before any payments are made, Successful Applicants will be required to provide Terrain NRM with documentation such
as:
•
receipts of purchase as evidence of the amount
of fertiliser purchased and to be applied to the cane crops;
•
records of fallow crop and mill by-product practices;
•
yield data;
•
evidence of meeting the associated obligations of the Grant Contract (e.g. completion of Smartcane modules and
practice change survey/s, implementation of minimum standards of management practice and preparation of a nutrient
management plan); and / or
•
any other conditions of payment as specified in the Grant Contract.
Monitoring and reporting
In line with standard Australian Government audit and evaluation requirements, all grants will be subject to monitoring and
evaluation to ensure they meet specified milestones and performance indicators as detailed in the Grant Contract.
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Monitoring of compliance with Grant Contracts will be carried out by Terrain NRM. Key elements of monitoring will include:
•
reviewing documentation submitted by Successful Applicants including receipts of purchase for fertiliser, mill byproduct and legume crop seeds;
•
conducting random audit site visits each year of the Grant Contracts;
•
checking Successful Applicant’s tax records relating to fertiliser, mill by-product and legume crop seed purchases; and
•
with permission, cross checking data supplied by Successful Applicants with for example, sugar cane mill data.
Terrain NRM will report on compliance and Grant expenditure to the Department.
Successful Applicants will be required to keep necessary records in order to meet their Grant Contract reporting and
documentation requirements.
Tax implications
The Goods and Services Tax (GST) is generally applicable to Grant Contracts where the Applicant is registered for GST
or required to be and the payment is considered subject to GST. If the Applicant is unsure of the GST status of their
organisation and any associated implications, they should contact the Australian Taxation Office or seek independent
advice.
Applicants must provide an Australian Business Number (ABN). This must be for the entity which would receive the
funding and enter into the Grant Contract.
Please be aware that there may be tax implications resulting from receipt of grant funds. It is strongly recommended that
Applicants consult the Australian Taxation Office or seek professional advice on any taxation implications that may arise
from participation in the Programme.
Other laws and approvals
All Applicants must comply with relevant Commonwealth, State, Territory and local authority environmental, heritage and
planning laws, including the National Code of Practice for the Construction Industry. This requirement is specified in the
Grant Contract, and action may be taken to cancel the Grant Contract or retrieve funds where such laws have not been
complied with.
Promotion and publicity
Successful Applicants must agree to acknowledge Australian Government support. Any signage or publications related to
their grant must carry an appropriate Australian Government logo (logo and guidelines for their use will be supplied to
grant recipients). The Australian Government reserves the right to publicly disclose information about the grant in any
promotional material in a manner agreed and specified in the Grant Contract.
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Probity
The Australian Government is committed to ensuring the process for providing grants under programmes is fair and in
accordance with published guidelines.
Fairness and impartiality: Applicants will be treated equally and have the same opportunity to access information and
advice.
Consistency and transparency of process: Tenders will be evaluated in a systematic manner.
Security and confidentiality: the processes adopted for receiving and managing Applicant information will ensure the
security and confidentiality of intellectual property and propriety information.
Identification and resolution of potential conflicts of interest: staff involved in the application and assessment
process are required to declare and address any actual or perceived conflict of interest prior to providing any advice or
assessment.
Circumstances for waiving/amending criteria: Guidelines may be varied from time to time by the Australian
Government as the needs of the Programme dictate. Amended guidelines will be published on the Department’s website.
These Programme guidelines have been developed giving consideration to the Commonwealth Grants Rules and
Guidelines and the Department’s Disability Action Plan.
Disclosure of information
The Department of the Environment is collecting information on the Programme Tender form to assess Tenders for
funding. The Department may publish this information and / or give some or all of this information to:
•
Terrain NRM;
•
State or Australian Government agencies involved in Reef Trust delivery;
•
Smartcane BMP;
•
Individual experts and assessment panels which are responsible for assessing applications;
•
Researchers for evaluation and development of future programmes; and
•
Members of Parliament and the media who may help in publicising successful projects.
The name of the Applicant, site, and the funding awarded may be disclosed in documentation such as media releases and
be made publicly available on the Department of the Environment website and in its annual report.
Information collected may also be used in research on the Programme’s effectiveness. This research may be published.
The Australian National Audit Office may also request access to all relevant activity files.
All information submitted to the Australian Government is subject to the requirements of the Freedom of Information Act
1982 and the Privacy Act 1988.
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Risk assessment
As part of the Tender application process, Applicants should assess the agronomic and financial risks of their proposed
Tender. It is strongly recommended that Applicants seek professional agronomic and financial advice to assist with the
preparation of their Tender.
Conflict of interest
Applicants are required to declare as part of their Tender, existing or perceived conflicts of interest that would, or may
impact on, or prevent the Applicant proceeding with the Tender and/or Grant Contract it may enter into with Terrain NRM.
Where an Applicant subsequently identifies that an actual, apparent, or potential conflict of interest exists or might arise in
relation to their application for funding, the Applicant must inform the Department in writing immediately.
A conflict of interest may exist, for example, if the Applicant or any of its personnel:
•
has a relationship (whether professional, commercial or personal) with a party who is able to influence the Tender
assessment process, such as Terrain NRM or Australian Government staff members; or
•
has a relationship with, or interest in, an organisation, which is likely to interfere with or restrict the Applicant in carrying
out the proposed activities fairly and independently (for clarity, this does not include Terrain NRM).
Complaints and disputes
The Department is committed to best practice in relation to resolving disputes and/or complaints. Should a problem or
complaint be identified, please contact Terrain NRM on 1800 357 755 or by email at reeftrust@terrain.org.au.
All unsuccessful Applicants will have the opportunity to seek feedback on their Tender at the end of the assessment and
approvals process.
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Appendix 1: Minimum standards of
management practice
For the purposes of this Programme, Successful Applicants must have the following minimum standards of management
practice in place on their sugar cane farm/s within the first year of their Grant Contract.
Application and placement of fertiliser
Fertilisers are applied subsurface in or beside the row (i.e. stool split or side banded).
If fertilisers are not applied subsurface, Successful Applicants will need to provide a rationale as to why.
Mill by-products
Mill by-products are applied at less than 100 wet tonnes/hectare. Mill by-products are applied where possible on the row.
Successful Applicants are entitled to continue existing mill by-product applications at previous rate and frequency,
providing it meets the standard above. Successful Applicants with no history of mill by-product application are not to apply
mill by-products for the duration of the Grant Contract.
Calibration
Application equipment is calibrated prior to the season and at each product and batch change.
Fallow legume crops
Successful Applicants are entitled to continue existing fallow legume cropping strategies. Successful Applicants with no
history of fallow legume crops are not to use fallow legume crops for the duration of the Grant Contract.
Soil testing
Soil testing via a National Association of Testing Authorities (NATA) accredited service provider occurs within 12 months
prior to the commencement of a new plant cane crop.
Additional information is available in fact sheets found at: http://www.terrain.org.au/Projects/Agriculture-andInnovation/Reef-Trust
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Appendix 2: The Nitrogen Use Efficiency
Calculator
The Nitrogen Use Efficiency Calculator
For the purposes of this Programme, Nitrogen Use Efficiency is calculated as:
Nitrogen Use Efficiency = Cane Yield (tonnes/ha) ÷ Applied Nitrogen Fertiliser (kg/ha)
The improvement in nitrogen use efficiency will be calculated from an Applicant’s nominal Baseline Nitrogen Use
Efficiency. The nominal Baseline Nitrogen Use Efficiency will use the Applicant’s average Farm Yield Potential as the
Cane Yield (tonnes / ha) and the average of the last three years of the Applicant’s actual nitrogen application rates as
Applied Nitrogen Fertiliser (kg/ha).
To calculate an appropriate average Farm Yield Potential, Applicants are encouraged to select the highest block cane
yields that their farming system has reached over the past 15 years. Farm Yield Potential is then the aggregate of the
individual block yield potentials divided by area of cane grown in hectares. Table 1 indicates the process by which an
Applicant may go about selecting an average Farm Yield Potential.
Table 1: Hypothetical demonstration of how an Applicant may calculate an average
Farm Yield Potential for the purposes of the Programme.
Therefore:
•
assuming an Applicant’s Farm Yield Potential is 80 tonnes / ha; AND
•
their average nitrogen fertiliser application rate1 for the past three years is 1602 kg / ha; THEN,
•
their nominal Baseline Nitrogen Use Efficiency is = 80 (tonnes/ha) ÷ 160 (kg/ha) = 0.50 tonnes/kg nitrogen
Now that an Applicant has calculated their nominal Baseline Nitrogen Use Efficiency, it is possible for them to consider
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how they would like to improve their Nitrogen Use Efficiency for the purposes of the Programme.
Some hypothetical examples are provided below to demonstrate how an Applicant may go about identifying their
Proposed Nitrogen Use Efficiency Target. Please note that for the purposes of this Programme, nominal Baseline and
Proposed Nitrogen Use Efficiency values reflect the amount of mineral nitrogen fertiliser applied, not other potential
sources of nitrogen (such as legume cover crops and mill mud). Other sources of nitrogen can however be considered
when estimating these values as demonstrated in Example 3 below.
1
For the purposes of the Programme, nitrogen fertiliser application rate is the average rate (over the past three years) of mineral
nitrogen fertiliser that Applicants have applied to their cultivated sugar cane crops/area. Please note that this must reflect the
actual mineral nitrogen rate (kg/ha) of fertiliser blends used (i.e. the specific mineral nitrogen content of fertiliser blends applied to
the cane crops, not simply the total fertiliser applied, which will consist of other elements). Applicants will need to provide
evidence of their historical nitrogen fertiliser application rate (e.g. tax records for all fertiliser purchases over the last 3 years).
2
This rate was calculated using the existing Six Easy Steps approach based on District Yield Potential. The District Yield Potential
for the Wet Tropics is 120 tonnes cane /ha. This is the maximum expected in the region. The rate was calculated using the Six
Easy Steps multiplier as: 1.4 kg of nitrogen fertiliser per hectare for every tonne of cane up to 100 tonnes/hectare PLUS 1.0 kg of
nitrogen fertiliser per hectare for every tonne over 100 tonnes/hectare. In this example, the nitrogen fertiliser rate reduction for
soil Carbon has been ignored for simplicity and because it is assumed to be the same before and after the management change.
Hypothetical examples for submitting a Tender
There are a number of ways a sugar cane farmer may increase their nitrogen use efficiency depending on their current
farming system and the options they would like to consider. For example:
1. Most sugar cane farmers will have Farm Yield Potentials below the District Yield Potential target of 120 tonnes/ha used
to calculate fertiliser rates in the example above. If an Applicant has previously calculated nitrogen application rates
using District Yield Potential then using a Farm Yield Potential to calculate a lower nitrogen application rate should
supply adequate nitrogen to the sugar cane crop while avoiding any potential yield loss.
2. Many sugar cane farmers have increased nitrogen use efficiency in the Wet Tropics by better matching nitrogen
fertiliser application rates to crop nitrogen demands by using split nitrogen application, enhanced efficiency fertilisers
and, in the case of waterlogged soils, raised beds.
3. A number of sugar cane farmers have increased nitrogen use efficiency by replacing Farm Yield Potential (as above)
with a target yield for each block or soil management zone based on the highest yields achieved for those blocks or
zones over the last 15 years. The nitrogen fertiliser application rate matched to the block or soil management zone
yield potentials should also reflect crop stage (plant cane and early ratoons may have a higher yield potential than
older ratoons or late cut cane) and the nitrogen contribution from legume fallow crops and mill mud.
Example 1: Using Farm Yield Potential
Instead of calculating nitrogen fertiliser application rates based on District Yield Potential, an Applicant chooses to
calculate their nitrogen application rates based on their average Farm Yield Potential as described above.
In the example provided above, the Farm Yield Potential was 80 tonnes /ha.
Using the existing Six Easy Steps Multiplier approach to calculate application rates for Farm Yield Potential, the new
nitrogen application rate is 112 kg / ha (80 tonnes / ha multiplied by 1.4 kg nitrogen fertiliser / hectare = 112 kg / ha).
The Applicant’s Proposed Nitrogen Use Efficiency Target is therefore calculated as:
Proposed Nitrogen Use Efficiency Target = 80 (tonnes/ha) ÷ 112 (kg/ha) = 0.71 tonnes/kg nitrogen
Therefore, by adopting this approach, the nitrogen fertiliser applied per hectare is reduced by 48 kg of nitrogen/ha/year
(160kg/ha MINUS 112kg/ha) and nitrogen use efficiency is improved by 0.21 (the difference between 0.71 and the
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nominal Baseline Nitrogen Use Efficiency for this farm of 0.5).
As the chosen Farm Yield Potential is based on actual historical yield data, the proposed reduction in nitrogen fertiliser
applied should not result in a loss in productivity for the Applicant.
As previously outlined, although Tenders will be assessed according to the impact on the farm level Proposed Nitrogen
Use Efficiency Target
(e.g. 0.71 tonnes/kg nitrogen in this example), Applicants should consider how they manage different parts of their farm in
delivering the proposed improvement. For example, Applicants may consider tailoring nitrogen fertiliser management at
block level, soil management zones, or other approaches. So long as the Proposed Nitrogen Use Efficiency Target is met
at the whole-farm level, Successful Applicants have flexibility to adjust their fertiliser management to suit their needs at the
sub-farm level. The requirement for Tenders to offer nitrogen use efficiency improvement across whole-farm units is
necessary to ensure effective Programme monitoring and auditing can take place.
Example 2: Increasing nitrogen use efficiency by improved management
An Applicant has a Farm Yield Potential of 80 tonnes /ha and is already applying nitrogen fertiliser according to this Farm
Yield Potential (112kg/ha as calculated using the Six Easy Steps Multiplier). The Applicant considers that the nitrogen
losses factored into the nominal Baseline Nitrogen Use Efficiency of 0.71 tonnes / kg nitrogen can be reduced by 20%
using enhanced efficiency fertilisers so that nitrogen fertiliser supply better matches crop demand. The Applicant therefore
calculates that nitrogen fertiliser applied in the enhanced efficiency formulation can be reduced by 22 kg /ha (i.e. 20% of
112 kg /ha). This reduction would result in a Proposed Nitrogen Use Efficiency Target of:
Proposed Nitrogen Use Efficiency Target = 80 (tonnes/ha) ÷ 90 (kg/ha) = 0.89 tonnes/kg nitrogen
The proposed approach delivers a nitrogen use efficiency improvement of 0.18 (0.89 MINUS 0.71).
In this example, the Applicant has assessed the proposed reduction in nitrogen fertiliser and identified opportunities to
reduce the application rate with no risk of loss in productivity.
Example 3: Increasing nitrogen use efficiency by careful nutrient targeting
An Applicant has a Farm Yield Potential of 80 tonnes /ha and is already applying nitrogen fertiliser according to this Farm
Yield Potential (112kg/ha as calculated using the Six Easy Steps multiplier). The Applicant considers that the nitrogen
losses factored into the nominal Baseline Nitrogen Use Efficiency of 0.71 tonnes / kg nitrogen fertiliser applied can be
reduced by 27% through a combination of:
•
undertaking further refinement of yield potential based on crop class and crop age at harvest and defined for individual
blocks or management zones within farms; and
•
considering nitrogen potentially available from other sources, like legume fallow crops and mill mud applications, soil
mineralisation etc., in estimating the required nitrogen fertiliser application rate.
They therefore calculate that nitrogen fertiliser applied can be reduced by 30 kg /ha (i.e. 27% of 112 kg /ha). This
reduction would result in a Proposed Nitrogen Use Efficiency Target of:
Proposed Nitrogen Use Efficiency Target = 80 (tonnes/ha) ÷ 82 (kg/ha) = 0.98 tonnes/kg nitrogen
The proposed approach delivers a nitrogen use efficiency improvement of 0.27 (0.98 MINUS 0.71).
In this example, the Applicant has assessed the proposed reduction in nitrogen fertiliser and identified opportunities to
reduce the application rate with no risk of loss in productivity.
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Tender Price
In each of the above examples, Applicants would need to decide how much funding they are prepared to accept for
increasing their nitrogen use efficiency over three consecutive calendar years. The total Tender Price should include any
costs the Applicants require to change their management practices.
For example, if the Applicant decided that they would accept $5000 per year in the examples above, the total Tender
Price for the duration of the three year Tender would be:
$5000 x 3 years = $15,000*
*This figure is hypothetical only and not intended to guide Tender Price. Landholders will need to carefully consider their
own situation (including any costs required to change management) in identifying the costs that they need to include.
Terrain NRM will pay Successful Applicants based on their agreed (and verified) improvement in nitrogen use efficiency.
Important: In accordance with the Grant Contract, Successful Applicants will be paid the value of their Tender
irrespective of their actual cane yield achieved. This is to prevent farmers from being disadvantaged if there is a poor
growing season. Please note however that farmers are strongly encouraged to avoid practice changes that are likely to
reduce their production.
Notes
Applicants are encouraged to calculate Farm Yield Potential based on individual block yield potentials.
To prevent cane yield losses from the use of nitrogen use efficiency values that do not meet optimal crop requirements,
Applicants will not be funded for Proposed Nitrogen Use Efficiency Targets greater than 1.
Similarly, an Applicant’s Proposed Nitrogen Use Efficiency Target must be greater than or equal to 0.6 as this represents
a minimum verifiable improvement from the approximate industry standard.
In addition, Applicants must propose an improvement in nitrogen use efficiency of 0.1 or greater from their nominal
Baseline Nitrogen Use Efficiency to the Proposed Nitrogen Use Efficiency Target.
If an Applicant’s nominal Baseline Nitrogen Use Efficiency is less than 0.5, the improvement in nitrogen use efficiency will
be calculated from 0.5 for the purposes of the Programme. This value represents the approximate lower limit of
acceptable industry standard. Applicants whose nominal Baseline Nitrogen Use Efficiency is less than 0.5 can apply for
funds for the portion of nitrogen use efficiency improvement above 0.5. For example, for a change from 0.4 to 0.6, the
eligible portion of nitrogen use efficiency increase is 0.1.
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Appendix 3: Shortlisting Tenders
Tenders deemed eligible will be assessed against each other by the Department on a competitive basis using a Pollutant
Reduction Score and Environmental Benefits Index. The Department will use information submitted in Tender application
forms to calculate a Pollutant Reduction Score and Environmental Benefits Index for each Applicant in the following way.
Pollutant Reduction Score
The Pollutant Reduction Score (PRS) estimates the pollutant reduction potential of each Tender and will be calculated as
follows:
Pollutant Reduction Score =
(1 ÷ nominal Baseline Nitrogen Use Efficiency)
MINUS
(1 ÷ Proposed Nitrogen Use Efficiency Target)
multiplied by Farm Yield Potential
multiplied by area of cane grown
multiplied by 3 years.
Proposed Nitrogen Use Efficiency Target is the Applicant’s Proposed Nitrogen Use Efficiency Target for the purposes
of the Programme.
Baseline Nitrogen Use Efficiency has been calculated by the Applicant using the nitrogen use efficiency calculator. It is
the nitrogen use efficiency calculated as the Applicant’s Farm Yield Potential divided by the average of the last three
years of nitrogen fertiliser applied to cane crops. Farm yield potential reflects the highest block yields an Applicant’s
farming system has reached over the past 15 years.
See Appendix 2 for further information and hypothetical calculations of the Baseline Nitrogen Use Efficiency and the
Proposed Nitrogen Use Efficiency Target.
Environmental Benefits Index
The Environmental Benefits Index calculates the pollutant reduction potential of each Tender relative to the price
requested:
Environmental Benefits Index = Tender price ÷ Pollutant Reduction Score
Tender Price is the asking price that Applicants identify in their Tender to make the improvement in nitrogen use
efficiency.
Tenders will be ranked in order of Environmental Benefits Index. Those that offer the greatest value for money (i.e. are
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most cost-effective) will be prioritised for funding.
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Appendix 4: Glossary
Applicants
Sugar cane farmers who register their expression of interest and/or who submit a Tender in response to
the Competitive Tender.
Baseline
Nitrogen Use
Efficiency
The nitrogen use efficiency calculated as the Applicant’s Farm Yield Potential divided by the average of
the last three years of nitrogen fertiliser applied to cane crops. Farm yield potential reflects the highest
block yields an Applicant’s farming system has reached over the past 15 years.
Commonwealth
The Commonwealth of Australia.
Commonwealth
Grants Rule and
Guidelines
The overarching Commonwealth grants policy and administrative framework:
http://www.finance.gov.au/publications/fmg-series/3-commonwealth-grant-guidelines.html
Competitive
Tender
The market based mechanism whereby the Department invites Applicants who registered their
expression of interest to apply for funding.
CSIRO
Commonwealth Scientific and Industrial Research Organisation.
Department
The Department of the Environment.
Environmental
Benefits Index
An objective cost-effectiveness index used to compare and prioritise Tenders.
Environmental
Offense
An illegal act which directly harms the environment.
Expression of
Interest
The stage in which sugar cane farmers register their expression of interest to participate in the
Competitive Tender.
Grant Contract
A contract (in the form approved by the Department from time to time) between Terrain NRM and
Successful Applicants for the provision of Grant Funding to Applicants by Terrain NRM in return for the
undertaking of activities by the Applicant to improve nitrogen use efficiency in accordance with the
relevant contract.
Grant Funding
Funding received through this Programme.
Great Barrier
Reef
The areas extending from just north of Fraser Island in the south to the tip of Cape York Peninsula in the
north, including areas from the low water mark on the mainland eastwards past the continental shelf and
includes all islands, and internal Queensland and Commonwealth waters.
Hotline
1800 357 755
Legal Entity
A legal entity, such as:
• an individual
• a legally incorporated organisation
• a body corporate, or
• a company.
Nitrogen
Fertiliser
Application
Rates / Applied
Nitrogen
Fertiliser
Refers to the mineral nitrogen rate (kg/ha) of fertiliser blends (i.e. the specific mineral nitrogen content of
fertiliser blends applied to the cane crops, not simply the total fertiliser applied, which will consist of other
elements).
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Nitrogen Use
Efficiency
Calculator
The calculator developed for use by Applicants when preparing their Tenders.
Pollutant
Reduction Score
An estimation of the pollutant reduction potential of a Tender.
Programme
The Reef Trust Tender - Wet Tropics Programme.
Proposed
Nitrogen Use
Efficiency Target
The Applicant’s Proposed Nitrogen Use Efficiency Target for the purposes of the Programme.
Reef Trust
An Australian and Queensland Government Programme which will provide cost effective, strategic
investment which goes above and beyond existing programmes to address key threats to the Great
Barrier Reef and catchments for the long-term protection and conservation of the outstanding universal
value of the Great Barrier Reef: http://www.environment.gov.au/reef-trust
Short listed
Applicants
Applicants that have submitted an eligible Tender and been short listed for funding.
Six Easy Steps
An integrated nutrient management tool that enables the adoption of best practice nutrient management
on farm. Further information can be found here:
http://www.sugarresearch.com.au/page/Growing_cane/Nutrition/NutriCalc/
http://www.sugarresearch.com.au/icms_docs/191921_SIX_EASY_STEPS_Recommendations_for_Wet_
Tropics_Mossman_to_Tully_coastal_region.pdf
Smartcane Best
Management
Practice (BMP)
An industry best practice system for cane growing:
http://www.smartcane.com.au/home.aspx.
Successful
Applicant
Applicants who are successful under the Competitive Tender process.
Tender
Any Tender submitted by an Applicant in response to the Competitive Tender.
Tender Price
The funding amount nominated by Applicants in their Tender.
Terrain NRM
Terrain Natural Resource Management is contracted by the Department to assist with the delivery of the
Programme.
Wet Tropics
Wet Tropics Natural Resource Management Region which extends from the Bloomfield River in the
north to Crystal Creek in the south and west to include the Atherton Tablelands. See Figure 1.
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