Greenbelt Fund Regional Food Grant Program Broader Public Sector Grant Stream Program Guidelines 1. Introduction Ontario’s broader public sector institutions—municipal daycares and long-term care facilities, universities and colleges, school boards and hospitals—are a sizeable market opportunity for Ontario farmers. With an estimated $745 million in food and beverage sales made by broader public sector institutions and contract caterers, this sector has the potential to substantially invest in and help sustain agriculture in Ontario. Ontario’s public institutions have often led change, such as implementing recycling programs, developing green building standards, and eliminating trans fats and reducing sodium in high school cafeterias through the School Food and Beverage Policy (2008). The Broader Public Sector Grant Stream puts the public service at the forefront of change once again, encouraging the establishment of new food service models that respond to Ontarians’ desire for fresh and healthy meals that are prepared with local ingredients. This program supports the Ontario government’s jobs and prosperity agenda and Ontario Ministry of Agriculture and Food’s goals of increased competitiveness and productivity and the increased consumption of local foods. Because of its combined buying power and a customer-base that reaches most Ontarians, the broader public sector has the potential to greatly contribute to this vision in sustaining a viable and robust agricultural industry in the province. However, the sector also faces unique challenges in accessing local and local sustainable food and a complex value chain that requires a commitment to buying Ontario food by all partners. The Broader Public Sector Grant Stream enables the sector and value chain partners to work together to foster partnerships that are profitable and sustainable. The Regional Food Grant Program – Broader Public Sector Grant Stream is being led by the Greenbelt Fund with funding provided by the Ontario Ministry of Agriculture and Food and concludes in February of 2015. 2. Program Goals The Broader Public Sector Grant Stream focuses on increasing the amount of Ontario food purchased by public institutions such as hospitals, universities, municipal daycares and long-term care facilities, and more. Its goals are: To increase the amount of Ontario food products purchased by Ontario’s broader public sector, specifically municipal, university, school, and hospital foodservices. To enhance the capacity of the agri-food sector (farms, processors, distributors, and others) to access the broader public sector foodservice industry. 3. Areas of Focus All projects must focus on the goal of achieving an increase in the purchase of Ontario food by the broader public sector and be able to measure the project’s contribution to this outcome. However, we recognize that for this to happen changes are needed along the entire value chain involving producers, processors, distributors, contract caterers, and even the customers served by broader public sector institutions. We are interested in funding projects that fall under at least one of the areas of focus listed below. Projects that incorporate more than one area of focus are encouraged. We also encourage applicants to consider including public awareness and engagement activities in all proposals and support learning across the sector by proactively sharing their results. 2 Please note that where projects are seen as virtually identical in outcomes, the projects requesting the lowest cost share would have priority for funding. 3.1 Commodity Associations Increasing the purchase of local food by public institutions requires industry involvement in increasing the supply and availability of local food to meet the industry’s needs. Most industry associations have a focus on the retail market and do not fully realize the market potential of the foodservice industry. This project aims to help commodity organizations build relationships within the foodservice community in order to better understand its unique challenges, and to help their members navigate their way through it. We are interested in projects that: Establish relationships between commodity organizations, and foodservice distributors, contract caterers, group purchasing organizations, and public institutions. Measure the size of the foodservice market for their specific commodity and assess opportunities to grow market share within the public sector. Analyze the current buying habits of the industry and determine how their members can fill the needs and increase their share of the market. Assist the members of the value chain to promote and market Ontario food with a goal of increasing the tracking, reporting, and increased purchases of Ontario food. 3.2 Food Processing The public sector uses a large proportion of products that are further processed. Many food processors currently do not offer products differentiated on place of origin. This focus aims to encourage food processors to produce processed and prepared foods with ingredients from Ontario. The aim is to create products of value, that offer a point of difference for public institutions with a focus of creating higher quality, safe, healthy food options. We are interested in projects that: Use a value chain approach of working with the end users to develop value added products that meet their needs including price, quality, and value and meet the food safety requirements of the industry. Develop and test products made from Ontario ingredients to create menu options that will be available all year round. Have partners in the broader public sector who are interested in purchasing from the supplier and the supplier has access to their distribution channel. 3.3 Foodservice Distribution Foodservice operators in the food value chain rely on distributors for the supply of their products. It is important that the distributors have identified Ontario products in their offerings. Food distributors can use this opportunity to develop an offering of products that meet their customer’s needs. The focus on purchasing products based on point of origin (Ontario foods) is relatively new for distributors, therefore they need to train internal staff to identify and increase the amount of local foods available to their customers. We are interested in projects that: Work with existing suppliers to identify and increase the amount of local food available. Use internal IT sources to create a tracking system that makes it easy for their customers to order and track the amount of local food they purchase. 3 Provide resources (such as time to build new relationships, workshops on how to find Ontario suppliers, time to meet with industry associations, attend local food meetings/symposiums) for their buyers and sales teams to learn more about Ontario products. Produce promotional and marketing campaigns with strong elements of education for internal staff, which outline the benefits of local food, highlight key potential customers, and relay critical information about the people that produce the products they are selling. 3.4 Foodservice Procurement We seek to fund broader public sector institutions and their foodservice operating partners that are committed to finding ways to maximize their purchase of local food and are able to stand as leaders in their sector. Projects should involve making changes in food service operations, finding creative and innovative solutions to allow for greater use of local foods in menus, tracking changes in Ontario food purchases, and motivating employees and value chain partners to be adaptive and supportive of the project goals. We are interested in projects that: Thoroughly analyze and track foodservice purchases. Work with chefs, staff, foodservice operators, producers and distributors to cooperate to find creative and new ways to maximize local food purchases in their operations. Go beyond product substitution within existing menus and other changes in order to maximize local food purchases. Develop clear and comprehensive local food procurement policies to ensure systemic change within the institution. Develop and deliver training for staff if necessary to incorporate local food into daily menus. 3.5 Regional Aggregation of Products Projects seeking funding for the regional aggregation of local foods should apply to the Market Access Grant Stream of the Regional Food Grant Program. Details on the Market Access Grant Stream can be found at Ontariofresh.ca. 4. Barriers and Challenges Learning from previously funded projects, we have identified a number of barriers that continue to impede increasing the amount of local food in BPS institutions. We have grouped these barriers into four different categories of challenges: Access, People, Policy, and Product. Your application should describe how your project will address one or more of these barriers as described below. 4.1 Access Access to local food continues to be the most important hurdle to overcome. Access starts with problems with food origin identification, and includes the steps along the way that make it difficult to find, sell, and buy more local food. We are interested in projects that: help make local food origin information more readily available to purchasers of food; increase the supply of differentiated local products that provide superior quality and variety; increase the aggregation of local foods in regional settings; and enhance distribution of local food to public institutions. 4 4.2 People People’s mindsets and attitudes can hinder making changes that will lead to increased local food, as can the lack of staff and other resources to make the necessary changes in practices and processes, and the lack of formal and informal communication channels between producers and buyers. We are interested in projects that: design and implement organization-wide processes that affect changes in purchasing and other policies and practices that result in increased local food procurement; help companies and institutions manage change across all departments; and build connections between the agriculture industry and other foodservice value chain members. 4.3 Policy There are often operational policies within BPS institutions that are barriers to increasing the amount of local food. Examples include tendering processes that inadvertently favour large suppliers, highly regimented menu planning that makes it difficult to introduce more local food, and menus that don’t take into account local seasonality. There are also operational policies within distribution and foodservice companies that limit their ability to buy more local food, such as preference for federally inspected meats and liability insurance requirements for producers. We are interested in projects that: modify the request for proposals process to make it easier for producers to participate; develop menu building templates or tools; and make policy changes that address BPS institution requirements for food safety, allergen observation, and nutritional analysis. 4.4 Product There are real and perceived barriers relating to the safety, price, specifications, and seasonality of local foods. There are also promotion/rebate practices of distributors that favour products sold on a national versus regional basis. We are interested in projects that: overcome perceived barriers on price, seasonality, and food safety through education and marketing such as developing a model on how total value of product can overcome price driven models; develop processed products sourced with local ingredients tailored to the needs of BPS clients; and demonstrate new financial models that would incentivize distributors, group buying organizations, and foodservice companies to buy local foods. 5. Requirements In order to be considered for funding under the Broader Public Sector Grant Stream applicants must complete an Application Form and provide the information requested, including details on the project goals and rationale, activities, results, how success will be measured, as well as a full project budget. 5.1 Partnership Requirements All applications must be made by two or more members of the broader public sector food value chain. This is defined as broader public sector institutions, producers, processors, distributors, and contract caterers, or other organizations involved with food or food studies. We also encourage additional partnerships with not-for-profit organizations, educational or training businesses, and others that can contribute to the success of the project. For additional clarity, individuals or individual businesses are not eligible to apply for funds as sole applicants. Project partners include organizations that are actively involved in the completion of the project, and should be included in the proper work plan. 5 5.2 Cost-Share Requirements Projects are cost-shared with the Broader Public Sector Grant Stream contributing up to 75 per cent of the project’s total budget. Lead applicant(s) must make a 10 per cent cash or in-kind contribution to the total project budget. The remaining 15 per cent can be supplied by the applicant, project partners, or other cash or in-kind sources. Funding from other Government of Ontario programs is not eligible when calculating the applicants’ contribution. Funding from other levels of government is, however, (federal or municipal) eligible. Failure to disclose all funding or possible funding sources may cause the termination of the application or Agreement. 5.3 Reporting Requirements To report on results and track progress in meeting the goals of the Broader Public Sector Grant Stream, each funding recipient will complete and submit satisfactory Interim and Final Reports for their project. These reporting requirements will be outlined for each applicant but at a minimum, applicants will be required to report on information such as the value of incremental purchases/sales of Ontario food purchased during the project time, the value of anticipated future purchases/sales as a result of the project, increased number of Ontario products purchased, the number of new partnerships developed as a result of the project, and the number of new suppliers purchasing from. 5.4 Shared Learning Incorporating a diverse and substantial amount of local food into broader public sector institutional foodservices requires trial and error of different approaches, identification and open and frank discussions of key challenges, and supporting leaders in the value chain to help them share what they have learned. We also need to better understand how much local food is currently being purchased by broader public sector institutions and others along the value chain and what the potential is for increasing this amount and the impact on Ontario agriculture. 5.5 Previously Funded Projects Any project that received funding from the previous grant round must demonstrate that their project is not just an extension of their previous work. New applications must demonstrate where there were gaps in their previous project and demonstrate how they will build on previous work accomplished in order to address additional barriers and affect systemic change. 5.6 Budget Expenditure Requirements It is important that all project expenses are fully realized by February 6, 2015. Otherwise, monies left unspent must be returned to the Greenbelt Fund. Copies of paid invoices and proofs of payment must be submitted in order to determine that funds were spent within the project’s time frame. Funding will be subject to a 10 per cent holdback payable upon successful completion of the project and the approval of a final report. Supplies, equipment, or services purchased by the recipient with the Broader Public Sector Grant Stream funds must have gone through a process that promotes the best value for the funds spent. 5.7 Eligible Expenditures The Greenbelt Fund reserves the right to support any appropriate initiative that it deems to be relevant to achieving its goals, including market research, promotional materials, new staff costs, and essential equipment purchases. 6 Costs directly and reasonably incurred before February 6, 2015 may be by the Greenbelt Fund for activities funded under the Broader Public Sector Grant Stream including: Costs of project related goods and services and all related shipping and transportation costs. Costs of developing public communications, advertisements, and notices. Incremental costs of services, such as salaries, benefits, and specific per diem fees for personnel working directly on the development and delivery of the project. Costs of translation into French and any costs related to the Accessibility of Ontarians with Disabilities Act related to communication materials distributed on websites, media, etc. Costs of on-farm equipment or facility upgrades that have demonstrable broad industry application. 5.8 Ineligible Expenditures The following expenditures are not eligible for reimbursement: Any costs incurred prior to signing your grant agreement or after February 6, 2015. Normal overhead costs associated with carrying out the Recipient’s or an ultimate third party recipient’s business, such as the costs of accommodations, utilities, phone, etc. General management costs including board and committee meetings that are not specific to the approved project. Capital costs for the construction of buildings or the acquisition of land. Legal costs. Costs of normal commercial expansion, meaning the costs of labour, acquisition or use of buildings or the acquisition and use of conventional equipment/technologies for the exploitation of established market opportunities. Costs otherwise already covered under any federal and/or provincial and/or municipal programs. Costs associated with undertaking basic research, meaning research aimed strictly for the advancement of knowledge. Costs of alcohol. Costs of international travel. Costs of per diems or gifts. Costs of hospitality for meetings. Costs associated with preparing and submitting the project proposals to the Greenbelt Fund for funding under the Broader Public Sector Grant Stream. Direct income support. 5.9 General Liability Requirements All parties signing Agreements with the Greenbelt Fund are required to have comprehensive general liability insurance with coverage for at least $2 million per occurrence. This insurance must show the Greenbelt Fund as an additional insured on the policy and contain the endorsements specified by the Agreement and is required throughout the term of the Agreement. A Certificate of Insurance will be required to be submitted to the Greenbelt Fund prior to the signing of an Agreement. 5.10 Language Requirements In some cases, communication materials will need to be produced in both official languages. The Greenbelt Fund will work with funding recipients to identify specific products that will require production in English and French. Applicants must ensure these costs are covered in their project budgets. 7 5.11 Financial Statements All applicants must provide the two most recent audited financial statements and a copy of the operating budget for the current year, including expenses and revenues to date for your organization. 6. Application Process and Deadlines Interested applicants must submit a Letter of Intent and budget outline that describes their project. Successful applicants will be invited to submit a full proposal, which will be reviewed by our Board of Directors for final approvals. All projects must be completed by February 2015. Please refer to the Call for Proposals document for further details and a template for a Letter of Intent submission. All grant information is available on Ontariofresh.ca. 7. Review Process Each application will be reviewed by Greenbelt Fund program staff, an advisory panel and the Board of Directors of the Greenbelt Fund. External peer reviewers may also be used to assess individual proposals, as needed. We are committed to achieving the stated goals of the Broader Public Sector Grant Stream and thus we review applications with an eye towards specific results that will help achieve/impact these goals. Applications will be reviewed against the following criteria: Drive Innovation—Change the way food is procured along the value chain to enhance the visibility and increase the purchase of Ontario food by the Broader Public Sector. Create Systemic Change—Implement policy, operational procedures, and ultimately change the way food procurement is undertaken. Driving systemic change brings the value chain together to find solutions that are a benefit to our farmers, manufacturers, distributors, and foodservice operators in the value chain. Excel at Leadership—Project leaders are pioneers and leaders in their community. Through their example, they will show how it is possible to increase the amount of Ontario food in our broader public sector institutions. Demonstrate Sustainability—Projects must demonstrate how the activities conducted during this project will be carried on without continued financial contribution. Provide Knowledge Transfer—Create models of success from which the rest of the industry and/or the BPS can benefit. Applicants must have a clear plan on how they intend to transfer the knowledge gained from their project. Demonstrated Economic Impact—All projects must demonstrate the economic impact their project will have as a direct result of their project. Participants will be required to document the increased sales/purchases of Ontario product as a result of the project. Any questions relating to your application or for more specific information on how to complete your application, contact Franco Naccarato, Program Manager (fnaccarato@greenbeltfund.ca) or Brendan Wylie-Toal, Grant Program Specialist (bwylie-toal@greenbeltfund.ca). 8