Request for Proposals: Business Model Analysis – Centralized Bioethanol Bottling for Clean Cooking
The United Nations Foundation’s Clean Cooking Alliance (CCA) is accepting proposals for Centralized Bioethanol Bottling Business Model Analysis project.
This project shall examine the business models of three clean cooking bioethanol companies, distributing fuel and stoves direct to customers, in the Venture Catalyst portfolio under the CCA Market Strengthening Program. The project aims to build up a holistic view of the prospects of the centralized bottling business model for bioethanol and better direct any future support to this segment of the bioethanol market.
Background of Organization
The Clean Cooking Alliance works with a global network of partners to build an inclusive industry that makes clean cooking accessible to the three billion people who live each day without it. Established in 2010, CCA is driving consumer demand, mobilizing investment to build a pipeline of scalable businesses, and fostering an enabling environment that allows the sector to thrive. Clean cooking transforms lives by improving health, protecting the climate and the environment, empowering women, and helping families save time and money.
The overall objective of this project is to build up a holistic view of the prospects of centralized bottling ethanol business models by understanding key business drivers and better direct any future support to this segment of the bioethanol market.
Scope of Work and Deliverables
To achieve the overall objective this project has been broken down into associated learning objectives, questions and deliverables, detailed below. The scope of the work is across three portfolio companies from CCA’s Venture Catalyst program operating in three separate countries/markets in sub-Saharan Africa.
|Learning Objectives||Research Question||Details||Deliverables|
|1. Understand the unit economics of centralized bottling bioethanol business models (three companies in scope)
|What is the distributor gross margin per litre of bottled bioethanol sold?||o Disaggregate: landed supply cost, duties/taxes, logistics, distribution and retail costs.
*with and without carbon finance revenue and/or results based finance (RBF) if applicable to company.
|Report covering all listed objectives and details.|
|What is the distributor gross margin per single/double burner ethanol stove sold?||o Disaggregate: raw materials/assembly kits, duties/taxes, manufacturing/assembly, distribution, retail costs.
*with and without carbon finance revenue and/or results based finance (RBF) if applicable to company.
|Does the combined unit economics of stove and fuel enable a positive customer lifetime value for the company?|
|What is the minimum scale (liters of ethanol) required to enable the positive customer lifetime value?||o Consider two variables – demand (liters/customer) and number of customers to be understood.|
|2. Understand the impact of market/country specific factors i.e. taxes, tariffs, duties, policies, standards on business model viability.
|Based on the unit economics analysis conducted, which aspect of the market structure is most impacting the company’s profitability?||o Examine bioethanol price competitiveness (against charcoal and/or LPG as appropriate for the market)
o Examine availability to market (domestic and imports)
o Examine affordability of stoves to target customer
o Evaluate awareness of bioethanol cooking in market (if possible)
Align above information on taxes on tool and fuel incl. import and domestic production, VAT,
Sensitivity analysis of the impact of the key factors
|3. Understand differences, challenges, and opportunities across the three company business models.
|Review Business Models – drilling-down into vertical integration with upstream feedstock production, stove importation, localized stove assembly, fuel and stove distribution economics, the role of carbon finance in viability of the model etc.
|Workshop facilitated by consultant with CCA team to review and understand the differences and opportunities across the companies based on the analysis.|
Project Period of Performance
Planned start date January 2023 and aimed timeline of approximately 3-4 months. Planned approaches, milestones and timeline to be detailed in application.
Consultant should have demonstrable experience conducting unit economics and business model analysis.
|10/27/22||As applicable, expressions of interest submitted and clarification questions|
|11/07/22||As applicable, calls with applicants and follow up questions|
|11/28/22||As applicable, in-person meetings/interview process|
|11/30/22||Consultant(s) selected and notified via email|
|01/09/23||Kickoff meeting with selected Consultant(s)|
A detailed budget in US Dollars must be submitted with the proposal. Budget should include both pre-tax and net of tax values. The budget should include direct costs (Personnel, Fringe Benefits, Travel, Sub-Agreements, Equipment, Supplies, etc.), as well as indirect costs (overhead). For indirect costs, please indicate a list of expenses covered by the indirect rate. For all direct cost, please include assumptions that were made to arrive at line item costs (e.g. 2 trips @ $1,500/trip = $3,000 or 20 staff hours @ $40/hour = $800).
Our suggested overall budget range for this project is $80,000-$100,000. Please breakdown the budget in line with the deliverables listed above. Countries in question will be confirmed on email after expression of interest.
If a bid has a mathematical discrepancy, the Alliance may correct the discrepancy and notify the Consultant of the adjustment. In such circumstances, the Consultant may choose to withdraw their bid.
The Clean Cooking Alliance will review all written proposals and may request a phone or in-person interview and/or updated submission to address questions or provide clarification. CCA will use the following criteria in our evaluation.
|Evaluation criteria||Score (1-5)|
|Approach: the analytical framework and methodology answering the project’s key questions and deliverables|
|Subject matter expertise: experience working in sub-Saharan Africa, previous unit economics and business model analysis|
|Project management: achievable action plan that will deliver the project on time and on budget|
|Capabilities and experience: demonstrated firm experience with similar projects|
|Value: the proposed pricing is within budget|
|Value for money: the proposed pricing demonstrates a competitive price and good value for the money|
Intent and disclaimer
This RFP is made with the intent to identify a Consultant to deliver results as described in this RFP. UNF/the Clean Cooking Alliance will rely on the Consultant’s representations to be truthful and as described. The Clean Cooking Alliance assumes it can be confident in the Consultant’s ability to deliver the product(s) and/or service(s) proposed in response to this RFP.
If the Clean Cooking Alliance amends the RFP, copies of any such amendments will be sent to all respondents to the proposal.
Proposal Guidelines and Requirements
- This RFP is open to multiple partners and is a competitive process.
- Proposals received after 10/16/2022 23:59 EST will not be considered.
- The price provided should be in US dollars, and should contain both pre-tax and net of tax values. If the process excludes certain fees or charges, the applicant must provide a detailed list of excluded fees with a complete explanation of the nature of those fees.
- CCA prefers a single point of contact who manages deliverables. If the execution of work to be performed by the Consultant requires the hiring of sub-contractors, the Consultant must clearly state this in the proposal. Sub-contractors must be identified and the work they will perform must be defined. Subcontractors are subject to vetting and approval of UNF/CCA.
- CCA will not refuse a proposal based upon the use of subcontractors; however, we retain the right to refuse the sub-contractors you have selected.
- Provisions of this RFP and the contents of the successful responses are considered available for inclusion in final contractual obligations.
Format for Proposals
Proposals must include applicant signature as well as a signed declaration form. Proposals must include the full legal name of applicant, as well as legal formation and ownership structure (e.g. incorporation certification, tax status and ID, etc.).
Contracting and Compliance
CCA will negotiate contract terms upon selection. A copy of the contract terms and conditions will be provided upon selection. All contracts are subject to review by the UN Foundation’s Business Services and Budget Reporting team. The project will start upon the complete execution of the contract. The contract will outline terms and conditions, scope, budget, and applicable flow down terms. Selected recipient(s) must comply with CCA , United Nations Foundation, and funder compliance requirements. The selected recipient(s) must also undergo detailed legal, financial, and commercial due diligence.
The Consultant understands that the Clean Cooking Alliance has chosen to solicit an RFP for consulting services, and that the Consultant’s response does not guarantee that the Clean Cooking Alliance will enter into a new contract with the Consultant or continue any current contract(s) with the Consultant.
The Consultant agrees that Clean Cooking Alliance may, at its sole discretion:
- Amend or cancel the RFP, in whole or in part, at any time
- Extend the deadline for submitting responses
- Determine whether a response does or does not substantially comply with the requirements of the RFP
- Waive any minor irregularity, informality or nonconformance with the provisions or procedures of the RFP
- Negotiate with all Consultants UNF deems acceptable
- Issue multiple awards
- Photocopy the responses for evaluation/review
This RFP is not an offer to contract. The Clean Cooking Alliance assumes no responsibility for Consultant’s cost to respond to this RFP. All responses become the property of the Clean Cooking Alliance.
The Consultant, by submitting a response to this RFP, waives all right to protest or seek any legal remedies whatsoever regarding any aspect of this RFP.
The Consultant represents that it has responded to the RFP with complete honesty and accuracy. If facts provided in the Consultant’s response change, the Consultant agrees to supplement its response in writing with any deletions, additions, or changes within ten (10) days of the changes. The Consultant will do this, as necessary, throughout the selection process.
The Consultant understands it may receive proprietary and confidential information from the Clean Cooking Alliance during the RFP process (“Confidential Information”). The Consultant and CCA agree to not use Confidential Information for any purpose other than the Consultant’s participation in the RFP process, and to not reveal Confidential Information directly or indirectly to any other person, entity, or organization without the prior written consent of the other party. The Consultant and CCA further agree to exercise all reasonable precautions to maintain the proprietary and confidential nature of Confidential Information where it can best demonstrate its value and capacity to deliver ecosystem-wide, meaningful value.
Grounds for Exclusion
Material misrepresentations, including omissions, may disqualify the Consultant from a contract award.
Submissions will be rejected in the Clean Cooking Alliance’s sole discretion if it finds that the Consultant has engaged in any illegal or corrupt practices in connection with the award.
The Consultant will be excluded from participation for the reasons below. By submitting a proposal in response to the RFP, the Consultant confirms that none of the below circumstances apply:
- The Consultant is bankrupt or being wound up, is having their affairs administered by the courts, has entered into an arrangement with creditors, has suspended business activities, is subject of proceedings concerning those matters, or is in any analogous situation arising from a similar procedure provided for in national legislation or regulations.
- The Consultant or persons having powers of representation, decision-making or control over them have been convicted of an offence concerning their professional conduct by a final judgment.
- The Consultant has been found guilty of grave professional misconduct; proven by any means which CCA can justify.
- The Consultant has not fulfilled obligations relating to the payment of social security contributions or taxes in accordance with the legal provisions of the country in which they are established, or within the United States of America, or those of the country where the contract is to be performed.
- The Consultant or persons having powers of representation, decision-making or control over them have been convicted for fraud, bribery, corruption, involvement in a criminal organization or money laundering by a final judgment.
- The Consultant makes use of child labor or forced labor and/or practice discrimination, and/or do not respect the right to freedom of association and the right to organize and engage in collective bargaining pursuant to the core conventions of the International Labour Organization (ILO).
Principal Point of Contact
Simba Mudimbu, email@example.com.
Deadline for submissions: 23:59EST, 10/27/2022, firstname.lastname@example.org. Proposal submitted as one document in PDF.