Tropical Passionfruit RFP

Contents

1.Introduction

2.Background

2.1.Commercial production of passionfruit

2.2.Territory research

2.3.Varietal details

Panama x edulis clones

‘Pan2’ Panama Red clone

3.The Opportunity

4.Evaluation Criteria

4.1.Eligibility (Mandatory Criteria)

4.2.Entity Stability

4.3.Financial Capacity

4.4.Nursery and Production Capability

4.5.Commercialisation Capability

4.6.Remuneration Terms

4.7.Vision and Innovation

4.8.Biosecurity and Sustainability

4.9.Local Industry participation

5.The RFP Process

5.1.Release and Enquiries

5.2.Submission of Proposal

5.3.Assessment of Proposals

5.4.Shortlisting of Proponents

5.5.Negotiation Process

5.6.Negotiation of Project Agreement and selection of the Successful Proponent

5.7.Timeframes for RFP Process

5.8.Changes during the process

6.Proposal requirements

7.Probity

8.Further information

8.1.Due diligence

8.2.Treatment of information in Proposals

8.3.Communication and enquiries

9.Terms and Conditions of the RFP Process

Glossary - Definitions

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Tropical Passionfruit RFP

1.Introduction

The Northern Territory Economic Development Framework identifies agribusiness as one of the priority sectors for growing the economy. The Department of Primary Industry and Resources (the Department) is committed tothe development ofagribusinesses and delivering greater ‘on farm’ impact of its research work.

The Department’s research has delivered promising new passionfruit varieties adapted to Top End conditions. Commercialisation of these varieties presents a valuable business opportunity and will contribute to the growth of the horticultural industry. This in turn supports those businesses along the value chain and helps the Territory to achieve scale.

This Project to commercialise tropical passionfruit offers the Successful Proponent:

  • Access to hybrid germplasm adapted to tropical conditions and selected for high fruit quality;
  • Germplasm that is free from passionfruit woodiness virus offering extended productivity through longer vine life;
  • Potential for product supply to the high price domestic market window of October/November which has limited supply by southern Australian production;
  • Exclusive access to potential new hybrids currently under assessment; and
  • Access to the Department’s horticultural expertise to assist in project delivery.

The Territory is seeking Proposals from suitably qualified proponents to commercialise tropical passionfruit germplasm. This will require a combination of nursery production, fruit production and marketing expertise. Commercialisation represents theopportunity to capitalise on years of research to produce a locally grown, high quality fruit that looks and tastes superb.

This document:

  • Informs Proponents of relevant information regarding the Project;
  • Invites Proponents to submit a Proposal;
  • Details the criteria for the evaluation of Proposals;
  • Sets out the process the Territory will follow in evaluating proposals and shortlisting Proponents;
  • Details how the Territory will negotiate with the aim of entering into a Project Agreement; and
  • Contains the terms and conditions that will govern the RFP Process.

When reading this RFP, Proponents should ensure they familiarise themselves with the Glossary attached to this RFP which defines capitalised terms used throughout this document.

2.Background

2.1.Commercial production of passionfruit

The majority of commercial passionfruit is grown along the east coast of Australia from far north Queensland to northern New South Wales. There are also smaller production areas in Victoria, Western Australia and South Australia. Horticulture Innovation Australia[1]estimates that there was80 commercial growers in 2014-15 producing 4,269 tonnesof passionfruit.

The passionfruit industry in the NorthernTerritoryhas historically been limited to semi-commercial producers on small blocks. There are currently aroundsix growers in the Northern Territory supplying local markets and supermarkets as part of a mixed horticultural enterprise.

Passionfruit production in the Northern Territory has traditionally focussed on the PanamaRed(Passiflora edulis formaflavicarpa) varieties as they are suited to a tropical climate. The purple edulis hybrid (P. edulis f. edulis x P. edulis f. flavicarpa) varieties grown in other States are known to have a greater depth of flavour and attract considerably higher prices at market. However,this germplasm is not suited to lowland tropical climates.

The market price of fresh passionfruit in Australia peaks in October and November due to limited supply from the traditional Australian production areas. Early indications are that supply of fruit into this seasonal window may be achievable with appropriate production and supply chain development linked with these new hybrid clones.

2.2.Territoryresearch

Research on passionfruit in the Territory dates back to the 1970s by CSIRO and the Department.More extensive research recently undertaken has resulted in further development of the crop.This work has culminated in the development of new hybrid varieties with edulis fruit quality characteristics and the robustness of Panama types which are better adapted to the Northern Territory’s Top End and Katherine regions.

The new varieties have produced uniform, consistent, quality fruit in experimental plantings. Dry season flowering and fruit set is optimised by the absence of rain events, lower humidity and cooler temperatures.This enables potential supplyinto the high price market window of October/November in southern Australian markets.

New varieties have undergone preliminary evaluation by growers on commercial farms in the Darwin and Katherine region.

The production of disease free planting material is essential to successful development of new plant varieties and comprehensive disease surveys in conjunction with virus indexing were completed to ensure virus free plant material and disease tolerant rootstock were developed. The current germplasm was virus indexed using both polymerase chain reaction and standard indicator plant inoculations in early 2016 and shown to be free of viruses associated with the passionfruit woodiness virus complex and considered free of this serious disease. This represents a significant advantage for the Territory whilst freedom can be maintained.

Whilst the Department has taken all reasonable steps to ensure planting material is disease free, the germplasm is not guaranteed to be free from, or susceptible to, other plant pathogens (bacterial and fungal). The Department is aware of a single detection of a suspected bacterial infection in a plant which originated from the Department’s research and has subsequently been destroyed. Visual surveillance of plants that remain from this research trial was also conducted and no further detections were made. Confirmatory diagnosis is currently underway, and prospective Proponents will be offered a fuller description of the results of pathogen detection analysis once available.

To manage the risk of passionfruit woodiness virus entering the Northern Territory in association with passionfruit plants the Plant Health Act (NT), through the Plant Health Regulations, prohibits importations of passionfruit plants into the Northern Territory unless the plants are accompanied by a government certificate or plant health assurance certificate that demonstrates requirements relating to passionfruit woodiness virus have been met.Commercial production using these new varieties could therefore be used to supply interstate wholesale markets and export marketsfree from passionfruit woodiness virus, subject to interstate and international regulations.

2.3.Varietal details

Panama x edulisclones

Field data werecollected from single plant plots of a number of clones in 2015. These were grafted to a selectedflavicarpa rootstock seed line and established at Berrimah Research Farm. Vines were planted in March 2015 and were hand pollinated for the period of the first flowering.

Based on this data and other observations, the Department has selected seven (7) advanced clones of panama xedulis. Selection has been primarily based on fruit quality parameters, yield and harvest period. Fruit, flowering and harvest characteristics for these clones are summarised in Table1.

Figure 1 presents a subjective assessment of external fruit quality rating based on skin colour, shine, smoothness, scarring and fruit shape. Figure 2 presents the cumulative vine yield averaged over five vines of each hybrid. Note that due to the implementation of hand pollination yield data reflects the maximum potential fruit set.

The three most promising selections for the Darwin region are considered to be hybrids 53, 78 and 279.

‘Pan2’ Panama Red clone

A high yielding, good quality clone of Panama Red ‘Pan 2’ has been selected and has also been tested as passionfruit woodiness virus free.

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Tropical Passionfruit RFP

Table 1: Summary of mean 2015 hybrid fruit characteristics

Hybrid no. / 34 / 36 / 53 / 71 / 78 / 241 / 279
Characteristic
Weight (g) / 97 / 77 / 77 / 90 / 90 / 79 / 75
Rind (mm) / 6.5 / 5.5 / 5 / 5.5 / 5.5 / 4.7 / 5
Pulp pH (unit) / 3.2 / 3.3 / 3.2 / 3.3 / 3.3 / 3.2 / 3.1
Brix (o) / 17.4 / 16.7 / 16 / 18.3 / 18.3 / 16.9 / 17.5
Pulp (%) / 47 / 49 / 45 / 44 / 44 / 45 / 37
Pulp weight (g) / 45 / 38 / 34 / 39 / 39 / 36 / 28
Shelf life (days) / 15 / 14 / 13 / 14 / 13 / 14 / 13
Fruit photograph / / / / / / /
Time from planting to flowering / Start
(week number) / 14 / 14 / 11 / 13 / 15 / 10 / 15
End
(week number) / 18 / 20 / 20 / 20 / 20 / 18 / 20
Duration
(weeks) / 4 / 6 / 9 / 7 / 5 / 8 / 5
Time from planting to harvest / Start
(week number) / 22 / 23 / 20 / 22 / 24 / 19 / 23
End
(week number) / 28 / 29 / 28 / 29 / 30 / 30 / 29
Duration
(weeks) / 6 / 6 / 7 / 7 / 6 / 11 / 6
Time from flower to harvest / Duration
(weeks) / 8 / 9 / 9 / 9 / 9 / 9 / 8
Total fruit per vine / (number) / 160 / 202 / 214 / 165 / 178 / 157 / 185
Total yield per vine / (kg) / 12.2 / 13.7 / 13.4 / 13.4 / 13.6 / 11.0 / 12.1
Fruit set / (%) / 50.3 / 47.6 / 43.8 / 53.7 / 48.5 / 55.3 / 44.2
Estimated yield from 900 vines / (tonne per ha) / 11.0 / 12.3 / 12.1 / 12.1 / 12.3 / 9.9 / 10.9
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Tropical Passionfruit RFP

Figure1: External fruit quality rating.
Note that ratings are a combined subjective measurement of skin colour, shine, smoothness, scarring and fruit shape observed over the harvest seasons of 2015 and 2016.

Figure2: Hybrid vine cumulative yield.
Mean single vine yield of five vines for the 2016 harvest season.

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Tropical Passionfruit RFP

3.The Opportunity

The Territory’s contribution to the Project will be the provision of the tropical passionfruit stock and Intellectual Property associated with that stock, as it has been developed to date.

The Territory will provide to the Successful Proponentat a negotiated time:

  • Research quantities of propagules of the 3 Flavicarpa selections.
  • Research quantities of 7 of the 2015 selections and the 1 ‘Pan2’ Panama Red clone.
  • Exclusive access to potential new hybrids currently being selected and assessed. This germplasm has yet to be publicly released and there is early indication of promising selections.
  • Support from the Department’s horticultural officers for a period of 6 months from the commencement of the Project Agreement, capped at 40 hours excluding travel time. Any further assistance will be negotiated on a time and cost basis.

A Project Agreement will be developed to include terms dealing with:

  • Exclusive or shared access to passionfruit propagule;
  • Quantities of passionfruit propagules and the timeframe for provision;
  • The Successful Proponent’s Project Implementation Plan for propagation and production including timeframes for project delivery; and
  • Financial payment to reflect the transfer of plant material, Intellectual Property, forgone point of sale share and naming rights.

4.Evaluation Criteria

Proposals will be assessed against the EvaluationCriteria described in Sections 4.1 to 4.9 below.

4.1.Eligibility (Mandatory Criteria)

An entity (including individuals, companies and organisations) is eligible to participate in this RFP Process if it:

  • Has an Australian Business Number (ABN);
  • Has the capacity to enter into a legally binding agreement with the Territory;
  • Has the demonstrated capacity to participate in the Project; and
  • Has demonstrated accreditation or a pathway to accreditation with the Nursery Industry Accreditation Scheme Australia (NIASA).

This criteria is mandatory. Any proposal that does not meet these mandatory requirements may be deemed non-conforming, set aside and not evaluated.

4.2.Entity Stability

Proponents are to provide details to demonstrate the stability of the entity that will, if successful, enter into a Project Agreement.

Proponents must provide the following information, to the extent it is applicable:

  • Name, address, ABN/ACN number (including all members of any consortium);
  • Name, address, telephone number and email address of the relevant contact person;
  • History and corporate structure of the entity including details of shareholdings;
  • Company office holders;
  • Legal and financial structures/relationships including proposed roles and responsibilities of the parties;
  • Evidence of written agreements between consortium parties (if applicable);
  • An ASIC historical company extract for each entity (made not more than 5 days prior to the closing date for Request for Expressions of Interest); and
  • Any other information reasonably required by the Territory in order to demonstrate the entity’s stability.

4.3.Financial Capacity

Proponents are to provide sufficient details that demonstrate the financial capacity of the Proponent entity proposing to deliver the Project.

Proponents are to provide proposed financial structure, strategy and funding arrangements for the Project and any supporting information to demonstrate availability of funding (e.g. bank letter of support).

4.4.Nursery and Production Capability

Proponents are required to demonstrate capability in both nursery and commercial plant production, either in-house or in partnership with another eligible entity.

Proponents are to provide information to demonstrate skill and experience in successfully undertaking nursery propagation and commercial plant production of a similar size, scale, nature and complexitywithin agreed budget and timeframes.

Proponents are required to demonstrate how they will:

  • Supply fresh fruit into Australian and/or international markets;
  • Propagate disease free, grafted plants for sale into Australian and/or international wholesale and retail nursery markets;
  • Maintain uniformity of Flavicarpa root stock selections for rootstock seed supply; and
  • Maintain passionfruit woodiness virus freedom.

4.5.Commercialisation Capability

Proponents are required to demonstrate capability in commercialisation of comparable horticultural products including:

  • Capacity to adequately resource all aspects of commercialisation;
  • Planned timing and location for production in commercial quantities;
  • Application of innovation and best practice in horticulture projects and delivery; and
  • Any other information to demonstrate capability and experience to deliver a horticultural project.

The following are factors that may be relevant to the Proponent’s submission:

  • Anticipated products and markets;
  • Product branding;
  • Production systems and infrastructure including sourcing of inputs;
  • Product handling and packing systems;
  • Supply chain logistics including cold chain requirements;
  • Value chain partners; and
  • Labour force requirements.

4.6.Remuneration Terms

Proponents are to provide details of their offer for access to the plant material on the basis of exclusive access and shared access (exclusive to all Successful Proponents).

The offer is to reflect Intellectual Property developed to this point, forgone Point of Sale share revenue and opportunity for naming rights on the basis of exclusive access and indicate the timing and method for payment.

Proponents are to provide their approach to sharing and protection of any future Intellectual Property associated with the development of new selections.

4.7.Vision and Innovation

Proponents are encouraged to consider a longer term research and development plan that demonstrates their vision for the passionfruit industry in the Northern Territory, including:

  • Alternative products and markets for germplasm and fruit;
  • Processing of fruit; and
  • Future development of tropically adapted hybrid selections.

4.8.Biosecurity and Sustainability

Proponents are to provide information about how its proposed commercialisation project will identify and manage biosecurity risks as well as the sustainability of their production activities, including:

  • Details of biosecurity management for the commercialisation process, particularly the maintenance and demonstration of passionfruit woodiness virus freedom; and
  • Details of any innovation in production systems including sustainable water design and on-farm distribution.

4.9.Local Industry participation

Proponents are to provide information about how its proposed commercialisation project will incorporate local industry participation and training opportunities including:

  • Details of the Buy Local / NT industry participation, sourcing and buying actions that will be undertaken. Please refer to
  • Details as to how the Proponent will enhance the capabilities of local business including details as to employment opportunities to be created generally;
  • Details of opportunities created for apprentices, training, jobs and local indigenous enterprise and;
  • Any other projected benefits for the local region.

5.The RFP Process

The RFP Process is summarised in Figure 3below and described in more detail atsections 5.1-5.8. The timeframes stated are indicative only and the Territory reserves the absolute discretion to change the timeframes at any time and for any reason.

Figure3: Request for Proposal process and timelines

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Tropical Passionfruit RFP

5.1.Release and Enquiries

The RFP will be advertised for a period of ten (10) weeks.

During this time Proponents are required to register their interest via email to the Project Manager

During this time Proponents are also invited to seek any further information via email to the Project Manager

All information provided by the Project Manager will be posted on the Project Webpage at

5.2.Submission of Proposal

Proposals must be submitted electronically prior to 5:00 pm ACST on 28February 2018. Late submissions will not be accepted.

Only electronic submissions will only be accepted sent to the following address:

Proposals are to be clearly marked:
CONFIDENTIAL
Tropical PassionfruitProject RFP

Proponents are responsible for all costs associated with preparation and lodgement of their Proposal, and participation in the RFP Process.

All Proposals will remain unopened until the closing time.

5.3.Assessment of Proposals

The Territory has established an assessmentpanel to evaluate the Proposals received under the RFP Process for compliance against the requirements set out in this RFP.

Proposals will be assessed against the Evaluation Criteria listed below in Table 2 and described in more detail in section 4.

Table 2: Evaluation Criteria

Evaluation Criteria / Weighting
(per cent)
  1. Eligibility
/ Mandatory
  1. Entity stability
/ 10
  1. Financial capacity
/ 10
  1. Nursery and Production Capability
/ 20
  1. Commercialisation Capability
/ 20
  1. Remuneration Terms
/ 10
  1. Vision and innovation
/ 10
  1. Biosecurity and sustainability
/ 10
  1. Local industry participation
/ 10

The Territory may in its absolute discretion seek clarification of a Proposal or other information provided by Proponents.

5.4.Shortlisting of Proponents