introduction · web viewvaluation framework for areas of concern restoration revised request for...

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VALUATION FRAMEWORK FOR AREAS OF CONCERN RESTORATION REVISED REQUEST FOR PROPOSALS – May 9, 2018

I. Introduction This is a Request for Proposals to develop a cost-effective tool to measure the economic value of environmental restoration projects undertaken in each of Michigan’s Areas of Concern (AOCs), including the two that have been delisted and the 12 that are still in various stages of restoration. The Michigan Department of Natural Resources (DNR), Office of the Great Lakes (OGL) is seeking to fund a research project that will a) determine which ecosystem services individual AOC management actions will affect; b) model the effects of the management actions on the environment; and c) assess the economic value of change in ecosystem services caused by AOC management actions using the benefit transfer method. Examples of management actions include, but are not limited to: sediment remediation, algal bloom management and control, and habitat restoration.

This project will be split into two phases, described in detail below. Approximately $100,000 will be available for phase one; contingent upon the results of phase one, approximately $200,000 will be available for phase two. Funding for this research project will be provided by the Great Lakes Restoration Initiative (GLRI) and administered by the DNR, OGL. Eligible applicants include: educational institutions; federal, state, tribal and local governments; and any other non-profit or for-profit entity with relevant experience.

II. Background In 1987, the Great Lakes Water Quality Agreement (GLWQA) created the AOC program to identify sites with severe environmental degradation caused by industrial, municipal, urban, and agricultural development. Of the 43 sites designated across the Great Lakes region, 14 sites are in Michigan, although two have been removed from the list due to restoration efforts. In 2010, the GLRI was launched to advance Great Lakes restoration, and the increased investment has brought significant funding and resources to the AOC program and increased the number of restoration projects implemented at these sites. The GLRI and AOC program together form a partnership between the State of Michigan, local community leaders, and the federal government that creates and supports on-the-ground actions to enhance the economy, environment, and quality of life within the state. Although the value of this work is evident in the communities where investments and projects have occurred, it has remained largely

Michigan Office of the Great Lakes: 517-284-5035, www.michigan.gov/deqogl

http://www.michigan.gov/deqogl

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unquantified. The purpose of this project is to develop a tool that will allow the OGL to a) communicate the economic value of past and future investments in AOC restoration to citizens and policymakers and b) identify the portfolio of proposed AOC projects that will generate the greatest economic value. This tool will be used to inform the project prioritization process but will not become the sole metric on which decisions are made. The primary goal of the OGL is to ensure a healthy environment, strong economy, and high quality of life for the people of Michigan. Creating a more holistic decision-making process that includes the economic value of restoration will enhance OGL’s ability to prioritize projects in a way that accounts for the social, ecological, economic, and cultural value of water.

III. Project Description The goal of this research project is to develop a tool that can systematically assess the value of changes in ecosystem service functionality. This should be accomplished using coupled ecological and economic modeling. Desired characteristics of the tool include: broad applicability to all Michigan AOCs; the ability to assess the value of changes in ecosystem service functionality for past, current, and future projects; and accessibility of use by OGL staff who do not have formal economic training. Generalizability of the tool is a greater priority to the OGL than highly granular analysis; the ideal tool would rely on a single or a few ecological models that can be applied to many locations rather than constructing individual ecological function models for each of the 14 AOCs. The OGL acknowledges that it may be necessary to allow some simplifying assumptions in the modeling to make the research project feasible within the time and cost constraints. For example, it may be necessary to use coarse-resolution ecological modeling or to rely on stochastic calculations to determine the most likely response of the ecosystems to a given management action. It is preferred that the economic modeling should rely on the benefit transfer method to ensure time and cost feasibility. The desired outputs of the tool include: a) the economic value of the change in each ecosystem service affected by a given management action and b) the aggregated economic value of the change in all ecosystem services affected by a given management action.

This research project will be conducted in two phases:

Phase 1

Preferred elements of the first phase include the following: a) development of conceptual causal loop diagrams that demonstrate the relationships between the OGL’s on-the-ground AOC management actions and ecosystem services; b) an



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assessment of existing ecological modeling tools that can reliably predict changes in ecosystem service functionality as a result of AOC management actions; and c) an analysis of existing primary research to determine the expected depth and precision of the benefit transfer method.

Phase 2

Preferred elements of the second phase of the project include the construction of the tool.

As an example, Figure 1 (below) provides a conceptualized diagram of the desired output of the tool. The white box labelled “Ecological Modeling” demonstrates how the tool will determine the size of each management action’s effect on ecosystem services by first modeling ecosystem functionality. The white box labelled “Economic Modeling” represents the complex function that will be used to support the benefit transfer calculations. The white boxes together represent the desired components of the models. The blue boxes represent the desired outputs of the tool. The outputs of the ecological modeling will be used as inputs to the economic modeling but should still be reported as part of the tool’s final output.

Figure I



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Applications to this RFP should include a detailed scope of work and budget for Phase I and an outlined scope of work and estimated budget for Phase II. At the end of Phase I, the grantee will submit a detailed scope of work for Phase II and a report summarizing the findings of Parts a, b, and c and outlining gaps in the primary research. The OGL will consult with an expert advisory panel to evaluate the scope of work for Phase II and make a final decision regarding funding for Phase II of the project.

The deliverables of the project should be:

Phase I

A series of causal loop diagrams describing the effects of AOC program management actions on ecosystem services

A recommendation for the most cost-effective ecological modeling software, program, or platform to support this project

A report summarizing the availability of primary research to inform the benefit transfer calculations for the 14 AOCs in Michigan.

A detailed scope of work for Phase II

Phase II

A tool using coupled ecological and economic modeling that can assess the economic value of changes in ecosystem service functionality due to AOC management actions across the 14 AOCs in Michigan.

IV. Funding Availability A. Eligible Applicants

Non-profit entities with experience in ecological and economic modeling Educational institutions Federal, state, tribal and local units of government

Note: Grants cannot be made to individuals.

B. Ineligible Applicants An applicant for whom any of the following conditions existed in the 12 months prior to the application deadline for this RFP is not eligible for funding:

DNR grant contract terminated Unresolved DNR enforcement actions History of inability to manage or meet DNR contractual terms and conditions



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C. Estimated Grant Amount Phase I: $100,000Phase II: $200,000

D. Match Requirement Matching funds are not required; however, provision of match will be considered.

E. Anticipated Project Award Period Phase I: August 2018-February 2019*Phase II: April 2019-March 2020 (subject to change)

*Due to federal funding requirements, no extension can be offered for Phase I.

F. Ineligible Uses for Grant Funds This grant cannot be used to fund professional development activities or large-scale purchasing of equipment. This grant is intended to fund research for causal loop modeling, ecological modeling of changes in ecosystem service functionality, and economic valuation using the benefit transfer method. It is not intended to fund new restoration projects. Travel expenses should be built into the proposal budget.

G. Application Deadline Complete applications must be received no later than 5:00 p.m. on May 29 , 2018.

H. Application Submittal Applications may be submitted either via e-mail or via the United States Postal Service (USPS).

Submission via e-mail: Attach the application package in Portable Document Format (PDF). The combined size of the files attached to the e-mail cannot exceed 10 megabytes. Applications should be sent to:

Ms. Ginny [email protected]

Submission via the USPS: Provide the application package in PDF format on a USB flash drive (non-returnable) along with a hard copy of the cover letter signed by an authorized representative of the applicant, on the applicant’s letterhead. The package must be postmarked no later than May 29, 2018. Applications should be sent to:



mailto:[email protected]

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Ms. Ginny BerryOffice of the Great LakesDepartment of Natural ResourcesConstitution Hall, 1st Floor South525 West Allegan Street Lansing, MI 48933

V. Information for Applicants Proposal information will not be kept confidential. Grant proposals are considered public information under the Michigan Freedom of Information Act, PA 442 of 1976, as amended.

Successful applicants will be required to enter into a grant agreement with the DNR with standard terms and conditions which are not subject to modifications. Failure of a successful applicant to accept these obligations will result in cancellation of the grant award.

Successful applicants will also be required to provide proof of a successful financial audit for a period ending within the 24 months immediately preceding the proposal due date.

VI. Application Package Applications can be no more than 10 single-sided pages in length with text no smaller than 10-point font size. Maps and illustrations may be included but will be subject to the overall application length limit. A cover letter signed by an authorized representative of the applicant on the applicant’s letterhead must accompany the application. Applications should be addressed as described above.

I. Application Cover Page The cover page should list the project title and information about the applicant. It must clearly state the grant amount requested, match amount provided, if relevant, and total project cost, if greater than the sum of the grant and match amounts. Information about the applicant must include:

Applicant agency or organization name and mailing address Authorized representative’s name, e-mail address, and telephone number Applicant Federal ID# Applicant DUNS # Name, title, and contact information of contact person, if different from that of

applicant’s authorized representative Congressional District, State Senate District, and State House District

numbers of applicant’s location



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J. Proposed Project Summary Provide a brief summary (300 words or less) of the proposed project including the name of the applicant organization and partners, and a preliminary research and modeling plan.

K. Detailed Proposed Project Description The following information is required in the detailed proposed project description:

Project scope and how it addresses the focus of the grant request including the preferred elements of Phase I and Phase II and the desired project outputs

A brief synthesis and application of the literature that will inform the key elements of the project

A description of the expected results of the project and project deliverables Source of match, if applicable

L. Project Tasks and Schedule Please use the table below to create a schedule showing the expected progress and completion of key project tasks by quarter. Display timelines and outcomes for major tasks, target milestones for critical intermediate and final products, key project outcomes, and specific project deliverables. The schedule must show that all tasks will be completed within the project period. Progress will be reported quarterly at the end of 30 days after the end of each quarter.

Tasks Outcome/Deliverable

1.

2.

3.

4.

5.

M. Organizational Capability Describe the qualifications of the individual(s) anticipated to work on the project and the past experience of the applicant in managing grant projects. Provide a brief overview of individual(s)’ publications on related topics.



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N. Detailed Project Budget Download and use one of the following budget forms based on your organization’s approach toward project indirect costs:

Please utilize this budget form if the project does not require any reimbursement of indirect costs: www.michigan.gov/documents/deq/deq-ogl-BudgetProposal-FedandNonFedFunds_536539_7.xlsx

Please utilize this budget form if the project requires reimbursement of indirect costs, but the applicant does not have a Negotiated Indirect Cost Rate Agreement (NICRA). This budget form will calculate the indirect costs utilizing a 10% de minimis rate: www.michigan.gov/documents/deq/deq-ogl-Budget_Proposal-10percent-de-minimis _536541_7.xlsx

Please utilize this budget form if the applicant has a NICRA and is asking for reimbursement of indirect costs. A copy of the NICRA must also be submitted with the application: www.michigan.gov/documents/deq/deq-ogl-Budget-Proposal-NICRAFederally-Negotiated-Rate_536547_7.xlsx

The completed budget spreadsheet file should be included in the e-mail or USB flash drive with the application and will not count toward the 10-page application limit.

VII. Attachments O. Proof of successful financial auditP. Proof that the applicant is not on the federal/debarment list (sam.gov)

VIII. Evaluation Criteria The OGL strongly encourages interested applicants to contact program staff early in the proposal development process for assistance and guidance. Complete applications will be evaluated for funding based on the following considerations:

Likelihood that the proposed project will lead to the development of a tool to measure and value changes in ecosystem service functionality, given the availability of data and primary research

Degree to which the application addresses the preferred elements for Phase I, Phase II and the desired project outputs

Degree to which the application demonstrates systems-thinking and understanding of interdisciplinary modeling concepts

Overall quality and clarity of the application Organizational capability of the applicant to complete the project as proposed



http://www.michigan.gov/documents/deq/deq-ogl-Budget-Proposal-NICRAFederally-Negotiated-Rate_536547_7.xlsx

http://www.michigan.gov/documents/deq/deq-ogl-Budget-Proposal-NICRAFederally-Negotiated-Rate_536547_7.xlsx

http://www.michigan.gov/documents/deq/deq-ogl-Budget_Proposal-10percent-de-minimis%20_536541_7.xlsx

http://www.michigan.gov/documents/deq/deq-ogl-Budget_Proposal-10percent-de-minimis%20_536541_7.xlsx

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Project readiness and feasibility for completion within the specified grant period

Cost-effectiveness Measurability of project results Extent to which the project leverages private and other resources

The OGL will likely request in-person presentations from the top applicants after the initial evaluation has been conducted.

IX. Reporting Requirements and Funding Disbursement The grantee must complete and submit quarterly financial and/or progress reports according to a form and format prescribed by the State and must includ supporting documentation of eligible project expenses.

X. Program Contact If you have any questions or comments regarding the program or the application process, please contact:

Ms. Christina PastoriaOffice of the Great LakesDepartment of Natural Resources(o): 517-284-5053(c): [email protected]

Mr. Rick HobrlaOffice of the Great LakesDepartment of Natural Resources (517)[email protected]





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