Archived - Transcript – Aquaculture Innovation & Market Access Program (AIMAP)

Welcome to a presentation on the Aquaculture Innovation and Market Access Program, or AIMAP.

The Aquaculture Innovation and Market Access Program is one tool we use to help achieve sustainability in the sea food farming industry across Canada.  

By co-investing along side industry, we are often able to achieve results that are better, faster, and cheaper than results we would expect from other approaches we might take. 

This presentation will give you an overview of best practices for good AIMAP proposals.  

Let’s get started.

Presentation Outline
Today we will take a look at things in this order ....
First we will review some key elements of the AIMAP program.
Then we will look at how the AIMAP evaluation works.
Then we will step through different aspects of AIMAP proposal development.
Finally, we will wrap up for the day.

AIMAP Program Overview
AIMAP is the Aquaculture Innovation & Market Access Program.   In 2008, the Government of Canada announced a $70 million investment over five years to create the conditions for a successful and sustainable aquaculture industry across Canada.   Within this funding, AIMAP invests $4.7 million each year into collaborative industry driven projects that help us meet our sustainability goals.

This investment aims to streamline the regulatory process, strengthen science to create performance-based environmental standards, spur innovation to enhance the sector’s competitiveness and productivity,  and to develop a certification scheme to meet rigorous quality standards in international markets.

For general information about the program, please refer to materials found on the DFO website.  If you Google AIMAP you should find these materials easily.

AIMAP is awarded competitively each year.  Market Access Projects receive a total of $200,000 each year and innovation projects receive a total of $4.5 million each year.

AIMAP has some important dates to remember.
Our call for proposals typically goes out in October
Our closing date, or due date, is typically in early December
And ... Depending on what happens in the first call each year .... We may hold a second call for proposals in April if funds are left over from the first call. 

This presentation will focus on best practices for developing AIMAP innovation projects.  

For information regarding market access proposals, please contact your regional aquaculture coordinator.

Six Types of Innovation
Let’s start our discussion by understanding where AIMAP fits along the innovation continuum.  There are six types of innovation that companies often consider and AIMAP can consider most of them.   In each of these categories, innovation can happen quickly or it can take many years to fully implement.

The AIMAP program is focused clearly on near term opportunities.   AIMAP fund technology development projects and not early stage curiosity based research. 

If your proposal asks a curiosity based question, then AIMAP will not fund your project.   Programs such as the NRC’s industrial research assistance program, or the Natural Sciences & Engineering Research Council’s university based programs are better options for you. 

On the other hand, if your proposal asks a clearly applied research question where the results of your project would produce something that can be directly applied in industry when the project is completed, then AIMAP is a good fit for you.  All successful AIMAP proposals ... will clearly identify how project results will be translated into improved performance in industry ... within one year after the project is completed. 

Projects we support range from the development of equipment or process prototypes, to importing and demonstrating new technologies from outside your region of Canada. 

AIMAP Evaluation Overview
OK .... how does the AIMAP evaluation work ?

First, AIMAP is a competitive process.  Our evaluation goal is to ensure that the best opportunities for the Canadian aquaculture sector ... rise to the top.  

We take proposals through a rigorous evaluation that includes two review panels and final approval from DFO’s senior management. 

We start the review process with a preliminary screen applied to each proposal.  More about that later.

Second, our regional review committee of internal and external experts consider each proposal according to the publically available evaluation guidelines.

Each person on the panel is selected for their unique and relevant field of expertise.

Due diligence efforts at this stage may include various forms of follow up to check on claims made in your proposal.

The committee discuss their different views and make final recommendations as a group.  Not all applications go forward for national review. 

Finally, the Director of the Regional Aquaculture Management Division at DFO recommends which proposals will advance to the National Review.

Third, the national review committee is a team of internal DFO experts. 
Led by the Director of the AIMAP program, proposals are reviewed and final recommendations are put forward to senior management. 
You should be aware that the national review committee often makes an offer of an award that is lower than the original ask from the proponent. 

Finally, DFO’s senior management review all national committee recommendations and give the final ok to proceed.  

Final offers to successful candidates are typically made in March for projects that will start in on or shortly after April 1st  which is the beginning of our fiscal year. 

Step 1- Preliminary Screen
Now, ... let’s take a closer look at the preliminary screen.  This screen is used to ensure that only complete applications are considered.

We check for 7 essential requirements:

First, an applicant must be eligible as laid out in the program guidelines.  Most successful proposals are led by existing aquaculture producers but all projects must result in short term improved performance for the aquaculture sector.

Second, applications must have a minimum cash contribution from industry sources of 10%.  Most successful proposals will have industry cash contributions well above 10%.

Third, the proposal must clearly address the program’s priorities as spelled out in the program guidelines.  Many successful proposals address multiple program priorities. 

Fourth, the proposal must include a clear and concise executive summary.  If successful, this piece of your proposal may later be used in departmental communications.  It must summarize the project, the expected innovation outcomes, and any expected industry impacts. 

Fifth, you must provide us with both digital and hard copies of your proposal. 

Sixth, you must disclose any litigation  may be involved in.  

Finally, we require projects to have all related regulatory approvals in place before they can proceed.  You must include a summary of your regulatory environment and note what is in place at the time of application and provide specific timelines for any outstanding regulatory requirements. 

Self-evaluation
We recommend proponents try an objective self evaluation of their own proposals before submitting your final proposal.  This effort has proven to help applicants improve and refine proposals.

This practice is highly encouraged, but it is not mandatory. 

There is no need to submit the results of your self-evaluation but each DFO regional office would be glad to provide assistance.

AIMAP seek to be fully transparent about its evaluation criteria.  The evaluation criteria used by our review committees can be found in the application guide available on the DFO web site .

Evaluation Criteria
The evaluation criteria are the central tool we use by to drive discussion and reach consensus. 

The criteria follow a stepwise progression going from unacceptable ... to superior. 

“A” does not mean automatic rejection .... and “D” does not mean automatic acceptance.

Evaluators rate proposals based on the information presented in proposal.  Don’t forget to include answers to questions that may seem obvious to you. 

Due diligence may be performed to confirm any claim made in a proposal.   That said, factors such as available time and budget capacity do limit our due diligence efforts. 

Feedback is available to proponents after reviews are completed.  If you are not successful your first time, the feedback you receive may provide you with what you need to try again.

Evaluation Criteria
There are seven evaluation criteria you should be familiar with. 
Let’s go through them one at a time.

1. Commercial Justification
Commercial justification Criteria
In order to get top marks here, .. you need to deliver technology and market assessments, .. with supporting documentation that convincingly makes a strong business case for your proposal.  

2. Scope of Impact
Scope of Impact Criteria
In order to get top marks here, .. you need to deliver proof that your proposal will deliver broad national industry benefits within one year after the project is completed.

3. Plan & Performance Management
Project Plan and Measures of Success Criteria
In order to get top marks here, .. you need to deliver a comprehensive implementation plan with success measures that clearly indicate how the results of your project will meet AIMAP objectives.

4. Project Team
Project Team Criteria
In order to get top marks here, .. you need to assemble a team that have a strong track record of project management and world-class credentials. 

5. Budget
Budget Criteria
In order to get top marks here, .. you need to meet the federal governments high expectations for federal spending and achieving value for money. 

Adding a section to your proposal that includes notes to the budget is one best practice we see. 

Notes to the budget can provide useful details about how each item in your budget links to your project plan and justify why it is necessary for project success. 

6. Industry Cash Contribution
The Industry Cash Ratio is a key financial indicator that helps use make our decisions.

The ranges provided here explain themselves.  The more cash industry puts into a project, the more we perceive they are committed to the project. 

7. Leverage
The Leverage Ratio is another key financial indicator that helps use make our decisions.

Again, the ranges provided here explain themselves.  The more industry puts into a project, the more we believe they are committed to the project. 

Please note that we also factor in the nature of the applicant, .. and discuss their financial capacity to make investments.  Although the ranking criteria is objective, ... the review committee do have the ability to place a lower weight on such criteria where it is deemed appropriate.  

For example, AIMAP invested in a first nations led project where the financial capacity of that community was deemed to be limited. 

Evaluation Criteria Summary
In summary, .. please remember that we have just discussed what it takes to get a top  rankings. 

Don’t discount your potential  ... simply because you know a D ranking looks difficult to reach.

Many proposals are successful even though they score poorly on one or more criteria. 

Remember this is a competition.  Final awards reflect the best proposals we receive in any given call for proposals. 

Proposal Development Overview
Now ... let’s review different aspects of proposal development and drafting. 

In our experience, we observe various common mistakes or oversights people make. 

In this part of the presentation,  we will share some of these tips to help you improve your own proposal. 

Basic Applicant Information
Your basic information is important to us. 

Don’t forget to complete and sign the “submission form” included in the AIMAP applicants guide. 

Be on Time
Being on time is important to us.

Don’t forget to get your proposal to the Regional Aquaculture Coordination Office (RACO) on or before midnight on the closing date.

Project Title
The project title is important to us.

Please use a title that is clear and descriptive.  Avoid acronyms  ... Describe the project not the outcome    ....   The title should tell the public what the project is about.

Executive Summary
The executive summary is important to us.

Your last task should be writing the executive summary. 

It should be a short summary about ½ to 1 page in length that captures the main messages in the proposal.  

It should describe the project and the expected outcomes.   Don’t forget to highlight impacts on others.

A good executive summary will

•  Establishes clear terms of reference stating  the problem and it’s solution
•  It will uses formal but simple business language
•  It will summarize key findings and recommendations

A bad executive summary will 

•  leave out important background information.
•  It may fail to present conclusions or recommendations
•  It may be vague or ambiguous about what the project is or is intended to achieve. 

Introduction
The introduction is important to us.

The introduction is part of the main proposal.  It should clearly provide a detailed description of the project, its objectives, and its ability to meet AIMAP goals.

It should address stakeholder engagement. Stakeholders can be producers, processors, suppliers, industry associations, or aboriginal groups.

You should ask yourself, how are stakeholders involved and how will they benefit?

You should also ask, how will the project benefit the Canadian aquaculture industry at large?

Letters of support can be useful as an appendix but please be sure that your letters say more than stating “this is a good project”.

Good letters of support might include a purchase order conditional on the success of the project.  They might spell out how the results of the project will impact industry profitability or environmental performance.   They might spell out the results of a market survey that shows clear demand for the project to succeed. 

Project Risk Assessment
Risk assessment is important to us.

Throughout the evaluation we try to consider four types of innovation risks. 

Proposals that identify risks and clearly provide mitigation strategies will be viewed more highly than those that don’t.   Every good project manager needs to understand and plan for risk. 

Technology Assessment
It is important to provide a solid assessment of all technology risks with supporting back ground information.

You need to deliver an overview of the proposed innovation and its opportunity to serve the Canadian aquaculture sector.

A SWOT analysis delivers insight into strengths, weaknesses, opportunities and threats.

A Gap analysis of the innovation can also be very useful.

As background information:

3rd party validation or expert testimonials about the innovation and its potential impacts can be very useful.

Supporting patent searches and literature searches can be very useful.
Providing a history of past funding support for the innovation can be very useful. 

Technology Adoption Projects
Technology Adoption Projects are a unique type of project that we see from time to time. 

AIMAP will assist companies with adopting and demonstrating technologies that are new to the country or new to your region of Canada.

Applicant must clearly demonstrate how the technology will benefit the industry and how the results will be shared with the public.

Market Assessment
It is important to provide a solid assessment of all market opportunity.

You should deliver an overview of the market for the product or service you sell.

You should also deliver an overview of the market for the technology or innovation you plan to apply to your business.

Supporting documentation around your claims about market opportunities are important.

Include material that clearly shows how your project will fit with your business plans

Include material that clearly describes your commercialization path?

Some examples of material that has helped support successful projects include:

•  Copies of market research  
•  3rd party expert assessments of the opportunity
•  Purchase orders tied to project success
•  Your business plan
•  Supporting literature searches
•  Letters of support indicating project impact beyond your company

Why do New Products Fail?
OK ... now it’s time for a quick break and a quiz. 

Look at this list of reasons why managers believe their new product projects failed.

Which one do you think is the most common reason for failure?

Project Management
Project management is important to us.  You will need to provide a clear set of project objectives and deliver a detailed description of the methods you intend to use.  

•  It can be a good idea to add notes to your budget that help evaluators understand how each element of your budget is required to complete the technical approach you are proposing.
•  It is also a good idea to identify any scientific or technical challenges you expect during the project with a plan for managing them.

A good project plan will include a number of things. 

•  Expected timelines and a list of schedule related risks
•  A list of each project activity & target completion dates (milestones)
•  A GANTT chart for more complex projects
•  A list of duties and team roles
•  A list of deliverables

Don’t forget that your deliverables must include several things.

•  You must deliver a final written report in both official languages.
•  You must deliver a plan for communicating your results to public.
•  AND you must deliver a third party independent project audit for any project over $50,000 in AIMAP contributions.

Performance Measures
Meaningful performance measures are important to us.

They say you can’t manage, what you can’t measure.

Indicators of project success might inlclude
Immediate measurable benefits to the company
Expected  future impacts on company
Expected aquaculture community impacts

• Commercialization
• Technology demonstration
• Productivity improvements
• Community economic impacts
• Shared best practices

Project Team
In an appendix you might include details about your team.

•  Detailed resumes for key team members – highlighting unique experience and past achievements
•  A statement of qualifications for unidentified team members
•  Letters of support from key team members/collaborators confirming they are on board.

Project Financing
Project financing is important to us.  We will review AIMAP’s standard reporting framework, suggested supporting information, some key financial ratios, and provide an overview of eligible expenses.

Project Financial Support (Table #1)
AIMAP require all applicants to follow a standard approach to presenting financial information.   There are three tables provided in the application guide that we should review. 

Table #1 is the summary of financial support
You should list all funding partners making contributions
You should include AIMAP in this list
You should specify the amount of cash and in-kind contributions
You should state if the contribution confirmed or not
You should check if the amounts in table #1 match those you provide in your budget.

In a supporting appendix you should include brief organizational profile(s)

Project Budget (Table #2)
Table #2 is the project budget

The budget will spell out all spending that will form part of the project. 
All expenses must be reasonable, justifiable and specific to the project.

As noted earlier, one best practice for budgets is to add line items for each item in the budget and where it makes sense add supporting notes to the budget in a section that follows your budget. 

In a supporting appendix it is a very good idea to justify major expense items with multiple quotes, or sole source justifications.

Please remember that part of our job in managing AIMAP is to ensure the tax payer gets good value for money. 

AIMAP Cash Flow (Table #3)
Table #3 is a summary of the AIMAP payment schedule. 

Indicate when you would like to receive your AIMAP funding.  

You only need to include AIMAP cash flows. 

Please use a separate table for each fiscal year running between April 1 and March 31.

Finally, please limit the number of payments we need to make to 3 or 4 per year. 

Key Financial Ratios
Let’s review some rules around AIMAP’s key financial ratios.
As noted earlier, industry sources must invest a minimum of 10% of total cash contributions into any project.  One comment worth noting here is that private ENGO funding can be considered equivalent to industry cash.

Also noted earlier, AIMAP cannot invest more than 75% of the total project costs.

Finally, stacking is a rule where multiple government funding sources are investing in a project.  No project should ever have more than 90% of total funding coming from government sources.

Eligible Costs
AIMAP will consider many types of eligible project costs. 
The application guide spells out what is eligible and what is not.
If you have any questions, just call your regional RACO office. 

Now let’s look at some frequently asked questions around expenses.

Technology Importation Costs
AIMAP may support importation of existing technology provided it does not currently exist elsewhere in your region of Canada.

For the equipment itself AIMAP will pay up to 75% of purchase cost

For transportation of the equipment AIMAP will pay up to 100% of transportation cost

HR Costs
What HR costs are eligible ?

New positions dedicated to the project, extended seasonal workers dedicated to the project, or contract positions dedicated to the project are all eligible costs under AIMAP.

Owner time, management time, or time of regular staff are not allowable expenses. 

Ineligible Costs
What common budget mistakes do we see ?

We do not fund HR costs linked to regular staff at the proponent organization

We do not fund vehicle purchases such as boats or barges.   That said, we may fund modifications to vehicles or project specific parts where the work is required for a successful project.

We do not fund major infrastructure costs such as buildings or docks.

Finally, we do not fund travel for regular employees.

Proposal Check List
Finally, before you submit your proposal, you should make sure that everything you need to win this competition has been included.  Please review this check list before making your final submission.

Please refer to the AIMAP Proposal Guidelines or your regional DFO Aquaculture Coordination Office for more information.  Regional contact information and the application guidelines can be downloaded from the DFO website. 

Questions?
Well, thanks for listening.  I hope you now have a better idea about how to prepare your AIMAP application than you did when we started. 

If you have any questions, please contact your DFO regional aquaculture coordinator located at each Fisheries and Oceans Canada regional office. 

Program guidelines and regional contact information can be found online at this address.

Thanks again, and good luck.