Arctic Circle Wild Salmon - HOME | Alaska Business … Arctic Circle Wil… · · 2014-02-04Arctic Circle Wild Salmon ... Objective Work Plan ... The new primary fish processing

Arctic Circle Wild Salmon

Administration for Native Americans Sustainable Employment and Economic Development Strategies Grant

HHS-2013-ACF-ANA-NE-0588 Application Date: July 15, 2013

Submitted By:

Maniilaq Services, LLC of Kotzebue, Alaska In partnership with

Sun’aq Tribe of Kodiak, Alaska

PROJECT NARRATIVE

Table of Contents

Project Summary ............................................................................................................................. 3

Objectives and Need for Assistance ............................................................................................... 4

Outcomes Expected ........................................................................................................................ 9

Full-Time Equivalent (FTE) Positions........................................................................................ 9

Native Americans Employed .................................................................................................... 10

Native-Owned Businesses Developed ...................................................................................... 10

Revenues Generated.................................................................................................................. 11

Revenues Retained Within the Community Being Served ....................................................... 11

Impact Indicator ........................................................................................................................ 11

Project Approach .......................................................................................................................... 11

Quality and Sustainability ......................................................................................................... 12

Sustainable Resource Harvest Capacity.................................................................................... 13

Project Phases ........................................................................................................................... 13

Project Strategy ......................................................................................................................... 13

Planning and Implementation ................................................................................................... 14

Business Structure and Long Term Planning........................................................................ 14

Fisheries Resource ................................................................................................................ 14

Fishing Fleet.......................................................................................................................... 15

Quality Control and Culturally Appropriate Handling of Salmon........................................ 15

Processing Plant Workforce .................................................................................................. 16

Property, Equipment, and Plant ............................................................................................ 16

Product Development............................................................................................................ 17

Sales and Marketing .............................................................................................................. 17

Community Involvement during Project Implementation ........................................................ 18

Contingency Planning ............................................................................................................... 18

Partnerships and Leveraged Resources ..................................................................................... 18

Objective Work Plan ................................................................................................................. 19

Geographic Location ................................................................................................................. 22

Organizational Capacity............................................................................................................ 24

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Key Leaders of the Project .................................................................................................... 24

Maniilaq Services, LLC Past Performance ........................................................................... 25

Plan for Oversight of Federal Award Funds ............................................................................. 25

Budget ........................................................................................................................................... 26

Budget Justification ...................................................................................................................... 26

Personnel ............................................................................................................................... 26

Fringe Benefits ...................................................................................................................... 26

Travel .................................................................................................................................... 26

Equipment ............................................................................................................................. 26

Contractual ............................................................................................................................ 26

Other ..................................................................................................................................... 26

Indirect Charges .................................................................................................................... 26

Program Income .................................................................................................................... 26

Commitment of Non-Federal Resources .............................................................................. 26

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Project Narrative

PROJECT SUMMARY

The ANA SEEDS funding request is for the Arctic Circle Wild Salmon (ACWS) value-added product company. Maniilaq Services, LLC, of Kotzebue, Alaska has developed the ACWS brand over the past three years and has positioned its value-added products for accelerated growth if a new primary processing plant can be established at the point of fish harvest on-shore at Kotzebue, Alaska. The ANA SEEDS fund request is for $500,000. Funds will be used for equipment and tools, packaging inventory and additional marketing to allow ACWS to meet the demand.

The ANA SEEDS grant would save ACWS over $400,000 a year in packing, handling and transporting the product from a shore-based plant in Kotzebue, Alaska for value-added processing by removing the fish head and guts prior to shipping.

Annual sales of the value-added products at full capacity is projected to be $15 million and create 20 seasonal and four full-time jobs and double the price per pound of fish paid to local fishermen and women.

Maniilaq Services has an existing 6,000 square foot facility for the establishment of up to 25 ton per day fish buying station and primary processing facility. With the shore-based plant in the community, transportation costs for the raw material is negligible to the plant.

There is an excellent logistics network for distribution of the end product. The production plant is one block from the airport that accommodates Boeing 737’s, 727’s, and C-130 Hercules transport planes. The salmon will be airlifted to Kodiak, Alaska where the value-added processing takes place and then onto Anchorage where FedEx has a cargo hub with daily transports to Asia, Europe and domestic U.S. market. All major global locations can receive product within forty-eight hours from the plant.

The new primary fish processing plant building is constructed and permitted for the existing facility. The plant building has been erected and permitted through the local municipality and state fire marshal. Only interior improvements need to be made to make the plant operational.

There is a requirement of approximately $500,000 to complete the engineering, design and construction to provide a full operational capability at 25 tons per day at this plant. Primary processing to produce headed and gutted (H&G) Arctic Circle wild salmon with slime line tables, a heading and gutting machine, packing material and high volume ice machine.

Initially, the plant was designed for primary processing only without on-site freezer storage or value-added processing. Maniilaq Services has partnered with the Sun’aq Tribe of Kodiak, Alaska to perform the value-added processing, and use of their freezer storage space. Sun’aq Tribe would also serve as the fulfillment center for website and commercial sales.

As ACWS grows, Sun’aq and Maniilaq will continue to collaborate on the most cost-effective way to expand their joint efforts and plan to meet annually to plan ahead as they have done for the past three years.

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OBJECTIVES AND NEED FOR ASSISTANCE

In 2010, Maniilaq Services, LLC1 launched its product development of the Arctic Circle

keta salmon and spent over two years testing its harvest production practices and techniques, fish

processing, product packaging and logistics chain and hence the formation of Arctic Circle Wild

Salmon (ACWS).

ACWS salmon products come from the farthest north commercial wild salmon fishery in

North America. The wild keta salmon, whose common name is chum (Oncorhynchus keta), is

known for its great color, subtle taste, and significant health benefits. The prized keta salmon roe

is of high quality and value for the production of Ikura or salmon caviar.

Arctic Circle Wild Salmon (ACWS) has a demand for 1,000,000 pounds of keta salmon

product each year, however only 100,000 pounds can be processed due to no shore-based plant in

Kotzebue, Alaska, which is located 26 miles north of the Arctic Circle, home the ACWS keta

salmon. Consequently, the salmon must be shipped out in the round (complete fish with head, tail,

and guts) and flown to a processing plant in Kodiak, Alaska over 600 miles away.

The Administration for Native Americans Sustainable Employment and Economic

Development Strategies (ANA SEEDS) grant would allow Maniilaq Services, LLC to expand their

shore-based processing plant to accommodate the 1,000,000 pound demand. Annual sales of the

1 Maniilaq Services, LLC is a tribally-owned Alaska company created in 2007. It is a SBA

certified 8(a) company with annual sales of over $5 million a year with 45 employees and over

$10 million in contracts over the past year.

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value-added products at the full 1,000,000 pound capacity is projected to be $15 million and create

20 seasonal and four full-time jobs and double the price per pound of fish paid to local fishermen

and women. The grant would also allow ACWS to save on packing and transporting costs to

become more competitive in the market place with a lower price point selling a higher quality

product.

At current freight prices, the ANA SEEDS grant would save ACWS over $400,000 a year

in packing, handling and transporting the product from a shore-based plant in Kotzebue, Alaska

for value-added processing by removing the fish head and guts prior to shipping. These funds

would fall to the bottom line and increase profitability for further investment by Maniilaq Services

to continue to grow its Arctic Circle Wild Salmon brand as well as increase employment capacity

of ACWS.

Currently, primary and value-added processing is done by our tribe-to-tribe business

partner Sun’aq Tribe in Kodiak, Alaska located on Kodiak Island. With limited processing

capability in Kodiak at higher costs, the growth of the Kotzebue Sound value-added salmon fishery

is at a critical crossroads.

The choices are clear:

(1) Either grow the value-added product production with new, shore-based primary

processing facilities in the community of harvest; or

(2) Limit the business and price competitiveness to the higher cost 100,000 pound capacity

with primary processing and value-added processing occurring outside the community of

salmon harvest.

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Choice #2 limits the growth of the value-added products by the tribes, thereby denying local tribal

members the benefits of employment and higher fish prices for the fishers. Also, fish tax revenue

could directly benefit local tribal members and residents through the City of Kotzebue who has

provided Maniilaq Services a letter of support for its ANA SEEDS grant application, which can

be found in the Appendices.

Maniilaq Services, LLC, partnering with the Sun’aq Tribe of Kodiak’s company, Kodiak

Island Wildsource, is the only company in the world making these finished, ready-to-eat products

from the Kotzebue Sound keta salmon. Maniilaq Services has developed ten (10) value added

products being sold in the United States and overseas. Kodiak Island Wildsource and Maniilaq

Services have successfully engaged in a three year co-packing and co-marketing partnership and

meet annually to update joint efforts for the next two years. The collaborative and supportive

relationship has led to a high level of trust in help each other develop markets for our products.

ACWS product offering includes both raw and finished wild salmon products. The line of ten

products include:

• Smoked Salmon Strips (ready-to-eat)

• Smoked Salmon Jerky (four flavors: original, honey, peppered and sweet) (ready-to-eat)

• Smoked Salmon filet sides and portions (ready to eat)

• Raw Salmon filet sides and portions (finished product ready to cook)

• Ikura (cured salmon roe known as American caviar) (ready-to-eat)

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These are high value, high margin products. Salmon are graded on their meat and skin color

and ACWS products are top grade. On the skin color scale (#1 being the highest of 8 grades)

ACWS are #1 and #2. On the meat color scale (#6 being the highest or best), ACWS salmon are

#6 and #5.

ACWS products use no additives, no nitrates, no monosodium glutamate, or artificial

preservatives. The process uses sea salt and brown or cane sugar. Pepper, garlic, and honey are

added within the flavor profiles of different products. As a natural product, the wild Arctic Circle

keta salmon is high in Omega 3 oils and protein. A 3.5 oz. serving, the Alaska wild keta delivers

800 mg of Omega 3 and a healthy 26 grams of protein with only 5 grams of fat. Unlike farmed

salmon, the wild keta has the highest recommended consumption of servings per week.

Nutritional Value Comparison Chart 3.5 ounce (100-gram) raw filletWild Alaska Keta

UnitCalories 150Calories from fat 45Protein gram 26Total fat gram 5Saturated fat gram 1Omega-3 mg 800Cholesterol mg 95Sodium mg 65

Source: Alaska Seafood Marketing Institute, June 2008 and 2007

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Maniilaq Services, LLC is requesting $500,000 for equipment, tools, packaging inventory,

and marketing funds in order to establish a 25 ton per day fish buying and primary processing

production operation including:

(1) Equipment (buying dock, fork lift, hauling truck, slime table, heading and gutting

machine, and high volume ice machine);

(2) Tools;

(3) Packing material inventory; and

4) Additional marketing of the Arctic Circle Wild Salmon brand.

Items will be housed in a leased facility (with an option to buy) by Maniilaq Services.

Maniilaq Services will also invest its own capital for additional improvements for water, electrical,

HVAC, mechanical and plumbing installation to serve as a match of the ANA SEEDS funds.

The main objective of the project is to:

• Fulfill demand for 1,000,000 pounds of salmon product each year. Today, only 100,000

pounds can be processed due to no shore-based plant in the Kotzebue.

In order to increase fishery production from 100,000 to 1,000,000 pounds ACWS will be

purchasing all of their fresh salmon from Kotzebue fishermen and providing them with a

locally owned market, train at least 9 youth in the commercial fishing process, train at least 5

additional tribal members to become fish processing technicians, and generate net income by

the end of year 3 that will enable us to continue to expand production.

Other Objectives include:

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• Develop tribally owned fish processing facilities that focus on value-added niche markets

with culturally appropriate Native labeling.

• Develop Native-to-Native, tribal-to-tribal; direct marketing of value-added fish product,

such as tribally owned gaming casinos in the lower 48 states.

• Include Marine Stewardship Council sustainability certification in all fish product

development.

OUTCOMES EXPECTED

Maniilaq Services, LLC has positioned its value-added salmon products for accelerated

growth if a new primary processing plant can be established at the point of fish harvest on-shore

at Kotzebue, Alaska. The goal is to increase salmon processing from 100,000 pounds to 1,000,000

pounds shore-based. Funds will be used for equipment and tools, packaging inventory and

additional marketing to allow ACWS to meet this demand, which in turn increases local

employment opportunities.

FULL-TIME EQUIVALENT (FTE) POSITIONS

Once the facility is at the full 1,000,000 capacity it is anticipated that four (4) full-time,

year around positions would be created to manage, maintain and run the facility and an additional

20 full-time, seasonal positions, equating to 8 FTE’s.

Half of the anticipated FTE’s or the 20 seasonal employees will be employed as fish

processing technicians for a duration of approximately 8 weeks during the summer salmon fishery

season at 50+ hours per week. These positions typically pay starting at $15/hr + overtime.

Therefore, each technician has the potential to earn $6,000+.

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The four (4) full-time year around positions would range from $40,000 - $80,000, with full

benefits depending if they are the Facility Manager, Administrative Assistant, Assistant Manager

or Maintenance Manager.

NATIVE AMERICANS EMPLOYED

Of the 8 anticipated FTE’s, it is projected that more than 50% will be filled by Native

Alaskans. This percentage is based on the area population of over 81% Alaskan Native as well as

Maniilaq’s ability to target their employment needs directly to their tribal members.

NATIVE-OWNED BUSINESSES DEVELOPED

This project will help expand two existing (2) native-owned businesses, Arctic Circle Wild

Salmon and Kodiak Island Wildsource.

First, the project will allow Arctic Circle Wild Salmon (ACWS) located in Kotzebue,

Alaska to expand their current 100,000 pound salmon processing to 1,000,000 pounds shore-based,

allowing them to fulfill the current market demands, while harvesting keta salmon sustainability.

The 1,000,000 pound shore-based facility will also allow them to save money on packing and

transportation costs since the fish will be able to be shipped to its value-added processor without

its head, tail and guts.

Second, this project would help Kodiak Island Wildsource to grow their operation because

of the increased amount of keta salmon ACWS would be supplying to them to process into ten

(10) different valued-added products. This would allow more value-added product to be available

on their already existing website and through commercial sales as well as allowing an increase in

marketing efforts to new potential customers since supply has increased.

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REVENUES GENERATED

Annual sales of the value-added products at full the full 1,000,000 pound capacity is

projected to be $15 million.

REVENUES RETAINED WITHIN THE COMMUNITY BEING SERVED

It is anticipated that over 30% of the revenues from ACWS will be retained within the

community by paying wages to employees who live in the community, purchase of local supplies

and services such as electric, waste disposal and independent contractors, as well as profits retained

within the business.

IMPACT INDICATOR

Impact Indicator Pre-Grant Status End-of-Grant Target Three-Year Target # of FTE’s Employed 0 2 8 Avg. Annual Income TBD $45,000 $48,000

PROJECT APPROACH

The primary organizations involved in this project are Maniilaq Services, LLC / Arctic

Circle Wild Salmon (ACWS) of Kotzebue, Alaska and Sun’aq Tribe of Kodiak / Kodiak Island

Wildsource of Kodiak, Alaska, which involves the tribal members of each organization within

each community. The primary goal of this project is to increase the salmon processing capability

of ACWS from 100,000 keta per year to 1,000,000 in order to meet market demand, which in turn

would lower packaging and shipping costs to Kodiak Island Wildsource who turns the processed

salmon into a value-added product.

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QUALITY AND SUSTAINABILITY

Maniilaq Services quality process is a key component of its value-added products. The fish

are collected in small 20’ boats and the number of fishers has been limited by the State of Alaska

for several decades to assist in the constitutionally mandated standard of managing the fishery on

a sustained yield basis.

When Alaska was accepted into the Union, its constitution was drafted to require that all

fish and game shall be managed on a “sustained yield basis.” Alaska has been practicing sound

sustainability standards for the past 60 years since the time it became a state. Indeed, one of great

desires of residents to become a state was to wrestle control of the fish and game resource

management away from the federal government due to concerns about out-of-state interests over-

fishing the resource. Alaska has been ahead of the sustainability curve over 40 years before others

took notice.

The quality process Maniilaq Services demands ensure success as a value-added salmon

provider. With such a high quality product as its feedstock, by providing a high quality control in

the handling of the harvested resource, they are able to continue to move the products higher on

the price spectrum as demand grows. With greater demand for a limited fishery, Maniilaq Services

ensures the highest possible price for the value-added products.

Nothing in the typical fish buying and transport process is designed to protect the quality

of the meat in the fish. Instead, the process is built for high volume product processing with lower

grade quality the acceptable standard. However, commercial buyers and consumers are demanding

higher quality, competitively priced seafood products.

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Maniilaq Services only employs fishers who agree to the high quality standards. Maniilaq

Services discuss with the fishers the importance of delivering the fish using quality practices that

ensures the highest value or ACWS won’t accept the fish. With the right quality controls and

practices the fishers receive a greater return for the extra effort. For 20% more effort, the fishers

double their revenue.

SUSTAINABLE RESOURCE HARVEST CAPACITY

The Alaska fisheries are constitutionally mandated to be managed on a sustained yield

basis. The Kotzebue Sound fishery generally supports a harvest level of 2,000,000 pounds of keta

salmon each season. The 2013 harvest catch is set at 225,000 to 250,0002 fish with typical weights

between 7 to 9 pounds. That creates a low harvest of pounds to be 1,800,000 pounds to 2,000,000

using an average weight of 8 pounds.

PROJECT PHASES

• Phase I September 2013 Interior Construction of new 6,000 sq. /ft. addition

• Phase II March 2014 Completion of New Facility and Equipment and Inventory

Acquisition

• July 2014 Complete Facility Operational and Primary Processing Begins

PROJECT STRATEGY

The processing of wild salmon in alliance with the project goal contains eight major

components. All of these components must be addressed for Arctic Circle Wild Salmon to be

successful. The project approach and strategies are integrated within the tribe and community and

2 Alaska Department of Fish and Game, February, 2013, Special Publication 13-03

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are listed below. The Project team that will support these strategies is discussed as part of the

organizational capacity section. The budget and budget justification section outlines the financial

request from ANA along with what is being provided as project match by the tribe.

PLANNING AND IMPLEMENTATION

Business Structure and Long Term Planning

Arctic Circle Wild Salmon (ACWS) is 100% owned by Maniilaq Services, LLC. Maniilaq

Services is a for-profit subsidiary of Maniilaq Association, owned by twelve federally-recognized

tribes located in Northwest Alaska. Maniilaq Association is a non-profit organization with 30

years of experience in government and commercial contracting. Maniilaq Services has a three

person board. One member is selected by the Kobuk Traditional Council, one by Maniilaq

Association, and the third by the other two board members.

The combined experience allows ACWS to engage in rigorous long-term strategic planning

necessary to be competitive in today’s marketplace.

Fisheries Resource

The Alaska fisheries are constitutionally mandated to be managed on a sustained yield

basis. The Kotzebue Sound fishery generally supports a harvest level of 2,000,000 pounds of keta

each season. The 2013 harvest catch is set at 225,000 to 250,0003 fish with typical weights between

7 to 9 pounds. That creates a low harvest of pounds to be 1,800,000 pounds to 2,000,000 using an

average weight of 8 pounds.

3 Alaska Department of Fish and Game, February, 2013, Special Publication 13-03

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Alaska Department Fish and Game currently restricts the commercial fishing time due to a

currently limited market in order to prevent waste. As the market increases the fishery capacity

will be increased.

Fishing Fleet

As of 2012, there were 83 permit holders in the Kotzebue region who are eligible to fish

for keta salmon.

Figure 1: District commercial chum salmon harvest and number of permits fished, 1985-2012

Quality Control and Culturally Appropriate Handling of Salmon

Arctic Circle Wild Salmon are of exceptional high quality, having bright color, firm flesh,

and a higher Omega-3 oil content than other Pacific chum. In order to maintain this high quality

ACWS utilizes the cold water fish method.

Once withdrawn from the net in the Arctic Ocean, the salmon are immediately bled and

placed into plastic totes that are filled with crushed ice. This allows the salmon’s body temperature

to descend to a cool 32.5 degrees. ACWS fisherman care for their salmon, as it is important to the

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way of life and survival, therefore ACWS stays away from handling the salmon with neglect during

the vital moments once it reaches the boat.

After concluding fishing for the day, ACWS fisherman immediately head back to base

camp. Simultaneously, crew members back up the pickup truck, retrieve travel fish boxes from the

storage unit, dock the boat and connect it to the pickup truck with an assembly line ramp. This

allows the crew to expedite the packaging and transportation of the salmon to the airport in order

for it to be flown directly to the partner in Kodiak, Alaska, Kodiak Island Wild Source, where the

salmon is processed, packaged, and distributed to purchasers. With this current time-consuming

and expensive processing method, only 100,000 pounds of keta salmon can be harvested and

shipped to the value-added partner in Kodiak.

However, if the project is funded the new shore-based processing facility will be capable

of processing up to 1,000,000 pounds of keta salmon, which would meet current market demands.

Processing Plant Workforce

Once the processing plant is complete it is expected that the Kotzebue plant will require

three to five (3-5) seasonal fish processing technicians and one to two (1-2) full-time, year around

managers/administrative personnel. And within three years when the plant is running at the full

1,000,000 pound capacity it is anticipated that the workforce needs will grow to four (4) full-time

year around positions and 20 full-time seasonal fish processing technicians.

Property, Equipment, and Plant

The building owner has consented to a multi-year lease agreement with an option to buy

with Maniilaq Services. Maniilaq Services will provide leasehold improvements for the plant. The

equipment, inventory and tools will be housed in this 6,000 square foot facility. The plant will be

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located two blocks from the fish buying station at the shore in Kotzebue. The dock buying and

shore based primary processing facility will have standard industry equipment.

Equipment needs include fish processing, manufacturing and storage as well as a crane,

platform, forklift, high volume ice machine, freezer and cargo transport vehicle for ground

transportation for the movement of the fish from the fish buying station to the plant and ultimately

to the airport for shipment.

Product Development

Currently, primary and value added processing is done by Maniilaq’s tribe-to-tribe

business partner, Sun’aq Tribe in Kodiak, Alaska located on Kodiak Island. With limited

processing capability in Kodiak at higher costs, the growth of the Kotzebue Sound value-added

salmon fishery is at a critical crossroads.

Sales and Marketing

Kodiak Island Wildsource and Maniilaq Services have successfully engaged in a three year

co-packing and co-marketing partnership and will meet annually to update each on joint efforts.

The collaborative and supportive relationship has led to a high level of trust in help each other

develop markets for the products.

Arctic Circle Wild Salmon product offering includes both raw and finished wild salmon

products. Increased marketing will be a part of ongoing project development. Below is product

label that is affixed to each package.

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COMMUNITY INVOLVEMENT DURING PROJECT IMPLEMENTATION

Both organizations, Arctic Circle Wild Salmon and Kodiak Island Wildsource are affiliated

with each community’s tribal organization – Maniilaq Association and Sun’aq Tribe. This

affiliation opens the door to get both communities involved in the project because each

organization has been a trusted, integral part of each community for decades and have methods set

forth such as websites, newsletters, meetings and community announcements to keep the

community informed and engaged in the project’s efforts.

CONTINGENCY PLANNING

One of the biggest risks of the project is a year with a low keta salmon return. However,

since the demand sets the price, which even on a potential low run year the price of the product

would increase due to the shortage, not effecting revenues significantly.

Another risk would be failing to meet the June 2014 fishing season with a processing plant

that is not fully operational due to equipment and/or tool shipping and/or receiving delays.

However, if that would happen the plan would be to continue with the normal processing method

that has been done in previous years and launch the new processing plant for the 2015 fishing

season.

PARTNERSHIPS AND LEVERAGED RESOURCES

This project could not happen without the already existing partnership between Maniilaq

Services, LLC / Arctic Circle Wild Salmon and Sun’aq Tribe of Kodiak / Kodiak Island

Wildsource. Arctic Circle Wild Salmon processes and supplies the raw keta salmon to Kodiak

Island Wildsource, who then turns the raw salmon product into ten (10) value-added salmon

products, such as:

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• Smoked Salmon Strips (ready-to-eat)

• Smoked Salmon Jerky (four flavors: original, honey, peppered and sweet) (ready-to-eat)

• Smoked Salmon filet sides and portions (ready to eat)

• Raw Salmon filet sides and portions (finished product ready to cook)

• Ikura (cured salmon roe known as American caviar) (ready-to-eat)

This partnership allows each native-owned business the opportunity to do what they are best

at and utilizing local resources, while at the same time creating jobs in two communities, hundreds

of miles apart, and helping to stimulate multiple economies. It is a win-win situation for both

parties involved.

OBJECTIVE WORK PLAN

Project Title: Arctic Circle Wild Salmon

Project Goal: To increase salmon processing from 100,000 pounds/year to 1,000,000 pounds/year

Project Year: 1 (September 2013)

Objective # 1: Upgrade interior of leased 6,000 sq. ft. building located in Kotzebue, Alaska.

Problem Statement: The building “as-is” is not functional for a primary processing plant. Therefore, a number of upgrades need to take place.

Results Expected: Installation of water, electrical, HVAC, mechanical and plumbing by January 2014.

Criteria for Evaluating: Project applicant will hire the appropriate contractor to fulfill the needs by expected date of January 2014.

Benefits Expected: These improvements will allow for the installation of the equipment that is to be procured in the next objective and to make the facility operational.

Criteria for Evaluating: The project ends up with water, heat and plumbing.

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Activities Position(s) Performing the

Activity

Time Period

mm/dd/year

Lead Other Support

Begin

End

1 Hire plumbing and heating contractor

Oct 2013

Jan 2014

2 Hire electrical contractor

Oct 2013

Jan 2014

3

4

The Paperwork Reduction Act of 1995: Public reporting burden for this collection of information is estimated to average 3 hours per response, including the time for reviewing instructions, gathering and maintaining the data needed, and reviewing the collection of information. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB number. http://www.acf.hhs.gov/programs/ana/resource/objective-work-plan



Project Year: 2 (March 2014)

Objective # 2: Complete upgrades of 6,000 sq. ft. building located in Kotzebue, Alaska by acquiring and installing the new equipment, tools and shipping supplies inventory.

Problem Statement: The primary processing facility needs certain equipment to process the keta salmon.

Results Expected:

Criteria for Evaluating:

Benefits Expected: Criteria for Evaluating:

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http://www.acf.hhs.gov/programs/ana/resource/objective-work-plan


Activity

Time Period

mm/dd/year

Lead Other Support

Begin

End

1

2

3

4




Project Year: 2 (June 2014)

Objective # 3: Facility is complete, operational, and primary processing begins.

Problem Statement: Need to process up to 1,000,000 pounds of keta salmon to meet the demand for value-added salmon products.

Results Expected:

Criteria for Evaluating:

Benefits Expected: Criteria for Evaluating:

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Activity

Time Period

mm/dd/year

Lead Other Support

Begin

End

1

2

3

4


GEOGRAPHIC LOCATION

The Northwest Arctic Borough is the second largest borough in Alaska, comprising

approximately 39,000 square miles. Extending 175 miles north to south and 250 miles east to the

west, the Borough is roughly the same size of the State of Indiana.

The Borough is home to approximately 7,523 people, 2012 Census, in eleven communities

located along the coastal waters and inland along the major waterways which include the Ambler,

Wulik, Kobuk, Noatak, and Selawik rivers. Over 81.1% percent of the residents are Inupiaq

Eskimos whose ancestors settled the land over 4,500 years ago. Then, as today, life in the region

depended on the resources of the land.

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The northwest Alaska region has a diverse terrain that consists of mountains, great sand

dunes of the Upper Kobuk, alpine tundra, moist tundra, wet tundra, sand and gravel spits and

barrier islands, and boreal forests.

Kotzebue is located at approximately 66.9° North and 162.6° West (Section 3, Township

17N, Range 18W, Kateel River Meridian) on the Baldwin Peninsula in the Kotzebue Sound, on a

3-mile-long spit. A total of 27.0 square miles of land and 1.7 square miles of water are within its

city limits. The mouth of the Kobuk, Noatak and Selawik Rivers are near Kotzebue.

Kotzebue is the largest of the eleven communities in the Northwest Arctic Borough

(NWAB). NANA, the area’s regional native corporation and the NWAB share the same

boundaries. Kotzebue Airport serves as the regional air transportation hub for the 10 other

communities in the NWAB (Ambler, Buckland, Deering, Kiana, Kivalina, Kobuk, Noatak,

Noorvik, Selawik, and Shungnak) and to some extent for the Red Dog Mine, 90 miles north of

Kotzebue, as well as for the village of Point Hope further up the coast in the North Slope Borough

(Northwest Arctic Transportation Plan, 2004, DOT&PF). NANA generates revenues to provide

jobs and social services such as healthcare and education for the native Alaskans in its region.

The 2010 Census found Kotzebue’s population at 3,201, over 44 percent of the total

Borough population (Alaska Department of Commerce, Community and Economic Development

– Community Database website).

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Figure 2: Location of the plant site in Kotzebue, Alaska

ORGANIZATIONAL CAPACITY

Key Leaders of the Project

Michael Scott, President/CEO- Oversees the day-to-day operations of the company, with

over 25 years of experience in the construction industry and over $1 billion under contract. Mr.

Scott has profit and loss responsibility, implements strategic direction of the company, and develops

business relationships with customers and partners. He also establishes, maintains and evaluates

quality performance standards. He has an MPA from Harvard University and in 1991 was presented

the prestigious Robert F. Kennedy Award for Public Service. Mr. Scott initiated, formulated and

executed the strategy to develop and commercialize Arctic Circle Wild Salmon.

Seth Kantner, Kotzebue Fish Catcher/Seller who has worked for Maniilaq Services, LLC

the past three years on the fish quality control, buying, packing, transporting and air logistics for

Maniilaq Services to Kodiak. Mr. Kantner has spent many years commercial fishing in Kotzebue

Sound salmon fishery. Mr. Kantner will continue to oversee Maniilaq Services quality control, fish

buying, packing and shipment of the primary processing plant.

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Kodiak Island Wildsource will provide technical assistance in the acquisition, placement

and operation of the primary processing plant in Kotzebue. As a tribe-to-tribe business enterprise,

Maniilaq Services and Kodiak Wildsource have joined forces to become a viable, long-term value-

added seafood product company. Kodiak’s success with its initial ANA grant will assist Maniilaq

Services in executing its initial ANA SEEDS grant, if awarded.

Maniilaq Services, LLC Past Performance

Maniilaq Services, LLC was a 2009 winner of the ‘Best in Business Award’ from the Small

Business Association. With over thirty years of experience, the company operates under contracts

with multiple federal, state, and local agencies including Indian Health Service, Bureau of Indian

Affairs, State of Alaska, and other federal, state, and private foundations.

Figure 3: List of past and current clients

PLAN FOR OVERSIGHT OF FEDERAL AWARD FUNDS

• Include an adequate plan for oversight of grant funds describing how oversight of grant funds will be properly ensured, including ID of staff who will be responsible for maintaining oversight of program reporting, activities, staff, and partners.

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Budget and Budget Justification

BUDGET

BUDGET JUSTIFICATION

• Budget narrative – can be singled spaced, but still 12 point Times New Roman • Line-item budget detail with detailed calculations • 424A for each year • Include funding for ANA post award training $2,500 (travel) • Cost to attend annual meeting $5,500 for 2 people (travel)

Personnel

Fringe Benefits

Travel

Equipment

Contractual

Other

Indirect Charges

Program Income

Commitment of Non-Federal Resources

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Appendices – See File 2

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Documents

Arctic Circle Wild Salmon - HOME | Alaska Business … Arctic Circle Wil… · · 2014-02-04Arctic Circle Wild Salmon ... Objective Work Plan ... The new primary fish processing