FCS3
FeedstockConversionTechnical AssistanceandMaterialTestingServices Proposal to California Department of Resources Recycling and Recovery (CalRecycle)
SHIN
NEXGEN ™ POLYMER M
RFP #DRR21047
Shown in: Antique Brown
Antifatigue Mats Tire & Virgin Rubber
Pathway Tire Rubber & Aggregate
Weight Bearing Bloxx
Testing to Determine Rubber Particle Size
Tire Rubber & Plastic Frames
December 1, 2021
D K E sustainable solutions is our business
November 30, 2021 Proposal Review Committee California Department of Resources Recycling and Recovery 1001 I Street Sacramento, CA 95814 CalRecycle Contracts Unit, MS-19A Re: Feedstock Conversion Technical Assistance and Material Testing Services, RFP #DRR21047 Dear CalRecycle Proposal Reviewers: On behalf of our project team, we are pleased to submit this proposal to support CalRecycle in the Feedstock Conversion Technical Assistance and Material Testing Services contract (referred to as Feedstock Conversion Services in this proposal, or FCS). This FCS, in combination with the previous two FCS Contracts, CalRecycle’ s Tire Incentive Program (TIP) and the Tire Market Analysis and Support (TMAS) Projects provides the ingredients needed to effectively maximize progress in scrap tire feedstock conversion and use of California tire-derived material (TDM) in the production of manufacturing tire-derived products (TDP) over the coming years. Denise Kennedy, President of DKE Enterprises, Inc. (dba DK Enterprises) and the proposed Project Manager, has assembled a team with unmatched qualifications, resources and established working relationships with California TDM feedstock suppliers, TDP manufacturers, other manufacturers that use raw materials (e.g., virgin rubber, plastic, aggregate), testing facilities, compounders, firms that specialize in required certifications and technical and material testing specialists. These relationships are valuable assets and important components that are needed for FCS success. Ms. Kennedy has provided similar services as a contractor and subcontractor in nine separate CalRecycle contracts since 2006, and if selected, will be responsible as the Project Manager and will directly lead assistance services and other contract activities under FCS. As Project Manager, Denise Kennedy, DK Enterprises, will be the lead person as the Manufacturer Technical Assistance Manager and Material Testing Manager. Denise Kennedy will collaborate with the TIP eligible manufacturers and CalRecycle contractor’s team to secure and facilitate the activities of the CalRecycle FCS approved candidate manufacturers. In addition, the project manager will utilize subcontractors with relevant expertise in project management, material handling, technical analysis, and product and market development. Will Esparza, William Esparza Consulting Services, a California Department of General Services (DGS) Small Business DVBE/SB(Micro) firm will provide administrative, accounting, and project support for Task 1 – Task 5 by hiring subcontractors recommended and approved by the Project Manager. David Stevens, The David Stevens Company, will assist with some research, outreach mailings and marketing efforts in Task 2, Task 3 and Task 5. Our team has received commitments
www.dkenterprises.us Phone (916) 706-3869 2569 Heritage Park LN, CA 95835
Letter to CalRecycle Proposal Reviewers FCS-DRR18113 February 18, 2019
from 11 specialized material testing facilities that performed tests in the previous two FCS Contracts and the previous Tire Derived Product Business Assistance Programs. Eleven manufacturing and material specialists have been identified to provide specialized technical assistance and advice related to rubber, plastic and other aggregate raw materials, quality assurance and control, engineering, process optimization and product development. However, the manufacturers that commit to the FCS process may identify other experts that would better meet their needs as service providers. The intent will be through the FCS team and contract activities to demonstrate to the manufacturer that they receive value added services and product benefits. The candidate manufacturers will provide an opportunity to expand the use of recycled tire rubber by committing to changing the design and/or specifications of an existing or new product by replacing one or more raw materials with a minimum of five percent tire rubber. Also, the manufacturers will need to provide financial and personnel resources, equipment, production runs, some testing and managerial time to develop a product within the timeline of FCS. We are excited by the opportunity, if selected, to continue our team’s long-standing partnership with CalRecycle in scrap tire market development. We believe the following points set our proposal apart: • Drawing on our team’s technical knowledge and hands-on industry experience, we can offer practical insights to overcome anticipated challenges and deliver tangible results; • Our ability to gain the trust of participating TDM feedstock suppliers and product manufacturers is well proven, and we will make ever attempt to leverage our established industry relationships to hit the ground running and to maximize project outcomes; • Our team and CalRecycle have learned it is important to be nimble during the contract to keep making progress. Market development of commercial products is a complex process with many uncertainties and neither our team nor CalRecycle has complete control of the development process nor the manufacturing results; • We are dedicated to ongoing, regular communication with participating manufacturers, service providers and CalRecycle, and we are enthusiastically tenacious in encouraging and helping tire-derived product manufacturers to make progress towards their feedstock conversion goals. In our experience this is the single most important key to feedstock conversion success. Following is the information specifically required by the RFP to be included in this cover letter:
Letter to CalRecycle Proposal Reviewers FCS-DRR18113 February 18, 2019
a. Name and address of the Proposer submitting qualifications: DKE Enterprises, Inc. (DBA DK Enterprises), 2569 Heritage Park LN, Sacramento, CA 95835. b. Proposer’s Headquarters for purposes of this Contract, if awarded: 2569 Heritage Park LN, Sacramento, CA 95835 c. Name, telephone number and email address of a person who can be contacted if further information is required: Denise Kennedy, denise@dkenterprises.us, (916) 706-3869 or Mobile (916) 804-0931 d. Name, title, address, telephone number and email address of individual(s) with authority to negotiate and execute a binding Contract on behalf of the Proposer: Denise Kennedy, President, DKE Enterprises, Inc. (DBA DK Enterprises), 2569 Heritage Park LN, Sacramento, CA 95835, denise@dkenterprises.us, (916) 706-3869 e. All personnel who will provide services under the Contract will have the required certifications, and qualified personnel are available to meet the service needs of this contract. f. This proposal was printed entirely on 100 percent post-consumer recycled content paper. g. DKE Enterprises, Inc. and any Subcontractors to be used during the performance of the contract are eligible to contract with the State of California, pursuant to PCC 10286. h. Following is requested information on DKE Enterprises, Inc. and proposal subcontractors:
OSDS Reference Number Issued by DGS 1796777
Status in Contract
SB/ DVBE Status
Firm
DKE Enterprises, Inc. (DBA DK Enterprises) Akron Polymer Technology Services (APTS) Akron Rubber Development Laboratory, Inc. Alpha Analytical Laboratories, Inc. Asphalt Pavement and Recycling Technologies, Inc.
Prime Contractor
SB(Micro)
Subcontractor
Subcontractor
Subcontractor
SB(Micro)
0001025
Subcontractor
Circular Sustainability Innovation
Subcontractor
Table of Contents 1. SUMMARY ................................................................................................................................................ 1 2. METHODOLOGY ........................................................................................................................................ 2 Task 1: Develop Project Work Plan............................................................................................................ 2 Task 2: Identify Prospective Manufacturers, Conduct Marketing Outreach, Develop Individual Manufacturer Activity Plans and Budgets for Participating Manufacturers, and Qualify Processors to Provide Crumb Rubber .............................................................................................................................. 3 2A. Prepare Prioritized List of Prospective Manufacturers ................................................................ 3 2B. Conduct Outreach to Manufacturers and Secure Commitments ................................................. 4 2C. Prepare Activity Plans .................................................................................................................... 5 2D. Prepare Summary Report and Amend Contract ........................................................................... 8 2E. Qualify Processors .......................................................................................................................... 9 2F. Produce ASTM D5644 and D5603 User Guide and Video .............. Error! Bookmark not defined. Task 3: Work with Manufacturers to Execute Individual Manufacturer Activity Plans........................... 10 Task 4: Crumb Rubber Material Testing ................................................................................................. 11 Task 5: Reporting.................................................................................................................................... 12 3. SCENARIOS .............................................................................................................................................. 14 General Approach to All Scenarios .......................................................................................................... 14 Scenario A................................................................................................................................................ 17 Scenario B................................................................................................................................................ 20 Scenario C................................................................................................................................................ 22 4. ORGANIZATION ...................................................................................................................................... 26 DK Enterprises ......................................................................................................................................... 26 Akron Polymer Technology Services (APTS) ............................................................................................ 27 Akron Rubber Development Laboratory, Inc........................................................................................... 27 Circular Sustainability Innovation............................................................................................................ 28 Disability Access Consultants (DAC) ........................................................................................................ 28 William Esparza Consulting Services ....................................................................................................... 28 Eurofins Environment TestingAmerica .................................................................................................... 28 Elie Hajj, Ph.D, ......................................................................................................................................... 29 IAPMO R&T Lab ....................................................................................................................................... 29 Intertek (Architectural Testing, Inc.)........................................................................................................ 29 Joaquin Wright ........................................................................................................................................ 30 JPS Design Group..................................................................................................................................... 30 Middleton & Associates........................................................................................................................... 30
Modern Concepts, Inc. ............................................................................................................................ 31 Peter B. Sebaaly, Ph.D. ............................................................................................................................ 31 PRI Construction Materials Technologies LLC ......................................................................................... 31 Recycling Research Institute.................................................................................................................... 32 Rubber Compounding, LLC. ..................................................................................................................... 32 Twining, Inc. ............................................................................................................................................ 32 UL LLC...................................................................................................................................................... 33 Western Fire Center ................................................................................................................................ 33 Dr. Yu “Frank” Yang. ................................................................................................................................ 33 5. QUALIFICATIONS AND RESOURCES ....................................................................................................... 34 Project and Activity Plan Management ................................................................................................... 35 Project Coordination and Support........................................................................................................... 36 On-Call Technical Assistance Specialists and Advisors ............................................................................ 36 Product Testing and Certification............................................................................................................ 36 APPENDIX A: COST PROPOSAL ..................................................................................................................... 1 Summary and Background Information .................................................................................................... 2 APPENDIX A: COST PROPOSAL ..................................................................................................... 1 Attachment A1 - Personnel Rate Sheet ......................................................................................... 1 Attachment A2 - Cost Proposal Sheet ........................................................................................... 1 Attachment A3 - Cost Sheet for Scenario A .................................................................................. 1 Attachment A4 - Cost Sheet for Scenario B .................................................................................. 1 Attachment A5 - Cost Sheet for Scenario C .................................................................................. 1 Attachment C - Bidder Declaration .................................................................................................. 1 APPENDIX B: ADDITIONAL REQUIRED FORMS, ATTACHMENTS AND CERTIFICATIONS . 1 Qualifications and Licenses .............................................................................................................. 1 SBE and DVBE Certifications ........................................................................................................... 1 Attachment E - Iran Contracting Act ............................................................................................... 1 Attachment F - Darfur Contracting Act .......................................................................................... 1 Attachment G - California Civil Rights Laws Certification ........................................................ 1 Attachment H - Contractor Status Form ........................................................................................ 1 Attachment I - Client References ..................................................................................................... 2 APPENDIX C: RESUMES ........................................................................................................................ 1 APPENDIX D: SAMPLES OF WRITTEN WORK ................................................................................. 1
List of Tables Table 1: Experience Overcomes Challenges ................................................................................................ 2 Table 2: Summary of Proposed Methodology and Schedule ...................................................................... 4 Table 3: Simplified Sample Activity Plan Summary for Coatings & Sealants, Inc., Scenario A ................ 25 Table 4: Simplified Sample Activity Plan Summary for Architectural Production, Scenario B ................ 27 Table 5: Simplified Sample Activity Plan Summary for Superior Underlayment, Scenario C .................. 30 Table 6: Summary of Team Members’ Pertinent Knowledge and Experience ........................................ 34 Table 7: Sample of Product Tests Performed for Grantee’s TDPs Under TBAP ....................................... 38
Section 1 Summary
1. SUMMARY The Feedstock Conversion Technical Assistance and Material Testing Services (Feedstock Conversion Services, or (FCS) Program works in tandem with CalRecycle’s Tire Incentive Programs (TIP) and the Tire Market Analysis and Support (TMAS) to expand and diversify demand for crumb rubber made from California scrap tires through outreach programs. Crumb rubber is an attractive scrap tire end-use because of its high value and use within diverse manufacturing market niches, both of which strengthen the resiliency of scrap tire recycling. Since the major existing markets for crumb rubber have shown a slow increase in the last few years. We have had some successes in the increase in crumb rubber in California based on the support of the Tire Incentive Program which has been supported by two previous FCS Contracts. The need for increasing crumb rubber demand through feedstock conversion is more important than ever. While there is potential to increase the use of crumb rubber by designing and developing feedstock conversion products, experience with feedstock conversion efforts to date is mixed due to multiple challenges (e.g., benefits versus costs, timeline, money, personnel resources, equipment regulatory and certification requirements, testing, supply chain shortages). On the plus side, a good number of tire- derived manufacturers with diverse products have applied to the TIP, the previous FCS Contracts or CalRecycle grant programs. As identified in our California Waste Tire Market Report for 2020, crumb rubber volumes have yet to reach their full potential. Higher volumes of tire-derived material feedstock conversion projects are feasible if we utilize larger than one-fourth inch material in feedstock conversion projects in addition to using crumb rubber which is equal to ¼” or smaller. Above all, experience shows successful feedstock conversion must be driven by customers, and that a sustained commitment is required by manufacturers to overcome challenges related to new product formulation, defining raw material and product specifications, time frames, cost to the manufacturer and adjusting manufacturing practices. The FCS Program is designed to complement the TIP by directly assisting manufacturers to overcome these challenges. TMAS was established to support market assistance and outreach to promote tire-derived products and complement FCS by promoting the feedstock conversion tire-derived product (TDP) that participating manufacturers make, expanding and diversifying markets. In Task 2, the RFP shows that the Contractor’s efforts are to be focused on manufacturers that have not previously participated in various CalRecycle grants and technical assistance, including the TIP grant or the previous FCS contracts. It is estimated that approximately 85 to 95 percent of the current California TDP manufacturers have received a grant, participated in TIP or one of the previous FCS Contracts. We will request flexibility in the contract for a manufacturer to not only replace a raw material with crumb rubber in an existing product but to be allowed to design a new product that would utilize a minimum of five percent crumb rubber with another raw material. This contract allows for enough time to secure manufacturers and develop products if the contract moves through the contract process in a timeline that allows for the contract to perform the requirements. Denise Kennedy, President of DK Enterprises has assembled a team with the full range of qualifications and resources needed in the FCS Program. Denise will serve as Project Manager overseeing and managing all aspects of FCS. William Esparza Consulting Service, the FCS DVBE company will assist with administrative, digital marketing outreach and research as needed. The team also includes 11 committed testing facilities, six individuals with material and testing handling capabilities (e.g., compounders, civil and environmental engineers), and seven individuals that are available to assist the Project Manager and manufacturers through technical assistance. The final FCS qualified candidate
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Section 1 Summary
manufacturers may require additional experts and testing facilities that are better suited for their manufactured process and/or product. It is also understood that approval must be given by the Contract Manager before additional subcontractors can begin working in FCS. If needed, we will also have access to an accredited International Code Council (ICC) inspection team to provide quality control inspections for building construction products. We believe our team can efficiently offer the full range of needed services, but we are prepared to work with additional organizations as required to meet project needs. Three strategies underlie our approach to the FCS project: Strategy: Strong technical knowledge and practical experience deliver tangible results. The Project Manager has been the FCS Contract Manager for two previous FCS contracts and has worked with every identified TDP manufacturer and TDM supplier since 2006 as a subcontractor or contractor and through providing services to obtain Minor and Major Waste Tire Facility permits. Our team understands the technical, logistical and economic challenges of feedstock conversion (see Table 1 below), as well as the potential benefits to manufacturer brands, sales revenue and cost structures. The individuals and testing facilities that are identified as subcontractors are well versed in using recycled rubber. Table 1: Experience Overcomes Challenges Challenge Approach
Manufacturer skepticism and competing priorities may complicate securing feedstock conversion commitments. Shortage of personnel may dissuade some manufacturers wanting to dedicate time, money and resources to developing a product.
Clearly articulating success stories, proven approaches and program benefits secures commitments. Provide as much support as possible. The manufacturers invest time, money and resources many times over the amount initially invested in developing the product. The objective is to show them that the rewards come through the benefits of TIP as well as the technical and testing support. It will take additional efforts in sales and finding the right approach based on the objections. Outreach to candidate manufacturers focuses on high potential products like compression molded and extruded products that can accommodate filler and retain essential performance characteristics. Experience and familiarity with California crumb producers will expedite the supply development process. Identifying test needs in advance sets expectations and allows the team to coordinate with testing companies early.
COVID’s continual impact and uncertainty to businesses (e.g., money, travel, supply chain material, transportation) The issue of crumb rubber chemically bonding with virgin rubber or plastics limits its applications, especially in extrusion molded products. Iterative experimentation with alternative crumb rubber and compounds can slow development of initial prototypes. Some product tests may take months, delaying the ability to firmly establish crumb rubber/compound specifications and launch production during the period of the contract.
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Section 1 Summary
Time and resource constraints may slow manufacturer progress. Beginning the use of crumb rubber requires adjusting current manufacturing practices due to odor, color transfer and production logistics considerations. The allocation of limited CalRecycle resources under FCS must be highly effectively and equitable. Limiting the ability to work with existing TDP manufacturers who are vested in the industry because they have received a grant, technical assistance, TIP or FCS may reduce the number of qualified TIP eligible FCS candidates due to constraints on time to secure them and then time to develop newly designed feedstock conversion tire-derived products. It is anticipated that 5 – 7 candidates is a realistic number of feedstock conversion candidates based on criteria for the selection of new or current TDP manufacturers to include a larger incentive toward technical and material testing services. Understanding how much budget expended toward technical and material testing is enough of an incentive to a manufacturer who is being asked to replace a minimum of five percent of their existing raw material. Material may not be available if other markets consume the size of rubber that is needed to develop a TDP. Initially in FCS, TDM suppliers would only sell full trailer load of crumb rubber due to their demand for rubber. Delays in the Agreement Process with CalRecycle may hinder the ability of the manufacturer to develop the proposed feedstock conversion product in a timely manner. Expectation of Information that CalRecycle expects in the final report, test reports, case studies, etc. and what the manufacturer will agree to could make a difference in which manufacturer wants to participate in FCS. Manufacturers see their information as confidential and do not want it published.
Regular, ongoing communication keeps responsible parties focused on progress deadlines and allows for needed adjustments. Experience allows us to anticipate issues and plan, accordingly, alerting production staff to potential issues. The Activity Plan Summary Report clearly justifies proposed resource allocation among participating firms, tied to anticipated results. Revise and update the potential candidate list of those companies that use virgin rubber, plastic or other material and address which manufacturers have the equipment to Manufacturer the feedstock conversion TDP. Initial qualifying can be performed by phone. Experience has shown that it takes about 40 hours to qualify and build the relationship with one NEW potential eligible candidate that has not used crumb rubber previously or considered crumb rubber replacement for a portion of their existing raw material feedstock. The manufacturers also question whether the incentive to assist with the technical and testing budget warrants their time, equipment, money and investment to alter their product. Previous experience dealing with manufacturers and their constraints and capabilities indicates that this level of replacement of raw material is reasonable. Address with CalRecycle utilizing larger particle sizes than crumb rubber (coarser than 1/4”) to increase volume of use of recycled tire rubber in feedstock conversion projects. Work with CalRecycle during the initial agreement phase to address any issues and limit changes to the Agreement. We need to provide a list of what information the manufacturer is going to be required to provide to the Contractor that is over and above providing technical and testing and certification services and those associated costs.
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Section 1 Summary
Strategy: Ongoing, regular communication with participating manufacturers, service providers and CalRecycle results in timely achievement of established objectives and milestones. Activity Plans will clearly identify roles, responsibilities and date-certain objectives. Our job as Activity Plan Managers is to respectfully keep responsible parties on track, and to identify and overcome obstacles as they may arise. We understand that the keys to success are trust and communication, ever focused on achieving goals. Strategy: Established industry relationships and lessons learned in previous CalRecycle projects allow us to hit the ground running. The Project Manager has collaborated closely with CalRecycle and has provided services in two previous FCS Contracts, the Retread Tire Services Contract and seven contracts as a subcontractor since 2006. The work samples provided in Appendix D highlight this work, including, maximizing TBAP services; feedstock conversion opportunities and barriers; TDP product development best management practices; and an overview of the two previous FCS contract activities. Experience and relationships will enable the Project Team to make every effort to secure market development commitments and successfully deliver assistance services while gathering sensitive data. Table 2 below summarizes our proposed methodology and timeline for completing the project, along with key deliverables and milestones. We have used the timeline provided in the RFP with the understanding that this timeframe may change based on the timeline to go through the contract process and then development of the workplan. Table 2: Summary of Proposed Methodology and Schedule
Outcomes and Target Dates
Task
Methodology
Deliverables
Assume Start Date Task 1: Coordinate with CalRecycle’s Contract Manager to finalize details of the Work Plan based on the Proposal
Acceptance of Agreement and Documentation Contractor to meet with Contract Manager to review the Work Plan provided in the Proposal; fine-tune timelines, tasks, deliverables, including reports, dissemination of information as needed. B. Next, present minor changes if needed to Contract Manager and finalize Work Plan based on CalRecycle comments and approval. No work can begin on Task 2 through Task 5 until the Workplan is finalized. Task 2A: 1) Request a list from CalRecycle of the TDP manufacturers that have participated in CalRecycle marketing materials, presentations and/or
January 1, 2022
Detailed Work Plan
January – February 2022
2A Prospect list.
Task 2: Provide a Summary Report
February – April 2022
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Section 1 Summary
grants and technical assistance including the TIP grant or the previous FCS contract. The CalRecycle list to include the point of contact, type of service and grant funds to better understand and be able to distinguish type of services provided. 2) Request conference attendee lists from building and construction and plastic forums, meetings, and conferences sponsored or co-sponsored by CalRecycle. 3) Reach out to CalRecycle staff or Cal-Biz programs regarding financing, tax credits or technical assistance that would support the increased use of crumb rubber in products and to seek potential leads to add to the final candidate recruiting list. 4) Identify, prioritize and add prospective manufacturers to existing lists. Prepare concise digital FCS Program brochure communicating program benefits and process: Update and present a candidate questionnaire to Contract Manager for review and approval which was used in the previous FCS. Contact top 20 candidates with aim to secure 5 - 8 new manufacturer commitments. Contractor shall then execute meetings that have been approved by the Contract Manager. Intent will be to confirm eligibility, solicit interest and secure commitment. Work with assigned qualified CalRecycle approved manufacturers; document product data, support needs and
Identifying Individual Manufacturer Activity Plans and Budgets for Participating Manufacturers, and Qualifying Processors to Provide Crumb Rubber
2B. Conduct Outreach Marketing Material and Secure Commitments
2B. Marketing material, execution of meetings with potential manufacturers.
February – April 2022
2C. Prepare Draft Activity Plans
2C. Individual manufacturer activity plans and corresponding
April – July 2022
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Section 1 Summary
crumb rubber use projections; develop a plan with specific goals, individual accountability, incentives for timeliness; identify potential roadblocks and strategies. Identify tests and certifications if known and/or estimate costs for the budgeted activities. It may be necessary to consult with technical experts for input on the proposed activity plans and budgets. Compile activity plans and summary information in a single report; identify issues of concern/priority to CalRecycle; collaborate to identify optimal use of contract resources to maximize results. Work with CalRecycle and participating firms to identify minimum qualification criteria for crumb rubber producers based on ASTM test results; quality systems, operational practices and commitments to work towards FCS goals. Contractor will provide a sample letter that the supplier would need to sign assuring Contractor and CalRecycle of the material size(s) that may be used. It is understood that when developing a product, it is not always known the exact particle size that will be used. It is understood that a Material Safety Data Sheet will be required from the supplier. On site sampling (extraction and collection) to address the sizes of material that may be available for the product manufacturers.
budgets, Summary Report, and technical assistance priority process.
2D. Prepare Summary Report and Amend Contract
2D. Summary Report, prioritized list of prospective manufacturers.
July – September 2022
2E. Qualify Processors
2E. List of qualified processors and testing results.
July 2022 – December 2022
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Section 1 Summary
3. Work with Manufacturers to Implement Activity Plans
Contractor to engage with the manufacturers and execute the individual manufacturer’s activity plans that will include technical assistance, material testing and possibly certification benefits. Authorization for lab budgets and testing to be approved by Project Manager. Collaborate with CalRecycle to refine the need, schedule, sample collection procedures and other details for crumb rubber material testing. Request CalRecycle to provide a 30- month notification schedule of planned TIP grant solicitations. Efficiently gather samples and conduct tests based on ASTM standards and specifications identified for each product during the project. Contractor will provide the required tests as identified in the proposal. Keep CalRecycle apprised of progress and issues as they arise; submit monthly progress and budget reports along with report copies; manage materials on shared dropbox site abiding by confidentiality policies; submit draft and final report, along with case studies, covering all project work.
3. Activity summarized in monthly progress reports,
Included with monthly reports.
4. Crumb Rubber Material Testing
4. Test result reports
Included with monthly reports
5. Reporting
A. Monthly Progress Reports A. Draft Final Report and Final Report B. Present summary and results
A. Monthly, starting January 2022 B. Draft by June 1, 2024. Final Report by July 1, 2024. C. July 1, 2024
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Section 2 Methodology
2. METHODOLOGY Table 2 in Section 1 summarized our proposed timeline and methodology for completing contract tasks, and Table 1 identified approaches for overcoming several anticipated challenges. This section describes in more detail how the DK Enterprises Team will perform the work and collaborate with CalRecycle, participating businesses and others to maximize project benefits. Objective: As soon as possible after contract approval, develop an approved work plan, schedule and budget for the FCS project. Immediately upon receiving Notice to Proceed, the Project Manager will be prepared to conduct a kickoff meeting to discuss the project and receive feedback on the work plan as described in this proposal. We will then submit a draft work plan based on this feedback within one week of the kickoff meeting and will revise the draft again within one week of receiving CalRecycle’s written comments. This will ensure that the team is authorized to begin task work at the earliest possible moment. • Specific roles and coordination steps among the contractor team, CalRecycle Staff and participating firms, especially coordination of FCS activities with the TIP. • What information will be expected for the final reports so that the manufacturers know that before agreeing to participate. • What is the schedule for future TIP grant cycles during the term of this contract so that it might be more efficient to sequence FCS Task 2 and Task 4 with future TIP cycles; • Discuss the expected challenges, barriers and approaches and ways to overcoming them and expectations for project outcomes. • Prefer using Dropbox as the shared folder for information with the Contract Manager. It is understood the Contract Manager may copy the files to a SharePoint folder for CalRecycle. • Will a TIP eligible manufacturer be allowed to design and develop a new product using a minimum of five percent tire crumb rubber with another raw material versus taking an existing product and replacing that product’s raw material with a minimum of five percent crumb rubber. We will seek written Work Plan approval prior to beginning work on any tasks. We anticipate updating the Work Plan as needed, including after the contract amendment step under Task 2D. Task 1: Develop Project Work Plan We would like to discuss and clarify the following points at the kickoff meeting, among others:
Task 1 Deliverables:
• Draft and final work plan; revisions as required during the contract period.
Section 2 Methodology
Task 2: Identify Prospective Manufacturers, Conduct Marketing Outreach, Develop Individual Manufacturer Activity Plans and Budgets for Participating Manufacturers, and Qualify Processors to Provide Crumb Rubber Task 2 will be led by Denise Kennedy with support by our technical and material testing specialist where needed. Objective: Develop a list of California qualified interested manufacturers, compounders and material specialist that can help to identify additional qualified FCS manufacturing candidate. Under Task 2A, the Contractor is to research and identify prospective California rubber (virgin rubber) and appropriate plastic manufacturers with sales in excess of $1 million for the previous year that may be interested in designing and developing feedstock conversion products. The manufacturer would be asked to replace their current raw material (e.g., virgin rubber, plastic, aggregate, other) with a minimum of five percent recycled tire crumb rubber. The Contractor is being instructed to focus on California TDP manufacturers that have not previously participated in various CalRecycle grants and technical assistance, including the TIP grants or the previous FCS Contract. The California TDP manufacturers that have participated in CalRecycle grants and the FCS represent between 85 to 95 percent of the California tire-derived product manufacturers. Therefore, we will initially review existing lists and research and add to those lists. The best source is by word of mouth versus buying additional lists that are not always current. We acknowledge that not every company on the lists that have been developed and we know that not every company on the list meets the eligibility criteria of FCS/TIP. Our team is requesting the most updated list or lists of TDP manufacturers that have participated in the CalRecycle grants, including TIP grants for a specified range of years, since our team is being asked not to focus on these TDP manufacturers. Our team is asking CalRecycle to include the contact person, contact information, year of grant, name of grant, type of grant and volume of tire rubber used for each grant. Our team is also requesting CalRecycle provide lists of attendees of CalRecycle sponsored or co- sponsored conferences, forums and meetings for the building and construction and plastic industries or other resources that may be available. To date the best source for TIP and FCS have been industry referrals, CalRecycle grantees, associates, association members, and networking contacts. We will also draw from our proposed service providers, the Rubber and Plastic Directory , the Rubber Red Book , the Blue Book Building & Construction Network and possible procurements and subscriptions from other relevant databases, lists and reports. The deliverable list will be compiled in an Excel Spreadsheet, retaining information on lead sources, pertinent data, previous CalRecycle grants, year and use of rubber (if known) and notes from contacting the firms. We will seek to identify a top priority candidate pool of approximately 50 firms and then reduce the list to the top 20 qualified firms in Task 2B. 2A. Prepare Prioritized List of Prospective Manufacturers
Task 2A Deliverables:
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Section 2 Methodology
• A spreadsheet identifying contact information (name, address, phone, email, if available) on all identified California rubber and plastics manufacturers, along with gathered information, and identification of priorities. • Purchased Lists (unknown yet)
2B. Conduct Outreach to Manufacturers and Secure Commitments
Objective: Identify firms meeting the RFP and TIP criteria who verbally (at this stage) commit to participate in the program and to pursue feedstock conversion objectives. Based on guidance provided at the kickoff meeting and embodied in the approved Work Plan, the Project Manager will most likely recommend to the Contract Manager using a similar two to four-page digital announcement and the hard copy pdf version similar to what was used in the previous FCS. Subject to discussion with CalRecycle, we envision the announcement to include potential benefits of tire rubber; information on the availability of crumb rubber; a short description of available funding and links to CalRecycle information and the California Tire-Derived Product Catalog. The budget in Task 2 will be directed toward finding five to seven manufacturers based on the contract timeline to research, design, develop, test, certify and manufacturer a commercial product. Every intent will be to find manufacturers that would use higher volumes of crumb rubber. Our experience has shown that there is a need for lengthy and repeated phone conversations with manufacturers before they are able to make a commitment to feedstock conversion, and that it is far more effective to work closely with a few strong candidates than to spend a small amount of time with many candidates. Taking these considerations into account, we have budgeted under Task 2B to focus outreach on an estimated 20 candidates (based on available information), with the goal of identifying four to six final feedstock conversion firms to receive services under the FCS program. The pool of experienced users in crumb rubber are not to be the focus of this contract and therefore will require initially an information and sales approach to find interested manufacturers that our team believes would be viable candidates. Based on our team’s experience, we know that there will be a steep learning curve for the manufacturers that have not used tire rubber previously with a very short window. If the technical and material testing incentives are high enough and the manufacturers have the time and interest in learning about the benefits, we believe our team will find some interested manufacturers to participate in this FCS. We learned during the previous FCS contractors that the manufacturers who were experienced in working with crumb rubber spent far more time, money and personnel than anticipated in trying to develop a feedstock conversion product during a nine-month timetable. After our efforts through phone, emails and distributing the digital and hard copy brochure, we will qualify the more interested manufacturers by asking them to complete a candidate questionnaire. That questionnaire was a great time-saver in the previous FCS because it helped us to understand how much they knew about what they wanted to accomplish; what they knew about tire rubber; and the particle size they thought they needed; and rather they qualified on a financial level. After the selection of the more qualified manufacturers, we would then visit the companies as identified in 2C to validate their interest and go into more detail about what would be expected of them as a manufacturer, their needs for technical, material testing and regulatory and/or certification before the product could be sold commercially. We will track the outcomes of our phone conversations in a spreadsheet.
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Section 2 Methodology
There are five levels required to develop a commercial product including: 1) Idea generation (customers and users, marketing research, competitors, other markets); 2) Idea screening (strengths and weakness, market trends and return on investment; 3) Idea evaluation (concept testing, reactions from customers, rough estimates of costs, sales and profits); 4) Product Development (R&D, develop model, test market mix, revise plans as needed, ROI); and 5) Commercialization (finalize product and marketing plan, start production roll-out, final ROI). Through years of experience of finding and securing manufacturers to utilize crumb rubber, our team knows firsthand that it will take an average of 30 - 40 hours to receive a commitment from a new manufacturer that has not used tire rubber before. Fortunately, we do have experience in qualifying companies through a list of questions and specific criteria that would be a part of the deliverables. The company themselves will usually perform their own due diligence, including addressing the economics of altering the design, equipment requirements, additional testing, satisfying regulatory requirements, impact on production, and comparison of the feedstock benefits and cost. With approval of the Contract Manager, we are recommending our team focus on securing 5 – 7 manufacturers (as they will not be previous users of tire rubber in most cases) and provide a higher dollar incentive for technical, testing and certification (if required). The new manufacturers will have 24 months to design, develop, test, certify and certify a new commercial product that could cost them hundreds of thousands of dollars for this effort. It usually takes 24 – 42 months to develop a commercial product. Our intent will be made to find manufacturers that may use higher volumes of crumb rubber because in most cases of feedstock conversion products, use lower volumes of crumb rubber especially in plastics and calendared rubber. • Draft and final marketing materials in the form of a two-to-four-page digital brochure announcement for use in emailing to prospective candidates; • A Candidate Questionnaire; • A spreadsheet detailing the phone contacts made, level of interest by firms contacted, and identifying which firms have made a verbal commitment, and details on their products and potential crumb use; and • A list of firms for whom we propose to develop action plans upon the approval of the list of the Contract Manager. Task 2B Deliverables: Objective: The Project Team will first seek CalRecycle approval of the firms for whom we will develop Activity Plans. As discussed above under Task2B. Our team is recommending we select 5 - 7 qualified and committed manufacturers that agree to replace the raw material in their existing product(s) with a minimum of five percent crumb rubber. The Activity Plans will be based on information requested and received from the candidate manufacturer. We will set up in-person meetings, if possible, with the manufacturers to review the Activity Plans. The manufacturers will be asked to sign the Activity Plan documenting measurable objectives, responsibilities and details needed to guide timely completion. Developing Activity Plans requires close collaboration between the FCS team and the participating manufacturers, the TDM suppliers and the service providers. We need total commitment and investment on the part of the manufacturer, and it is essential that we know what the manufacturer expects from FCS to ensure the manufacturer will make every effort to produce a product. The 2C. Prepare Activity Plans
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Section 2 Methodology
Candidate Questionnaire that was created in the previous FCS contracts would be utilized again. We created an Activity Plan format that was utilized during the previous FCS contracts that was beneficial in outlining what needed to be accomplished after we received and reviewed the Candidate Questionnaire. Both documents require a response that further qualifies the manufacturer and information about their existing product(s) of interest including historical business information; gross revenue; product information; standards, certifications and regulatory requirements; and more. We have provided a comprehensive list of service providers that will be beneficial to FCS. However, depending on the product and certification requirements, we may still need to add additional labs or technical service providers. We envision enclosing a written agreement with the manufacturer of the draft Activity Plan. We will then work with the firm as needed via telephone and email to finalize information gathered and draft the Activity Plan. As needed and as budget allows, we will tap our manufacturing technical assistance experts for feedback and advice as we develop the plans, including in some cases including them in conference calls with the firms. Section 5, Qualifications and Resources, details the expertise, services and some of the types of tests or certifications we envision may be needed in the Activity Plans (depends on the product requirements), and our response to the RFP Scenarios in Section 3 provides examples. Subject to CalRecycle feedback, we envision one Activity Plan will be prepared for each participating manufacturer that incorporates details related to all the firm’s feedstock conversion products covered in the FCS program. Specific milestones are likely to include:
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