FCS3

Section 3 Scenarios

• Does the company have assurances that they have market demand for the various products? Because a client may ask to have the company make the product does not mean the demand is there for the product. • What are their customers and product requirements? • Has the company researched other products made by competitors that they would want to manufacturer that would require converting a portion of the raw material in each product with crumb rubber? • Has the company identified the regulatory, testing and certifications required in the building industry? • Has the company performed an evaluation of the cost to redesign and/or the development of new products with and without an incentive? • Has the company addressed the cost of production that includes 10 products? • Does the company have a timeline that would include a minimum of 24 – 36 months to design, test, certify and market 10 commercial products for their own company or for other companies? • Does the company have their own testing lab? • Does the company have their own equipment to produce the one or more products, or would the product be outsourced? • Has the company addressed the changing costs in the feedstock used to produce the products? ABC Roofing is a 40-year-old company with sales of $100 million per year that produces a variety of asphalt roofing and coating products. The company is interested in reducing its cost of goods sold and being more “green.” It may be able to use 5% - 10% of 30 mesh and/or finer crumb rubber in 8 products. Many of its products have a 25 or 50 year “lifetime” performance guarantee. It is essential that product performance (especially longevity) be equal or better than those not using crumb rubber. Describe how you would identify the potential crumb rubber usage, appropriate mesh size and original source of the rubber; identify the appropriate technical assistance (product sample production, applicable [ASTM and/or alternative] testing and certifications) and corresponding budget; and prioritize the 8 products. Provide an activity plan and budget for the top 5 products. Describe how you would implement the activity plan and provide an appropriate timeline. What are other important considerations and unique aspects of using crumb rubber in an asphalt roofing or coating product? Identify 3 benefits that can be communicated to ABC Roofing to assist in their decision to use crumb rubber. For this scenario, there is relatively no information provided on the nature or use of the product or the manufacturing capabilities to identify the possibility of developing a minimum of five products. The company would be required as per the guidelines of this feedstock conversion contract to replace a minimum of five percent of the virgin rubber with crumb rubber in their existing product and/or manufacture a product that has been made previously by another company that would now be made using a portion of crumb rubber to replace the virgin rubber. It has not been identified in this RFP that the manufacturer can produce a new product that might have been all virgin rubber and/or other raw material and now would be made with all crumb rubber though it has been of interest to some manufacturers. Scenario A Scenario A RFP Description:

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