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Intent of the request for proposal (RFP)
Jul 26, 2022
Erin Dunne

Delterra is requesting proposals from interested parties to help improve the market value and stability of sales for recycled plastic materials in Argentina.

Background to Delterra

Delterra is an environmental nonprofit on a mission to create a world where human activities protect and restore a healthy planet. Delterra’s founding partner is McKinsey & Company, and its flagship initiative, Rethinking Recycling, works with communities in emerging economies to build rapidly scalable, self-sustaining waste management and recycling ecosystems that redirect waste into productive use while improving the lives of the people it touches. In the coming years, Delterra will add other initiatives to its portfolio, all with a view to developing innovative scalable solutions that redesign human systems for the good of people and the planet. Learn more at: https://www.delterra.org

Our model for Rethinking Recycling is built around four pillars that together will drive economically sustainable and scalable recycling systems globally:

  • Secure sustained demand from industry players. By understanding and addressing the unmet needs of the end market for recycled materials, we aim to generate new purchase commitments from industry players that cover the full recyclable waste stream.
  • Secure cleaner supply from communities through behavior change and service improvements. To capture the full volume and value of recyclable material, we must collect the whole waste stream with clear separation of wet organics and dry recyclables (and residual waste).
  • Ensure cost-effective, ethical operations throughout the recycling value chain. To provide end markets with quality, quantity, and price-competitiveness of recycling products, the recycling supply chain must be highly productive and efficient.
  • Apply digital innovation to improve transparency, efficiency, and user experience throughout the system. Digital solutions such as automated data tracking, logistics optimization, services through mobile phones and smartphones, and secure verified transaction platforms all have enormous potential to shift the economics and environmental outcomes of the recycling system, while also driving user satisfaction and participation.

 

Rethinking Recycling is currently operational in Argentina and Indonesia. For more detail please see attached document introducing the initiative and www.delterra.org.

Background on Delterra Argentina

In 2018, Delterra launched its proof-of-concept in the iconic informal settlement of Barrio Mugica (formerly Barrio 31) in Buenos Aires, where we have achieved recycling and community participation rates higher than any other similar neighborhood and most cities in Latin America.

Building on our work in Barrio Mugica, we are now expanding our program to demonstrate the business case and community benefit of a recycling system at the scale of a full municipality. In late 2020 we partnered with the municipality of Olavarría, a city of 120,000 people in the Province of Buenos Aires, to pilot our full value chain approach: working with the municipal government, the local recycling cooperative, and community leaders to maximize material recovery upstream (both through recycling and composting), and working with local and regional value chain players to test market innovations to stabilize supply chains and improve pricing of recyclables.

Both our programs in Barrio Mugica and Olavarría are proving that recycling can be introduced in communities of different units of scale and a sustainable business case can be created. Looking ahead, our strategy is focused on expanding these solutions to new cities in Argentina to achieve regional and national scale and impact.

We are doing so by working with a Cohort of cities that we launched including Bahía Blanca, Bariloche, Mendoza City and Posadas. Furthermore, we are planning a second cohort with the cities of Cordoba, Corrientes, General Pueyrredon, San Luis and Tres de Febrero, Our support to the cities encompasses what we have defined as 6 dimensions for cities to transition to a circular economy. See the exhibit below. For each of the dimensions, and subdimensions therein, we are gathering expertise, collecting best practices and developing solutions. Internally, we are also largely organized along these 6 dimensions and have dedicated team members to each.

Within the offtake & market demand bucket we’re seeking support to improve the sales and offtake of recycled and composted materials collected in the sorting centers of Cohort 1 and 2.

Statement of work

Support in improving the offtake and sales of recycled and compostable materials of the cities in Delterra’s program

The solution should be composed of the following delivery components:

  • Connecting cities in Delterra’s program. For the period of 2022, the work shall first focus on 5 cities (Olavarría, Bahía, Blanca, Bariloche, Mendoza and Posadas). Per 2023, the scope will be expanded to include 5 more cities (Mar del Plata, Olavarria, Corrientes, Cordoba, San Juan, San Luis). Note that the composition of cities in the program may change over time.
  • Price Observatory. Quarterly price survey of recoverable materials in the market
  • Capability building of sorting centers / cooperatives: with a focus on best practices for classification and conditioning of material to market
  • Support to develop and introduce material traceability in sorting centers across Argentina
  • Regularly reporting of national developments. Quarterly reports on the state of recycling in Argentina

 

Way of working

Delterra is committed to working with you in an agile manner. This means:

  • Introducing cities in our programs to you
  • Prioritizing opportunities for cities together with you
  • Approaching potential funders and partners together

 

This means that you should anticipate being committed to an agile way of working, which should include:

  • A team to work with on a regular basis
  • Bi-weekly meeting to share progress, explore opportunities and set priorities
  • Set quarterly OKRs and regular reviews against progress

 

The selected firm will be available for bi-weekly meetings and periodical programmed phone calls and as needed with the rest of the team to ensure consistent communication and alignment on active tasks and deliverables. The firm will be expected to travel frequently to the cities in our program

Timeline

We anticipate an initial contract-length of 1 years including a performance reviews every 6 months. During the performance review the contract may be terminated by Delterra or the provider if the agreed upon deliverables are not met.

Budget structure

In your proposal, please include a budget estimate for the scope of work

IP ownership

  • Delterra retains the rights to sell access to the Material Traceability tool related to its programs to end users
  • Delterra retains the exclusive rights to sell plastic credits related to the programmatic efforts in this collaboration

 

Proposal Format & Content

Proposals should be concise and limited to information requested, no longer than 15 pages, Times New Roman 11 font size, 1” page margins, excluding appendices. The asterisked components below are what can be included in the appendices. Proposals can include a maximum of 20 URLs or external references. Each proposal shall include the following information:

  • Proposed solutions. Provide a plan for delivering the features outlined in the “Statement of Work” and “Way of Working”.
  • Costs: Submit a cost proposal using the provided template including a proposed amount for the pilot and the overall cost to complete the entire Scope of Work.
    Proposals must include a list of proposed personnel* who will work on the project. Cost proposals must include an estimate for travel-related expenses.

 

An electronic PDF version of the proposal must be submitted to Reinier van der Lely at reinier@delterra.org

RFP Process 

Bidders can submit their proposal in one sending to Reinier van der Lely by 1 August 2022 at reinier@delterra.org.

Selection Process 

The selection of a firm will be made based on experience and qualifications; ability of proposed approach to meet the needs of the organization; and cost effectiveness. The selected agency will be notified no later than a week after the proposal deadline and will be asked to respond to final negotiation requests and questions based on the review provided by the team.

The selected company will commence work within the two weeks subsequent to final negotiation.