Showing posts with label e-cycles. Show all posts
Showing posts with label e-cycles. Show all posts

2013 Good Point Recycling End Markets: 6 Percent Reuse

Good Point Recycling of Middlebury Vermont is now preparing our 1st Quarter Report and Annual 2013 Report for the Vermont Agency of Natural Resources.   Having just had these numbers audited under our R2 Solutions annual surveillance in March, we have more than enough data to demonstrate what kind of a company we are.


The most obvious change over the past 4 years was our decision to bring demanufacturing jobs in house, doing the television and monitor teardown here in Addison County.  Our payroll hit $26,000 per week, much of it in time-and-a-half (OT), and we hired more experienced people to do it.  So Red "CRT whole unit outsource" went down, and blue "Bare CRT tube glass", and associated plastic, went way up.

Something that surprises people is how little we export, and the reasons it has declined.  Good Point never exported more than 30% of the material, I think the peak (28%) was in during the years (2006-8) when we were buying and selling monitors from other companies, for refurbishing in Malaysia and redistribution in Egypt.

Why the decline?  Was it stricter EPA enforcement?  
Responsible Recyclers standards?  
Pressure from Basel Action Network?   
Strict Vermont E-Cycles Program standards?

No, none of these explains the fall from 28% export to 6%.  It's the marketplace.  And there's nothing ghoulish, witches brewy, noxious, or radioactive going on.  There's no Batman villian in the "e-waste" trade.  When the reuse market finds another source, no one wants to import it any more. It's scrap.  Metal and Plastic.  Recycling.  Boring.  Laundrymat scale boring.


Heroin Distribution and Procurement Corruption: The Vermont Experience

"Do you know the difference between education and experience? Education is when you read the fine print; experience is what you get when you don't."  Pete Seeger 1919-2014
This month, the Governor of Vermont, Peter Schumlin, made a very brave "State of the State" address, admitting Vermont has a problem - opiates, heroin and meth.

Admitting you have a problem is the first step in Vermont's program.    Thinking "it's a city problem" and we don't need treatment centers is a big mistake.

Another big mistake?  Unlike neighboring states, Vermont has no "procurement law".   It has a representative at BGS on National Association of State Purchasing Officials (NASPO.org).   But when Vermont's administration of it's "E-waste" contract was questioned - not just by the lower and more qualified (per ANR, not in dispute) bidder (me), but by the Solid Waste Districts (customers), and Superior Court Justice (in an injunction) Vermont ANR's response was to quash the FOIA request, and use a "calendar tactic" (redirecting the injunction to Environmental Court, adding a 7 month delay).  (For a reporters coverage of curious contract language written outside of the RFP for CWST, see this article in Vermont Digger, complete with changed signature dates.  Also see Vermont's refusal of the Freedom of Information Act Request at bottom of this blog).

If Vermont thinks it doesn't need a procurement law, like Massachusetts Chapter 30B, it's travelling down the same path as the heroin denial of the past decade.

Yeah, I love my job, and I'm proud of my work, but I'll have other opportunities if ANR's staff's stated objective - to replace Good Point Recycling - is carried out.  And yes, ANR's program manager actually SAID that prior to the RFP being issued (which by itself should have warned the state it needs procurement training).  David Mears, her boss, actually referred to "procurement laws" in defending the state's contracting with Casella (strategically hostile to the Manufacturer Independent Plan, to the point of possible anti-trust and flow control).

It's not a great position to be in, waiving a bloody shirt, crying over a lost bid and hostile regulators.   Why did I do it?  I did it in response to the letter below, from the wife of a subcontractor.  The real loser is the working class.


Good Morning Robin,
I am Harry XXXXs wife, remember he works [nonprofit subcontractor]? I have taken this way out step to contact you because for 5 years now I have constantly had this thought that will not leave me alone that Harry should be working for you. As you probably know Harry at home created a program that can wipe and refurbish up to 50 computers at a time. Harry is also a Linux person, that is recognized around the world and becoming more popular every year. He installs Linux on PC'S that have a tag that is destroyed so Microsoft does not recognize it.
My thought Robin, if you and Harry could see a future in working together, Harry could refurbish your product here at our home. He would still work for XXXX, but in my heart I feel your business would be the best for Harry's
future. Harry is responsible, honest and quiet unless you get him going, then he can tell jokes like no one else, a team player.
I had hopes that you would have had more to do with [our nonprofit] I felt it would have been a good thing. Maybe you could stop in the store on XXX St. in XXX, Vermont, and just look around. No one knows I am writing you, XXX loves what he does and I have felt with your business mind, could be a winning partnership.
Thank you for your consideration on this matter.
Helen XXXX
9 South XXXX St.
XXXXX, Vt. 05XXX

Vermont's Heart

The Governor of Vermont, Peter Schumlin, wants environmental jobs, and wants R2 certification, and wants to wear a white hat.   But he knows he has a problem at the Agency of Natural Resources.   The Agency is protecting itself by using the very line of appeals to clog an Environmental Court docket, essentially shielding itself from bid challenges.

Not With a Whimper



Chapter One:  The Deman Crew 


The light clink of a dropped drill bit onto a metal table, the slow whirring of an air machine winding down.  The sweep of a last dragged empty "gaylord" box on a dry concrete floor.  Swept four times that day, the floor seems dirty again, from the action of pounding square boxes of plastic, circuits, wires, and heavy glass bulbs called "cathode ray tubes".   Fourteen men's sweat scented the room that day.  Men from East Europe, from Mexico, from South America, and from Asia had worked in this room over the past decade.  Old men, who could remember the 1970's television sets were unaffordable, brand new.  Young men, seventeen, who had never held a pneumatic drill before.   It was a hard job, and not many people stayed in it.

"54-bit Driver Kit" IFIXIT
The first and most important lesson for the men at the demanufacturing tables, and the women in Sonora Mexico who copy them, is that you need your gloves.  They are irritating and clumsy, and when you must switch constantly between phillips screws, hex bits, metric and English, it's tempting to leave the gloves off, so you can keep up with the experienced demanufacturing workers.  It will save several seconds if you have bare fingers to pick out the next drill bit to match the new layer of screws beneath the brightly colored acrylic Imac case.   But the numbers will catch up with you.  You will eventually, after several dozen successful days of demanufacturing in naked efficiency, cut the hell out of your hand, and lose all the time you gained "working nekkid".  A safe workplace really is the most efficent workplace.

The second lesson is to take the gloves off at the end of the shift and to carefully examine the pile of screws swept at the bottom of the worktable.  The Hex 0.9 bit looks remarkably like scrap metal.  If you sweep up in a hurry, and it goes into the massive haystack of scrap screws, your time tomorrow will suffer.

The third lesson?  Watch out.  There is theft in the workplace.  Some new person, working at the entry level computer take-apart table beside you might lose his Hex 0.9 bit.  The fact he was unemployed in a state with 5% unemployment might mean he's an honest, hard working bootstrapper like you.  Or it might mean he's recently out of treatment for heroin or meth addiction.  Good Point Recycling hires a lot of people looking for a second chance.   But statistically, if they are working nekkid-hands, they are likely to lose their drill bits, and if for some reason they are taking their lunch break a minute after the bell (rather than, as usually, 3 minutes before), then he might have lost some drill bits yesterday, and he might have his eyes on your table.

The experienced disassembly staffer has learned lessons that apply in an auto repair shop or an assembly line.


During the typical day at Good Point Recycling, about 38,000 lbs of electronics came through the door of the Deman Warehouse.   Deman - or "de-manufacturing", or "disassembly" - was the title of the job at the heavy end of the Paretto Principle.
The "80-20 Rule", as the Paretto Estimate is typically called, says that 20 percent of material is worth 80 percent of the money.  Twenty percent of the clients are worth eighty percent of the gross income.  The men who worked in this room, today, handled the other.  Eighty percent of the used electronics which Good Point Recycling collects are torn down the their raw material.   Steel from computer casings, printers whose software didn't survive an operating system upgrade, the ten inch motherboards from Pentium 4s deemed "too slow" for the market, and 150 pound CRT televisions.  Lots of televisions.

900 pound bales of black plastic from "Wi Screens" were pushed against the wall.  Weee Screens were the nickname for the large LCD televisions which had days before been in front of a kid with a Nintendo control gadget in hand, the wrist guard unattached.  A simulated bowling alley, a launched virtual 16 pound ball, transformed into a flying 5 ounce Wii-mote which with grim reality flew from the hand of a thirteen year old boy, into the bottom right corner of the OLED 3D Smart Plasma television, cracking the display panel and leaving a small dent behind.   Thousands and thousands of damaged LCDs, or forgotten 17 inch white CRT monitors, or wooden TV-stereo consoles, come into Good Point Recycling every year.  And in this room, the Deman Room, they would be returned to their maker.

In peak weeks, during the summer, the payroll at Good Point was about $26,000.   That's a small business, by any definition, but in a small town like Middlebury Vermont, it paid for a lot of apartment rentals, a lot of diapers, and a lot of pizza.   The payroll was important to the county.   It came from outside the state, most recently from wire transfers from major corporations like Dell, Acer, Samsung, and Vizio.  Under the Stewardship Laws, most Americans in the Northeast states no longer pay $20 to drop off their used computer or television, the way they must pay for a refrigerator or air conditioner.

During the peak summer months, most of that payroll was generated here in this Deman Room, where men frequently worked 12 hour days, anxious for the time and a half overtime pay.  Some worked 7 days per week if they could get away with it.   If the doors were left unlocked in the morning, some men would come in, turn on the lights, punch the clock, and sneak in an extra hour of work at 5 AM.

Not everyone wants to work that way, between whirring pneumatic drills, crushing balers, a droning air compressor and clunks of heavy TVS from disassembled palletloads.  It's physical work, and surprisingly dirty work, considering almost everything is an electronic device which served its whole life in a livingroom, bedroom, or office.   Twenty years of dust sediment may clot the fan of a power supply.

High school drop outs, some of them in their 50s, come and try to do the job.  Some, like Peter, excel at it.  A bulky man, half deaf in one ear and half blind in one eye, Peter was raised and taught to work by a German baker as a teenager.   He had to be at the bakery at 4 AM back then, and if he wasn't he heard about it in a way he'd never want to hear again.   He went on to work for 19 years at Standard Register, a paper forms company in Middlebury which closed in 2008, laying off hundreds of blue and white collar workers.

Peter lifts the big plastic backs from the TVs, or the jellybean colored Imac acrylic pieces, over his shoulders, dropping them into a downstroke baler.  When he can no longer fit more pieces into the mouth of the baler, Peter closes the steel mesh door, and hits the large red power button.   Tons of force ram down slowly onto the material, creating a loud crushing and popping and bending of plastic.

Crushed.

Like competitors to a very big neighbor.

Procurement 101: Vermont E-Cycles Lessons

As the recycling program manager at Massachusetts DEP in the 1990s, I oversaw something like 40 contracts per year (if you include 03 consultant hires).  We went through one of the biggest bid challenges, for the Springfield Materials Recovery Facility, which saved the state about $1 million dollars per year by switching from an incumbent vendor.

We knew that if the incumbent vendor lost, that they were certain to challenge the bid, so I had lots of time with attorneys at MA DEP making sure that each step of our bid evaluation was transparent, and run by NASPO.org standards (National Association of State Procurement Officers).  (Link to Massachusetts Chapter 30B Guidance on Procurement)

The incumbent Springfield MRF vendor did appeal, and they even won an injunction keeping us from awarding the contract to a new vendor.  Even though the state was losing roughly $500,000 during the six month injunction, however, we saw our jobs as making a smooth and continuous transition, and further, to show that Massachusetts DEP did not even want to suffer the APPEARANCE of impropriety.  By NASPO standards, the appearance of shady procurement is just as costly to society as impropriety itself.  Once an injunction is granted, the best thing is to sit down, in full transparency, and let the protester's case be heard.

So we patiently worked with the incumbent vendor, in as professional a manner as we could, until the court hearing.  The court found The Massachusetts DEP's contract procurement process was valid and dismissed the injunction.  But like an appealed referee's call in an NFL game, no one accused anyone of doing anything in bad faith.  And at this time, I'm not making any noise about bad faith in Vermont.

You will see in the news cycle a number of stories about the State of Vermont's E-Cycles ("e-waste") contract procurement, which my company, along with NRRA.net, administered for the past 27 months, with generally rave reviews.   The truth is that before the Vermont electronics recycling law had even passed, my company had already set up the infrastructure, and had a turnkey proposal in place in 2011.

This is not the time or the place to air our concerns about the new 2014 contract, or the merits of the two proposals the state decided between.  But this is a time to look at Vermont Procurement laws, and ask why "safety railings" are not in place to keep vendors and regulators from having it out in the press.  That's what NASPO standards were created to avoid.

"Does the injunction save the state money while providing the public assurance to a fair review of the process?"  If the answers to both questions is "yes", why fight the injunction?  Save tax money, hear the appeal out, and start the new contract when you've won.