RFP Issued Biosolids Class A Marketing Program

Due Date 30-AUG-2024 14:30:00 Award Date Not Specified Time Zone Eastern Time

Note Pre-proposal Conference will be held August 20, 2024 at 1:00 p.m. EST via Microsoft Teams (virtual).

Offeror MUST RSVP by August 19, 2024 at 5:00p.m. EST to jstarowicz@hrsd.com to receive the meeting invite, Meeting ID and Passcode.

Please submit your response online only:

Organization HRSD

Purchaser Starowicz, Jaclyn

Phone 757-460-7317

Email jstarowicz@hrsd.com

I. PURPOSE

A. Purpose

The purpose of this Request for Proposal, RFP #407238, is to solicit sealed proposals to establish a contract through competitive negotiations for the purpose of a Biosolids Marketing Program for the Water Quality.

II. BACKGROUND

A. Background

HRSD is a political subdivision of the Commonwealth of Virginia. Our mission is to protect public health and the waters of Hampton Roads by treating wastewater effectively.

HRSD currently provides wastewater treatment services for 20 counties and cities with a population of about 1.9 million. HRSD owns and operates eight major wastewater treatment plants and eight smaller plants in eastern Virginia and the Eastern Shore with a combined capacity of 225 million gallons per day average, as well as, a collection system comprised of more than 500 miles of pipes and more than 100 pump stations. For more information about HRSD, please visit www.hrsd.com.

The Atlantic Treatment Plant is HRSD’s largest wastewater treatment plant with a design flow rate of 54 million gallons per day (MGD) with a typical flow of 45 MGD. HRSD has been successfully recycling NutriGreenTM biosolids to farmland in our region for more than 30 years. Approximately 1,500 acres receive the product each year. NutriGreenTM biosolids are produced at HRSD’s Atlantic Treatment Plant, stored seasonally on-site, and  land applied by an external contractor. NutriGreenTM biosolids are typically land applied on farmland that grows corn, small grains, and soybeans.

Since 2020, HRSD has produced high quality Class A biosolids through the thermal hydrolysis process (THP) followed by mesophilic anaerobic digestion. Digested biosolids are centrifuge dewatered to approximately 30 percent dry solids content and are then aerobically windrowed until a dry solids content of approximately 50-60 percent dry solids is attained. Atlantic Treatment Plant has two covered concrete pads sufficient for annual stockpiling of NutriGreenTM products and windrow curing operations. HRSD annual dry solids production is variable and is estimated at approximately 16 dry tons per day (DTPD). For calendar year 2023 we produced

5,257 dry metric tons. Aerobically cured biosolids are currently stockpiled on-site and land applied as Class A biosolids.

A recent biosolids quality statement is included as attachment #1 to this RFP.

III. STATEMENT OF NEEDS

A. Specific Areas

The intent of this RFP is to provide biosolids marketing evaluation to identify reliable and diversified end uses for the Class A biosolids product (“NutriGreen™”) and to establish a marketing program for the biosolids based on the marketing evaluation. NutriGreen™ is produced at the Atlantic Wastewater Treatment Plant, located at 645 Firefall Drive, Virgina Beach, VA 23454. Agricultural land application of the product within the Cities of Chesapeake and Virginia Beach is managed under a separate contract vehicle. This contract is intended to expand the NutriGreen™ market base beyond the agricultural market.

HRSD’s objective for the Project is to expand the Class A NutriGreen™ market beyond bulk distribution for the purposes of land application by entering into a contract with a third party to provide marketing services. The established marketing program must comply with the applicable regulation (see code of Virginia 9VAC25-32- 570), the Virginia Department of Agriculture and Consumer Services (VDACS) license and registration requirements, and HRSD’s Atlantic STP VPDES Permit VA0081248 (current permit is included as Attachment #2 to this RFP). Alternative outlets must be exempt from nutrient management planning requirements (see 9VAC25-32-570.B.2.).

HRSD is open to utilizing various secondary processes to improve the value and marketability of its THP biosolids product, whether being operated by either in-house staff or by outside contractors, on HRSD Atlantic property or off-site. However, HRSD is sensitive to the volume of truck traffic and odors within the surrounding community. Therefore, the impact of production activity for any new products on truck volume or odors must be considered. HRSD would also consider phasing in secondary processing options for its THP product based on risk, cost, operational requirements, etc.

A. Specific Areas:

1. NutriGreen Production and Marketing

HRSD’s NutriGreenTM is an Exceptional Quality Class A material produced at HRSD’s Atlantic Plant and is currently beneficially reused for agricultural land application. In January 2024, HRSD began full-scale curing of the biosolids cake, producing a material that is 50 – 60 percent dry solids and suitable for direct marketing to consumers as a soil conditioner or fertilizer. Marketing opportunities include, but are not limited to, wholesale distribution to landscapers and lawn and garden centers, and distribution to licensed soil blenders or compost facilities. The market outlets identified must be exempt from Virginia’s nutrient management planning regulations.

HRSD anticipates an annual production of approximately 16 dry tons per day of final dewatered Class A biosolids at a 30 percent total solids content. Curing is expected to provide additional volume reduction, which we are currently estimating to result in an annual production of 4,000-5,000 dry tons at 50 – 60 percent total solids content. Material will be ready to distribute beginning in spring of 2025.

HRSD prefers to maintain an outlet for agricultural land application. 60 percent of the annual solids available for distribution will be reserved for agricultural land application use, managed under a separatecontract vehicle. The remaining 40 percent of the annual solids available for distribution will be available for marketing to the alternate outlets identified as part of this RFP. HRSD can make no guarantees on the volume of NutriGreenTM available for marketing. Operational conditions, maintenance, or other factors may result in less than the estimated volumes. HRSD will make every effort to maximize the volume of NutriGreenTM available for beneficial reuse. As the alternate market outlets identified by the recipient of this contract expand and become more reliable, HRSD will consider adjusting the distribution percentages of material between land application and these alternative market outlets.

2. Market Evaluation

In 2020, HRSD engaged a firm to conduct a Class A Biosolids Market Feasibility Study, included as Attachment #3 in this RFP. This study was completed prior to HRSD’s production of Class A material. Now that this product is available, HRSD requests a market evaluation to identify appropriate price points for the material and identify the customer base. Market outlets within the HRSD service area must be prioritized and all marketing is confined to the state of Virginia.

The market evaluation shall include an outline of potential marketing opportunities and strategies and anticipated unit revenue. The report will provide at least but not limited to the following:

a. Market research findings,

b. Recommendations on delivery and pricing strategies,

c. Professional market demographics,

d. Methods/Concepts to implement for market expansion,

e. Estimated costs of marketing and implementation strategies identified,

f. List of marketing suggestions,

g. List of potential partnerships for outreach,

h. List of any new potential areas of market expansion, and

i. Consideration of options should Per- and Polyfluoroalkyl Substances (PFAS) mitigation be necessary (i.e., blending on-site or with contracted third parties).

As discussed in the opening of Statement of Needs above, HRSD is open to considerations of further processing of materials to better match market needs, should the marketing evaluation identify a need for such and an appropriate anticipated return on investment.

The marketing evaluation shall be presented to key HRSD personnel for input and buy-in on the pursuit of the suggested markets.

3. Marketing Services

Following the completion of the market evaluation, HRSD requests that the Offeror develop and implement

a marketing strategy based on the outcomes of the market evaluation and HRSD feedback. This will require:

a. Registration of the cured product or any other on-site amended products with VDACS utilizing the

NutriGreen™ labeling;

b. Development of any branded marketing materials designed to provide education on the value of sustainably managing biosolids as well as the benefits for soil health and plant growth;

c. Development of a product use information sheet. The product use information sheet provides the end- user with a product quality summary, recommended application rates, and applicable restrictions.

HRSD and/or its contract laboratories will provide any necessary data on solids characteristics to support labeling and use;

d. Management and coordination of distribution of NutriGreen™, including delivery or pick-up, to the identified customer base. Ideally, hauling of NutriGreen™ will be paid by recipients; and

e. Compliance with the tracking and reporting requirements of HRSD’s Atlantic STP VPDES permit, Part IV, Distribution and Marketing.

Note that all branded materials (labeling, marketing materials, product use information sheets, etc., will require HRSD review and approval prior to use.

4. Schedule

HRSD prefers to complete the scope of services outlined above within a year of notice to proceed. If possible, the existing system review and marketing research tasks shall be completed within four (4) months of notice to proceed.

B. Other Services Required

1. The successful Offeror needs to be experienced with marketing, product positioning, tailored messaging, distribution channels as well as regulatory compliance and public perception of Class A Biosolids in the Commonwealth of Virginia. The Offeror shall be required to represent HRSD and its interests as described herein and enter into an agreement with HRSD.