REQUEST FOR PROPOSAL

DEVELOPMENT AND SUPPLY OF

PERFLUORO ELASTOMER

Vikram Sarabhai Space Centre

Indian Space Research Organisation

Thiruvananthapuram - 695022

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Contents

Sl.No Title Page

1. Introduction

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2. Scope of the Development Project

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3. Infrastructure requirement

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4. Quality control

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5. Role of VSSC

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6. Role of Industrial Partners: General Instructions and Terms &

Conditions for Submission of Bids

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7. Technical & Commercial Bid” and the “Price Bid”: Guidelines and

general instructions

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8. Details on Technical & Commercial bid 9

8.1. Understanding of technical requirements 9

8.1.1 Technical approach to scope of work 9

8.1.2 Technical approach to similar tasks in the past 10

8.2. Management plan and approach 11

8.3. Quality control and Management 11

8.4. Industrial safety aspects 11

8.5. Commercial part 12

9. Details of Price bid 14

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1. Introduction

Fluoropolymers (FP) are well known for their excellent chemical inertness and thermal

properties. Poly tetrafluoroethylene (PTFE) and poly vinylidene fluoride (PVDF) are crystalline

thermoplastic fluoropolymers. They are manufactured from gaseous monomers by emulsion or

solution polymerization route. Fluoroelastomers (FKM) constitute another category of FP which

exhibit rubbery properties useful for O-ring or sealant applications in aerospace industry (e.g.

Vitons). The third variant viz:perfluoroelastomer (FFKM) which is resistant to strong acid or

basic media as well as several chemicals is the most important one. They are generally

manufactured by copolymerizing tetrafluroethylne (TFE, gas), perfluoro alkyl vinyl ether (PAVE,

gas) and astrategically incorporated,cross-linkable,perfluoro monomer (cure site monomer,

CSM). FFKMs are superior to butyl, nitrile or FKM class of rubbers by providing exceptionally

high chemical resistance and compression set properties. As it is a terpolymer, several versions

of FFKMs are possible by altering the composition of feed monomers.They are originally

developed by DuPont (Kalrez) and later by Trelleborg (Isolast). Both Kalrez and Isolast are highly

resistant to liquid propellants (N2O4 and UH25 media). These outstanding features of FFKMs

furnished a vital place for them in our launch vehicles as O-rings for liquid/cryo engines. VSSC

(ISRO) requires about 80-100 kg of FFKM per annum for the manufacture of O-rings and

sealants.

2. Scope of development Project

The scope of the developmental work is given below:

I. The activity has to progress in three phases involving (1) realization or procurement of the

monomers (2) optimization of polymerization conditions and (3) carrying out compounding

trials to arrive at the optimum composition for O- ring processing.

II. First phase comes under party’s responsibility, second phase will be combined

responsibility of VSSC and the Party and third phase is solely the responsibility of VSSC.

Role of VSSC and the party are detailed clearly in the forthcoming Sections.

III. The intricacies in each step may be resolved by the concerted effort of the VSSC team and

experts in the field.

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IV. It is broadly understood that, the polymer used for the manufacture of FFKM O-rings is a

terpolymer of TFE (Tetrafluoroethylene), PAVE (Perfluoro alkyl vinyl ether) and a cross

linking site monomer (CSM) having either halogen or CN group in its structure.

V. The party should have minimum 10 yearsof experience in Fluorine Chemistry and should

be well experienced to handle the hazardous gaseous monomers. It is essential to have the

expertise in handling all the monomers including TFE and also to polymerize them.

Moreover, they should be equipped with the necessary infrastructure at pilot plant

level/industrial scale.

VI. Party should be ready to arrange all the ‘most probable monomers’ [4-5types] by

synthesizing or by importing, [Party should specify whether they are importing or

synthesizing] for initial polymerization and subsequent compounding trials. The

monomers shall be imported in required quantities to suffice trials to realize 1 kg of the

polymer, for characterization and compounding. The minimum order quantity, procured by

the party shall be funded by VSSC against actuals, on production of the details. Customs

duty exemption shall be provided by VSSC, if required, for the materials imported

exclusively for this developmental activity, as applicable.

VII. The experiments shall be carried out at industry, by their team in association with VSSC

team. The composition of the feed, polymerization conditions, initiator, isolation of the

product, etc. will be jointly decided by the teams.

VIII. Each polymerization experiment shall be completely documented and provided to VSSC.

The inputs required by VSSC shall be provided in the form of a log sheet.

IX. Each batch of the polymer will be completely characterized by VSSC and compounding

trials for O-rings will be carried outin VSSC by VSSC team.

X. Once the composition is optimized, the production of the polymer may be carried out at a

level jointly decided by the teams by the standardized process and 80-100kg will be

thetotal annual requirement by ISRO.

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XI. Suitability of the polymer and its adequacy for the intended uses including O-rings,

diaphragms etc. will be continuously assessed by VSSC and necessary modifications shall

be suggested from time to time.

XII. A full-fledged process document should be submitted by the party to VSSC, after

optmisation of the composition and process.

3. Infrastructure requirements

i) The party should have in-house, in -line access to TFE monomer.

ii) The party should ensure uninterrupted power supply during entire processing of

polymer.

iii) An autoclave (pressure reactor) is required with all safety features for the

terpolymerization using monomer gases. The pressure withstanding capacity of

the autoclave should be sufficiently higher than the original pressure build-up

expected during polymerizations.

iv) The party should possess monomer storage/transport/handling/polymer

processing facilitiesat present and alsopilot plant level production capability

v) The party should have adequate building/sto accommodate the facilities mentioned

above, considering the mandatory safety distances and practices.

vi) VSSC will not be responsible for any accident/mishaps or safety lapses at the

Party’s site during these experiments.

4. Quality control

The party should be ISO certified, for more than 5 years with good quality practices.

A strict quality control shall be implemented at all stages of the developmental process,

starting from Procurement and Storage of raw materials to supply of polymer [Perfluro

Elastomer-raw rubber] to VSSC. A detailed quality enforcement plan shall be prepared,

which shall be reviewed and concurred by VSSC (ISRO). The quality control parameters for

different stages include:

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i) Raw material testing: Purity and chemical structure of the raw material shall be

assessed in terms of the test certificates and reports from the manufacturer. If

required, Party has to arrange for the characterization of raw materials, either at

their facility or with a third agency appropriately.

ii) In-process check: All process parameters shall be logged in real-time (time,

temperature, pressure, addition of monomers in intervals etc.).

iii) Final raw-rubber testing: Final raw rubber will be thoroughly analyzed by VSSC

for the chemical composition, cure characteristics and morphological features.

5. Role of VSSC

i) Sharing the available knowledge about monomers, composition and process

ii) Review of available and/ or new infra-structure set-up and design of

polymerization conditions.

iii) Participation in the entire process of developmental trials.

iv) Evaluation of the raw rubber and clearance during the developmental trials.

v) Compounding trials using as-synthesized rubber and evaluation of properties.

vi) Conducting technical and safety audit of the process facility to ensure

conformity to the approved process.

vii) Modification of the process/technology (if required) based on mutual

agreement.

viii) Quality audit of the products once the regular supply starts.

6. Role of Industrial Partners: General Instructions and Terms & Conditions for Submission of Bids:

After the release of RFP, the parties will be invited to VSSC (ISRO) for a technical

presentation regarding their “plan of action” with respect to the development of raw

rubber and subsequent regular supply (spec. of rubber/resin will be defined by

VSSC,after evaluation of the resin and the corresponding batches of compound

processed in VSSC)

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I. The parties shall clarify the doubts (Technical & Commercial), if any, which

may arise during the presentation.

II. The party should set-up all the facilities for all the stages of production of

“Perfluoro elastomer resin” as specified in section 3, within the territory of

India.

III. Additional investments/requirements with respect to this development should

be clearly mentioned

IV. After the completion of the discussion including experimental details, the

parties will be given 30 days’ time to submit their 2 part bids.

V. Bids shall be submitted in two parts namely: Technical &commercial bid and

Price bid

VI. Both the bids have to be submitted in hardcopy, in separate sealed covers

within the stipulated time limit after completion of the discussion. The bids

received in one cover for both Technical & Commercial and the Price bid will

not be considered.

7. “Technical & Commercial Bid” and “Price Bid”: Guidelines and general instructions

a. Technical & Commercial and Price Bids have to be submitted separately in hard

copy within the stipulated time limit.

b. The Technical & Commercial bid should indicate whether all equipments are

available with the party and if not, the date of commissioning of such equipment

and the date of readiness of the facility to take up the production.

c. If the Party includes data in their proposals that they do not want to be

disclosed to others for any purpose, or used by VSSC (ISRO) except for

evaluation purposes, it shall be marked on the title page with such a legend.

d. The party shall be responsible for all regulatory record keeping requirements

associated with the use of licenses and license exemptions/exceptions.

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e. VSSC (ISRO) team shall visit the party’s site (if deemed necessary) to assess the

technical capabilities as given in their bid before making any final decision.

f. The bids should also provide the following separately. After pre-production

trials for Perfluoro elastomer resin are completed, three consecutive

qualification batches of Perfluoro elastomer resin have to be conducted in the

presence of VSSC (ISRO) team and the product should meet all the

specifications laid down in the document. The plant will be declared operational

only after the successful completion of the evaluation trials.

g. The party has to take initiative to dispose of the unqualified/rejected batches

which may arise during commissioning trials.

h. VSSC (ISRO) will reject proposals which are incomplete or found unsuitable.

i. The party’s initial proposal should contain their best terms and conditions from

the technical and commercial point of view.

j. Based on the project demand, our annual requirement may vary and the party

shall not use any penalty clause based on our fluctuating requirement.

However, a minimum guaranteed quantity of 20kg of perfluoro elastomer resin

will be purchased by VSSC (ISRO) in every year, for an initial period of 5 years.

k. VSSC (ISRO) reserves the right to award contract to more than one party or split

the quantity without mentioning any specific reasons.

l. VSSC (ISRO) reserves the right to short close the tendering process at any stage

without giving the reasons.

m. The party is wholly responsible for developing the technology and producing

the product “Perfluoro elastomer resin” and supply to VSSC (ISRO), strictly as

per VSSC (ISRO) specifications.

n. The formulation and details of the process shall be kept confidential and party

shall not change the standardized formulation and process details or divulge

any information with regard to these to anyone, at any point of time. Party has

to sign a non disclosure agreement in this respect.

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o. The developed perfluoro elastomer or any of its formulation in any form should

not be supplied to any other agency without the prior knowledge and approval

of VSSC. Approval shall be subject to payment of royalty to VSSC, decided by

mutual agreement between VSSC and the party via a separate Technology

Transfer Agreement.

p. Intellectual Property originating from the work shall be filed jointly by ISRO

and the party.

q. A Joint Project Management Committee (JPMC) shall be constituted to monitor,

review and sort out any issues that may be encountered during the progress of

the developmental activity at every stage.

r. Outsourcing of any stage of the production process of “Perfluoroelastomer

resin” is not permitted.

s. VSSC (ISRO) reserves the right to short-close the RFP without assigning any

reasons.

t. The details of this RFP shall be kept confidential and shall not be shared with

anyone, at any point of time. Party has to sign a non disclosure agreement in

this respect.

8. Details on Technical & Commercial bid

The technical & commercial bid shall bring out the following aspects:

8.1. Understanding of Technical Requirements

The party shall demonstrate a thorough understanding of the requirements of

the RFP, providing detailed technical approach for each element in the

Statement of Work. This technical response shall consist of the following:

8.1.1. Technical approach to scope of work:

a. The party shall indicate the process flow including procurement and storage

of raw materials and process consumables, acceptance testing, operations,

quality control and material handling. The party shall provide the following

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information for each element in order to demonstrate their understanding of

the work and ability to cover and perform all aspects of the technology area

of perfluoro elastomers resin, as outlined in the Scope of Work.

b. The subtasks/operations shall be detailed for the process from raw material

to final rubber (polymer) along with the estimated man-days or man-hours

taken for the computation of processing cost.

c. Technical approaches for accomplishing the requirements presented,

including basis for approaches used.

d. Identify key in-house workforce capabilities available, as well as a

description of workforce to be recruited.

e. Unique capabilities and facilities available with the party that would have

added advantage.

f. Facilities to be set up including the requirement of land and building,

realization schedules for new facilities and other significant milestones

necessary in completely defining the technical approach for achieving the

objectives and requirements set forth in the Scope of Work shall be provided.

8.1.2. Technical approach to similar tasks in the past:

a. The Party shall provide the following information on all similar tasks

executed in the past to prove their ability to successfully complete the

current task.

b. The party shall elaborate any previous experience of producing “Perfluoro

elastomer resin” or similar products.

c. Any previous experience of the party in the production of “Perfluoro

elastomer resin” in appreciable quantities (1Kg or above) will be given due

weightage

d. Planned Schedule with milestones of deliverables of similar works and

comparison with actual schedules.

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e. Workforce, skill mix, and skill level requirements used to complete similar

task/tasks.

8.2. Management Plan and Approach:

The Party shall provide a description of their methods and techniques for

initiating, planning, monitoring and controlling the technical work and

schedules for the program.

8.3. Quality Control and Management:

a. The party should provide proof to the effect that their product development

and production are exactly as per ISO guidelines and records are maintained

as per ISO norms. The party should have a proven track record for ISO

9001:2008 and ISO 14001:2004 so that a full-fledged quality and

environmental system is in place.

b. Party should clearly state the year and month of ISO certification.

c. The proposal shall specify the Quality management structure of the party

and planned approach for quality control and management.

d. Quality Control should be managed by qualified personnel with necessary

equipment to certify that production batches are in conformity with the

product specifications.

e. Quality Control team in terms of “technical, analytical and administrative”

man-power shall be mentioned.

f. The product development and production should be exactly as per ISO

guidelines and records should be maintained as per ISO norms.

8.4. Industrial Safety Aspects:

a. The proposal shall specify the Industrial Safety aspects practiced by the

company, safety standards, safety systems available and experience in

handling toxic, carcinogenic and explosive materials.

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b. The proposal shall also include specific safety measures available in place

for handling the process described in the RFP. If such safety measures are

not available a detailed plan for implementing the same should be included

in the proposal.

8.5. Commercial part:

The commercial part shall be prepared under the following headings:

a. Profile of the company

b. Nature of ownership

c. Products, similar products

d. Sales turnover

e. Number of employees in different categories

f. Details of top management

g. List of key personnel and their expertise, etc.

h. Plant Details like location, plant layout for the production of “Perfluoro

elastomer resin”

i. Details of availability of power

j. Equipment and facilities already available

k. Equipment and facilities planned to be procured/added

l. Copy of Annual turnover statement/ Balance sheet for the last three years

m. Copy of IT returns filed for the last three years

n. Applicability and rate of GST, Packing and Forwarding Charges. Bid shall

also mention the GST Number, Basis of price like, Ex-works, Door Delivery,

FOR- Destination etc. VSSC is exempted from payment of Excise Duty vide

Notification No.10/97 and Customs Duty vide notification 12/2012 dt.

17/3/2012 and necessary Duty Exemption Certificate will be submitted by

VSSC, if required.

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o. Warranty details, if any and delivery schedule.

p. Payment Terms: Our normal payment terms are 100% within 30 days of

completion of the batch and certification by us.Payment for each batch

during the development phase shall be on ‘pro rata’ basis

q. The Technical and commercial bid shall include “a blank price bid format”

that states the factors which are considered for pricing of the product

without the price. Price shall be given only in the price bid. The basis of

pricing is very important to evaluate the reasonableness of the pricing.

r. Preliminary developmental trials at party’s site (batch size of 1 kg mutually

agreed by party and VSSC)

s. Pre-production trials by the party at the party’s site (Batch size of 1 kg)

t. Scale-up by the party at the party’s site (approximately 5 kg, depending on

the repeatability of process and optimization of process parameters)

u. Qualification Batches (Batch size as optimized and scaled up by the party

during the pre-production trials): Minimum 3 consecutive qualification

batches are mandatory.

Note: VSSC/ISRO shall not be responsible for the experiments conducted

(if any) beyond the specified experiments.

v. Regular Supply (Batch size- as optimized and scaled up by the party (jointly

decided by VSSC and the party) during the Qualification)

w. Each of the above shall be prepared under the following sub-headings:

Preliminary plan of action regarding the realization of the

facility – Details to be given with milestone targets and time

schedule

Equipment and facilities planned to be procured/added

Raw materials

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Utilities

Any other cost

9. Details of Price bid

All cost details should be indicated in the Price Bid only

a. The number of developmental experiments to be conducted depends on

achieving the resin/rubber properties (which in turn, shall meet the final

product level specifications of VSSC). Party should mention the cost for trial

experiments (cost/experiment) in the price bid.

b. Cost of initial trials involving the recommended formulation of monomers

and experimental conditions shall be borne by VSSC. Cost of such batches

may be estimated on the basis of cost of raw materials, manpower and plant

facility utilization including power and other amenities.

c. Investments towards facility establishment will not be funded by VSSC.

The Price bid shall be prepared under the following headings:

a. Cost of Preliminary developmental trials at party’s site (Batch size of 1 kg

mutually agreed by VSSC and the party)

b. Cost of Pre-production trials at party’s site (Batch size of 1 kg, mutually

agreed by VSSC and the party)

c. Cost of Scale-up at party’s site (Batch size of approximately 5 kg mutually

agreed by VSSC and the party)

d. Cost of Qualification Batches (Batch size as optimized and scaled up by the

party during the pre-production trials): Minimum 3 consecutive qualification

batches are mandatory.

e. Cost of Regular Supply (Batch size as optimized and scaled up by the party

during the Qualification, (Batch size mutually agreed by VSSC and the party)

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f. Technical & Commercial and Price Bids have to be submitted separately in

hard copy within the stipulated time limit.

g. The Technical & Commercial bid should indicate whether all equipments are

available with the party and if not, the date of commissioning of such

equipment and the date of readiness of the facility to take up the production.

h. Each of the above shall be prepared under the following sub-headings

Cost of Raw material

Cost of utilities

Any other costs

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