Procedure for Initiating a Development Project

Inventors, entrepreneurs, commercial organizations, and universities are encouraged to meet with ICCI staff to discuss concepts and research projects that may have potential to help the coal industry. This section addresses the following topics as they apply to initiating a development project.

  Procedures for identification and initiation of potential development projects.
  Evaluation criteria for development projects.
  Review of development proposals.
  Approval of recommended projects.
  Download Development Application.

  Identifying and Initiating Potential Development Projects

Potential development projects are identified and initiated by:

• Unsolicited proposals. 
  Inventors, entrepreneurs, commercial organizations, and universities are encouraged to meet with ICCI staff to discuss concepts that may have potential to help the coal industry. If internal and, if necessary, external reviews indicate the concept appears sound and has the potential to significantly assist the Illinois coal industry, the ICCI staff will assist the group in the formulation of a development plan that can be the basis for a formal proposal. This proposal is then reviewed and is either rejected by the ICCI or recommended for OCD/DCEO approval. The formal proposal may be preceded by a brief pre-proposal to ensure understanding between the ICCI and the proposer.
  
  
• Targeted procurements. 
  A targeted procurement is one in which the ICCI identifies a technology or a concept that has the potential to help the coal industry but is not being addressed. The ICCI will then do further internal analysis to establish feasibility and to identify organizations with the expertise and capabilities to conduct the project. The ICCI will meet with one or more of these organizations to discuss feasibility, various approaches to the problem, the scope of work required, and preliminary cost projections. If these industry discussions indicate the concept makes sense, a pre-proposal will be requested from one or more of the qualified organizations. After review of the pre-proposal, a formal proposal(s) will be requested. If this proposal is favorably reviewed, it is recommended for funding and submitted to the OCD/DCEO for review.
  
  
• Statement of Interest (SOI). 
  The SOI approach was used to initiate the Development Program. It is similar to an RFP (Request for Proposal) but rather than submitting a formal proposal, the responder submits an SOI which does not contain all the detail required in a formal proposal and is thereby cheaper to prepare. Another difference between the SOI and a formal proposal is that the SOI allows communications between the ICCI and the prospective proposer prior to preparation of a formal proposal. These communications allow both the ICCI and the responder to operate on the same wave length and determine whether a formal proposal should be submitted. The scope of the SOI can be as narrow or broad as desired.
  
  
• The ICCI Research Program. 
  Research projects, whose objective is a product or process, are monitored with the help of the Research Managers to identify possible candidates for further development leading to ultimate commercialization. Participation in research proposal review as well as tracking progress on individual projects assist in the efficient transition from research to development. To effect the transition from research to development requires the submission of a statement of work and cost estimate. In almost all cases, the transition from research to development requires the support of an additional organization(s) to provide the capability to scale-up the process or product.
  
  
• Participation as a Partner in DOE/EPRI/Industrial Projects. 
  The ICCI participates in projects supported by the U.S. DOE, EPRI, or other industrial groups as well as private industry that the ICCI evaluates as being important to protecting or expanding the Illinois coal market. ICCI participation insures that Illinois coal will be a major feedstock for the development effort which provides a "leg-up" for Illinois in the subsequent demonstration effort. In addition, the ICCI can help focus the direction of the project and have continuing access to project data and information. Typically, the ICCI will have input to the proposal and prepare a conditional letter of intent to participate for OCD/DCEO approval.

  Evaluation Criteria for Development Projects

Evaluation criteria and criteria weighting factors are determined by the particular procurement. For example, a feasibility study project will have different evaluation criteria than a project that is heavily involved with experimental work. In general, the following criteria are applied, as dictated by the particular project, in the evaluation process.

  Technical.
The primary technical considerations include:

• Project objectives and likelihood of their being achieved.
• Potential technical advantages of the proposed technology over competitive technologies.
• Potential cost advantages of the proposed technology over competing technologies.
• Availability of facilities.
• System complexity and perceived technical barriers to commercialization.
  

  Organizational and Individual Capabilities. 
The assembly of a qualified team, the experience of the organizations on the team, and of the individuals assigned to the project are critically important evaluation criteria.

  Market Development.  
Top priority is given to projects that have the potential for application in the power industry because it is by far the largest user of coal. However, other markets especially those that can develop new higher value uses for coal are also given high priority. To establish a market requires that the commercialization of the technology can be financed. This requires the existence of a market as well as attractive economics. Therefore, these issues are addressed as well as is possible during the review process. In addition, at least one of the project participants should have experience selling in the target market.

  Budget.  
The 3 important budget criteria include (1) perceived value of the project as far as increasing coal utilization (2) the total cost to the ICCI and (3) the cost share from other participants in the project.

  Business Considerations.  
The primary considerations under this criteria have to do with maximizing the project's potential to be commercialized. These considerations include:

• A well thought out business plan that shows how the technology is to be commercialized.
• Potential site or sites for demonstration.
• A partner who understands project financing
• Intellectual property, important in justifying financing risks by private partners.

  Project Location.  
No firm rules exist regarding out-of-state projects. However, all things being equal, an Illinois project would be favored. Thus, while location is a consideration, it is not nearly as important as the potential value of the project to the Illinois coal industry.

  Review of Development Proposals

Development proposals are considerably different than Research Program proposals with respect to the review process. For example, the submission of a development proposal is almost always preceded by a pre-proposal and communications between the ICCI and the prospective proposer to discuss all aspects of the proposed work. Another difference between research and development proposals is that typically the development proposal is submitted by an organization with special commercial technical expertise in the area proposed. Research proposals are, on the other hand, typically submitted by universities with little knowledge of commercial applications. Thus, the review process for development projects will usually be focused on criteria other than the technology. In other words, satisfying the technical criteria is an absolutely necessary but not sufficient condition to proceed past the discussion stage.

Proposals are initially reviewed in-house by ICCI staff. If special expertise is required, outside experts are consulted on an ad-hoc basis. In some cases, the proposer is given the responsibility of seeking the outside support necessary prior to being asked to prepare a proposal.

  Approval of Recommended Proposals

Each development proposal recommended for funding by the ICCI is submitted to the OCD/DCEO, through the OCD, who reviews it and decides whether or not to approve funding.

After OCD/DCEO approval, a request is made to the SIUC Purchasing Department to prepare the appropriate contract or purchase order under which to initiate the project.

  Download Development Application