MEMORANDUM Date: November 22, 1994 To: Senator Dole From: Alec Vachon Re: Attached Letter from Dan Taylor * Dan Taylor asks about the availability of funds for Center Industries Corporation (CIC) and any surplus equipment. CIC, a subsidiary of Cerebral Palsy Research Foundation of Kansas (CPRF), is essentially a highly sophisticated machine shop and manufacturing facility and employs 75% disabled. However, CIC also views itself as a laboratory for making machines usable by people with disabilities. * I was somewhat surprised by Taylor's letter because I am in regular contact with Jack Jonas and Pat Terrick at CPRF, and although we have discussed CIC a number of times, they have not raised these requests. As I understand the situation currently: --There is no federal program that would provide an ongoing operating subsidy to an operation like CIC. However, CIC might benefit from a small business preference in Federal contracts, except it is run as a nonprofit. (This was apparently a condition for CIC to receive an exclusive contract to manufacture Kansas license plates.) BTW, until about 2 years ago when the authorization expired, Federal law did allow nonprofits a small business preference --but even then CIC did not use it. --Regarding surplus equipment, CIC already receives surplus Federal equipment and is quite knowledgeable about the acquisition process .. However, the kind of equipment CIC apparently wants is not the kind ordinarily disposed of by Federal government. * I have a call into Jack Jonas to check these facts (Jack was out today because of a death in the family). After I talk with Jack, I will give Dan Taylor a call to follow up and perhaps devise a strategy. I will keep you posted. Daniel J. Taylor 9323 E. 37th St. North Wichita, KS 67226 Phone 316/634·3333 FAX 316-634­3340 November 17, 1994 The Honorable Bob Dole United States Senate 141 Hart Senate Office Building Washington, D.C. 20510 (End of Letterhead) Dear Bob: It was a pleasure to see you again at Charles and Liz Koch's home. Congratulations on a terrific election. You've done a great job and Kansas is proud ofyou. Because of your long-standing commitment to support activities which promote employment for people with disabilities, I want to provide you with a brief background on the $25 Million Capital campaign Dan Camey and I are Co-Chairing for the Cerebral Palsy Research Foundation of Kansas (CPRF). Funds are being sought from both public and private sources to complete the following priorities: 1) Construct a new 14,000 square foot facility to provide additional space for CPRF's Human and Technical Support Services Divisions and add 1,833 square feet to The Daniel M. Camey Rehabilitation Engineering Center. 2) Renovate The Timbers Complex which includes an independent living community of one hundred (100) apartments and a support services building. 3) Acquire major equipment for CPRF's manufacturing facility, Center Industries Corporation, to enhance its manufacturing capabilities and increase employment opportunities for persons who are physically disabled. 4) Provide initial capital for new programs and increase funding for under-funded services. 5) Establish an endowment to ensure that the quality of CPRF's services to people with disabilities will continue at the current high standard regardless of changes in funding patterns. We have been most encouraged by the responses to our request for support beginning with a $1.5 Million challenge grant from The J.E. and L.E. Mabee Foundation in Tulsa, Oklahoma and including our most recent grant from The Boeing Company for $245,000. Through today's date, we have commitments totaling over $19 Million. We also have several grant requests pending including one to the Kresge Foundation in Troy, Michigan. Our mutual friend, Charles Koch, wrote a particularly moving letter of support for CPRF's Kresge request which I am pleased to share with you. As Charles expresses so well in his letter, the hallmark of the Cerebral Palsy Research Foundation of Kansas is its unwavering commitment to provide dignified and meaningful employment opportunities for persons with physical disabilities. While there are numerous sheltered work centers throughout the nation that provide employment for persons who are mentally as well as physically disabled, this is not the population employed by CIC. CIC has the mission ofproviding employment for persons with disabilities who have normal, and in many instances, above normal intelligence. In this respect, CIC is unique in the nation. The customer base of CIC is comprised of such well known corporations as the Boeing Company, Raytheon Aircraft, Cessna Aircraft, Koch Industries, The Coleman Company, Learjet, John Deere, Rubbermaid, and Southwestern Bell. Current manufacturing contracts include: (a) the titanium engine mount for the Cessna Citation, (b) window frames for the Boeing 777 and 737 jet, and (c) critical airframe component parts for the Beech Jayhawker Trainer. Two areas within CIC have been identified where the acquisition of new major equipment will enhance its ability to compete for more technical contracts of longer duration. On a separate attachment, I am providing a more complete description of the specific equipment we want to acquire for CIC. Bob, at your earliest convenience, Dan and I would like to meet with you either there in Washington or here in Wichita. We are interested in receiving guidance from you regarding the funding that may be available for a manufacturing facility like Center Industries Corporation where 75% of the production work force are people with disabilities. Or, there may be a situation where there is surplus equipment that could be directed to a program like the one we have at CIC. Again, it was good seeing you. I look forward to visiting with you soon about our shared interest in helping Kansans with disabilities experience the dignity of living as independently as possible which... Sincerely, Daniel J. Taylor DJT/mh Handwritten Notes on Page: 11/3/94 3:30 pm - Dan Taylor 12/5/94 - WH VM 12/6/94 Coch Industries Pres - Chuck Maley Owned Subsidiary of CPRF Separate but some... cc: Mr. Charles Koch Mr. Daniel M. Camey Mr. Jack Jonas Major Equipment for Center Industries Corporation (End of Headline) Two areas within Center Industries Corporation (CIC) have been identified where the acquisition of new major equipment will enhance its ability to compete for more technical contracts of longer duration. 1. The first is the Computer Numerical Control (CNC) area. CNC machines are used to produce precision parts for the aerospace industry. Currently, CNC contract machining accounts for 25% of CIC's sales. To improve its production rate and increase sales, CIC must replace its older and slower CNC machines with newer ones that have high speed capabilities of up to 15,000 RPM and can integrate a five axes capability into their systems for more complex configurations. A further enhancement for the CNC area involves augmenting and upgrading the Computer Aid Design/Computer Aid Manufacturing (CAD/CAM) systems and the Coordinate Measuring Machine (CMM) used for quality assurance. CNC machines are easily modified to make them accessible for people who use wheelchairs. New Equipment Required: CNC Five-Axis Machine: $808,130 CMM and Systems Options: $257,815 CAD/CAM: $142,213 Total: $1,208,158 2. Fabrication and Assembly is the second area targeted for improvement. This area accounts for 35% of CIC's sales. This area focuses on the manufacture of a wide variety of high speed blanking and complex fabricating of sheet metal products for the aerospace, farm equipment, and recreational industries. Most of the antiquated pieces of equipment were donated over the years to help diversify the capability of CIC. The machines were manufactured anywhere from the 1930's to the 1970's and no longer hold the tight tolerances expected in today's quality conscience world. New Equipment Required: High Speed Press with decoiler, straightener, and feeder: $225,000 Programmable Brake Press: $100,000 Total: $325,000 KOCH INDUSTRIES INC Charles G. Koch Chairman and Chief Executive Officer (End of Letterhead) April 26, 1994 Mr. John E. Marshall, III President The Kresge Foundation 3215 W. Big Beaver Road P.0. Box 3151 Troy, Michigan 48007-3151 Dear Mr. Marshall: I am pleased to write this letter in support of the grant application from the Cerebral Palsy Research Foundation of Kansas (CPRF) to The Kresge Foundation. Many of the programs and services provided by CPRF for people with disabilities are without peer in the United States. One of CPRF's innovative programs is its manufa~turing facility, Center Industries Corporation (CIC). Patterned after a similar successful program in Sidney, Australia., CIC incorporates rehabilitation engineering to develop adaptive devices for its employees with physical disabilities. CIC employees receive competitive wages and a benefit package that includes health and life insurance as well as a pension plan. This is especially critical for employees with physical disabilities because they forego much of the government funding they could receive if they chose to sit at home rather than work, earn wages and pay taxes. Over the years, Koch Industries has made several grants to the rehabilitation engineering department at CIC. In addition to grant support, we contract with Center Industries to manufacture the pipe used to control the reaction ofacids in storage tanks and the aluminum check fixtures for our pipelines. CPRF's Gateway Program is recognized nationwide as a forerunner in providing innovative, community-based vocational rehabilitation programs to survivors of traumatic brain injury. Among our employees at Koch Industries is a young woman, Shannon Hilbert, who successfully returned to employment following a traumatic brain injury sustained in an automobile accident in I985. Now in her second year in accounting for our Koch Materials subsidiary, she was named the 1993 "National Graduate ofthe Year" by Goodwill Industries of America. While in Washington D.C. to receive this award, she was invited to the Oval Office to meet with President Clinton. Shannon credits the professional support and training she received through CPRF's Gateway Program for helping her experience the daily dignity of working and achieve national recognition. Mr. John E. Marshall, III Page 2 April 26, 1994 Koch Industries supports the Cerebral Palsy Research Foundation of Kansas because of its commitment to providing people with disabilities the opportunity to live with dignity as independent human beings. Thank you for considering CPRF's grant application: Sincerely, Charles Koch CGK:ks