Before starting to analyze and create contracts, find out how the campus operates all existing garbage and recycling/composting programs. There is no cookie cutter strategy for waste management as all campuses have different challenges that ultimately determine how these operations are managed. Some campuses contract everything and others keep all of the work in-house. Hybrid programs where the garbage is contracted out and the recycling is done in house can also be successful.

If the campus collects garbage and recycling using in-house labor and vehicles, assess the process's cost effectiveness. Determine the cost per unit of existing practices and compare that to local contractors' costs per unit. If the campus contracts garbage and recycling services, make sure that the services outlined in the contract are being fulfilled.

It is feasible to change an entire system from in-house to contracting or vice versa. If the campus is considering a change to a system that has been in place for a long time, create a comprehensive plan to make this transition. Remember, there may be resistance to change from the administration and/or employees.

Generally, a contract is written for a good or service when the price exceeds a specified limit. The limit will be different for each state or private entity. As with any new program implementation, research how other campuses are managing garbage and recycling. Evaluate the campus variables and maintain a broad perspective in creating contracts. There are many components that are essential to the efficacy of the recycling/waste reduction effort that are not self evident in creating these contracts.

Do not to sell the campus short on any of these issues. Contracts, also called solicitations, usually go out for bid every three to five years. Start making changes to a contract a year in advance. Within government run entities, there are rules to comply with that can slow down the contract process. Think ahead and allow for plenty of time to finalize the contract. Read the campus procurement code and speak with procurement officers regarding any additional questions to determine the procedures for changing a contract and bidding.

Contracts generally follow a pattern. There is a cover sheet that includes information such as the school's name, address, and phone number, a description of the solicitation and time period, a due date, and a bid opening date. The next several pages are called the boilerplate and contain information that is standard for all contracts. The requirements are commonly known as the specifications. Certain sections of the specifications can be standardized, so if a contract is being created from scratch, request copies of several contracts that have already been bid and awarded by campus procurement officers.

There are several methods of procurement. Here is how many state colleges manage contracts:  

1) Competitive Sealed Bidding is a written or published solicitation issued by an authorized procurement officer for bids to contract for the procurement or disposal of stated supplies, services, or construction. This generally results in a contract award to the lowest responsive bidder that meets all of the contract specifications.

2) Request for Proposal (RFP) is a written or published solicitation issued by an authorized procurement officer for proposals to provide supplies or services. The contract award is made on the basis of evaluation factors (which must be stated in the RFP) that result in a contract that will be most advantageous to the school.

3) Competitive Best Value Bidding allows factors other than price to be considered in the award determination for specific goods or services based on predetermined criteria identified by the school.

4) Competitive On-line Bidding is essentially the same as Competitive Sealed Bidding (above), but the process is accomplished online. This could be very effective for a recycling contract since it encourages paperless communication from the start.      

Imagine what the process for garbage and recycling collection will look like from beginning to end and make a flow chart. Be creative with contract specifications to establish incentives for waste reduction and recovery. The following information lists came from the power point presentation, “ABCs of Trash Contracts,” written by Laura Pergolizzi, Recycling Coordinator for the University of South Carolina in 2003. Minor changes have been made to adhere to this book's format.

Prioritize Campus Needs

• Reliability of service
• Cost of service
• Flexibility of service
• Aesthetics of dumpsters and collection sites
• Weight or volumes of trash generated
• Length of contract                  

Think About Containers

• Ask vendors to go over all options for containers.
• Lease, own, or lease to own?
• Who does maintenance?
• Who sanitizes the containers and how often?
• Do you want to change the size, style, or color of dumpsters or recycling bins?
• Does pick-up frequency need to be altered?
• Do site/bin signs need updating?
• Ask for pressure gauges on compacting dumpsters to know when they are full.
• Make sure that all equipment meets OSHA safety standards.

Decide What the Program Wants from the Vendor

• A designated liaison?
• Weight or volumes reported on a monthly basis?
• A daily, weekly, or monthly log from the vendor that documents problems?
• A weekly or monthly meeting with a designated vendor liaison?
• A monthly invoice formatted to program needs?
• Two-way communication with the driver?
• Designated time and days of service and/or on-call service?
• Designated response time for on-call or emergency pickups? (Confirmation #)
• Cleanup of dumpster sites?
• Assistance with annual or semi-annual waste audits?
• Call campus police to tow cars that block containers?
• Dedicated truck or route?
• Name of recycling facility, landfill, transfer station, MRF, or incinerator used for contract?
• Pay a flat fee, fee per pickup per size, fee per ton or volume?
• Pay the landfill or incinerator fee to the landfill or the contractor?
• Revenue from the sale of recyclable

Have a Pre-Bid Meeting

• Review contract expectations with bidders
• Require bidders fill out a questionnaire stating how the requirements of the bid would be met
• Take bidders on a tour of campus facilities

Provide an Out

• If contractor fails to meet contract needs
• If the service needs to be changed

Create Operating Seasons

• Academic (38 weeks)
• Winter (2 weeks)
• Summer (12 weeks)              

Performance Guarantee

• If a vendor meets certain requirements, consider creating a bonus for exceeding the expectations of the contract.
• If vendor fails to meet the minimum requirements, one option is to establish an agreement that the vendor will issue a credit to the University.

Provide the contractors a list of internal contract managers and all contact information including the address to which invoices need to be sent. The final section of a contract is a price sheet. It should be a list of all expenses including service and equipment and prices. For example:

The total of the yearly rates would be the price of the contract. A more complicated price sheet would request prices for all services present and future such as dumpsters the program currently has and dumpsters that may be needed in the future due to plans for more development on campus, changes in building use, or changes in campus population demographics. Create a price sheet asking for the price of all dumpsters at all frequencies. It is important to know how prices will be affected by future events.

Keep in mind that even with fixed costs for a service, total monthly costs may be variable depending on how much material is generated and, therefore, how much service is required. For example, a 30 yard compactor may have a fixed cost of $100 a month for the lease rate, steam cleaning may be fixed cost per cleaning and, similarly, haul rates and landfill disposal rates may be fixed per load. Therefore, the total cost will vary monthly depending on how many times the dumpster is emptied that month.

One way to handle this would be to ask to be billed an average monthly price. Another way to handle this is to have two price sheets. The first price sheet will be the basic sheet asking for monthly and yearly rates. The second sheet will have the detail for the monthly break down costs. Make sure to differentiate between recycling containers and garbage dumpsters in the specifications.

Finally, the procurement officer may request a bidders list. Look in the phone book or online to find available bidders. Three is typically the minimum number required by procurement officers for a bidders list. It is ultimately the responsibility of the bidder to find the contract solicitation, but identifying reputable contractors to invite to the bidding process can be advantageous to the program. If a detail is left out of the original contract specifications, a change order can be added. Always remember to keep the lines of communication with procurement officers open in order to ensure that all contracts adhere to campus procurement code regulations.

Resources

American Bar Association Contracts Section
http://www.abanet.org/contract/home.html

 Cornell University Law School Legal Information Institute
http://topics.law.cornell.edu/wex/contract

 EPA WasteWise Program 
http://www.epa.gov/epawaste/partnerships/wastewise/index.htm

 Soft Drink Vending Contracts and Recycling Toolkit for Change
http://www.nrc-recycle.org/Data/Sites/1/MembersOnlyContent/SOFT%20DRINK%20

CONTRACTS%20Toolkit.pdf

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