Solid Waste Management and Recycling Service Contracts: Performance Management and

Lessons Learned

BJ Tipton & Amy Preble

Table of Contents

• Overview of our services and history• Why we contract the services we do• What goes into a good contract• Lessons learned– Bid preparation– Accountability – Customer service– Compensation and billing accuracy

• Next steps: Where do we go from here?

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UNC Office of Waste Reduction and Recycling Services and History

Then:• Student and volunteer

initiated program--1989• 1 employee• 1 contractor • Initial purchase of 155 bins• Materials collected:

– Glass– Aluminum– White paper– Newspaper

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UNC Office of Waste Reduction and Recycling Services and History

Now:• Employees: 12 total • 6 separate contracts• Food waste composting

– 5 locations

• Indoor recycling – 240 buildings– 1,300 locations– 2,750 bins

• Outdoor recycling– 100 outdoor sites– 529 carts

• Trash and cardboard – 170 trash dumpsters– 130 cardboard dumpsters– 23 compactors

• Walkway recycling– 47 sites 4University of North Carolina at Chapel Hill,

Office of Waste Reduction and Recycling

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UNC Office of Waste Reduction and Recycling Services and History

• Services we contract:– Confidential paper shredding

• Gaylords

– Food waste and compost• Carts

– Indoor recycling• Central containers

– Outdoor recycling• Carts

– Trash and cardboard collection • Dumpsters• Horizontal Compactors• Rolloff Containers• Major equipment repairs

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• Services we perform:

– Cart washing– Compactor maintenance

and repairs– Confidential paper – Education and outreach– Indoor recycling– Pallet pickups– Rolloff hauls (small)– Site cleanup– Special event set up

UNC Office of Waste Reduction and Recycling Services and History

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UNC Office of Waste Reduction and Recycling Services and History

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UNC Office of Waste Reduction and Recycling Services and History

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UNC Office of Waste Reduction and Recycling Services and History

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Why we contract the services we do.

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• Early adopter…pilot program that has gone viral…

• Easier to get money for contracts vs.– creating and adding positions– buying trucks– having space to process and store materials

• Less direct day-to-day operations supervision needed, no experience directly marketing materials

What goes into a good contract?

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• College and University Recycling Coalition (CURC) www.curc3r.org– Recycling and Beyond: A College Campus Primer

Chapter 17: Contracts (written by Christine von Kolnitz Cooley and Karyn Kaplan)

• North Central Texas Council of Governments (NCTOG) Recycling Contract Negotiation Guidebook www.nctcog.org

• South Carolina Collegiate Recycling Professionals – Certification Manual

• Chapter 8: Contracts and Marketing

What goes into a good contract?

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North Central Texas Council of Governments (NCTOG) Recycling Contract Negotiation Guidebook, page 3

This Guidebook is organized into eight chapters, plus an introduction. The organization is summarized below.

– Introduction – Chapter 1 – Recycling Contracting in North Central Texas – Chapter 2 – Engaging in the Competitive Procurement Process – Chapter 3 – Developing General Contract Provisions – Chapter 4 – Developing Collection Contract Provisions – Chapter 5 – Developing Processing Contract Provisions – Chapter 6 – Understanding the Financial Terms of Recycling Contracts – Chapter 7 – Managing Contract Administration – Chapter 8 – Resources and Reference Materials

North Central Texas Council of Governments (NCTOG) Recycling Contract Negotiation Guidebook, page 3 www.nctcog.org

What goes into a good contract?

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North Central Texas Council of Governments (NCTOG) Recycling Contract Negotiation Guidebook, page 2-4 www.nctcog.org

What goes into a good contract?

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• Key parts of our contracts– Purchasing’s boilerplate language– Scope and services to be performed

• Definitions of materials• Response time to requests/work orders• List of service locations and schedules

– Creation of database (old sheets, “bin bible,” contractor control)• Anticipated volumes/tonnages• Priority buildings (don’t miss, noise, hard to access)• Site maintenance• Materials accepted and markets for them

What goes into a good contract?

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• Key parts of a contract (continued)– More expectations and parameters• Employee behavior and appearance• Equipment appearance and function• Health and safety considerations• Security considerations

What goes into a good contract?

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• Communication and contract administration– Reporting of stats/weights– Billing dates– Monthly meetings– Daily check-ins (indoor: phone, front load/rolloff:

have one of contractor’s radios—instant communication)

– Location and schedule changes– Contractor reporting of problems

What goes into a good contract?

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• Bid process– 2 part bid• Technical• Cost

• How will pricing be structured?– Per building– Per ton (actual weights or estimates)– Per pickup– Per bin– Combinations

Lessons Learned

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• Bid Preparation– Have our own data– Have a mandatory site meeting (tour)– Be specific: of it’s not in there, it won’t happen– Detail on markets (harder to get info once in

contractual relationship)– References (from similar businesses/entities)

Lessons Learned

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• Accountability– How much time are you willing to spend to

supervise their crews?– Contractor supervise their own crews • Contract had to specifically state this expectation—

contractors weren’t doing it• One contract—indoor—was having serious problems• Contractor chose to send someone to campus to

inspect sites to see how work is performed

Lessons Learned

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• Accountability– Regular indoor site inspections• OWRR to hold contractor accountable• Performance standards which include monetary

penalties—contract language• Examples of performance expectations (photos of bags,

lids, etc.)

Lessons Learned

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Lessons Learned

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Lessons Learned

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Lessons Learned

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Lessons Learned

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• Location and scheduling lists– Keep location listings (database accuracy)– Keep their route info current– Contractor telling us if bins move or are missing– Us telling contractor if locations move or add– Coordinating schedule changes– Contractor carrying their sheets!

example

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Lessons Learned

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• Customer Service:– We want to communicate with our customers. We

want the contractor to communicate with us—their customer.

– When we get a call• Check database

– See if site is on our list– When it’s due

• Work order system– Sign off (really getting them done, not just signing them!)– Recording in our system– Email to customer

Lessons Learned

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• Compensation and Billing Accuracy– Base service fees– Processing fees– Revenue sharing– Contract fee adjustment

* From the NCTOG Contracting Negotiation Guidebook, pages 1-10, 1-11

Lessons Learned

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• Compensation and Billing Accuracy– How billing is structured• Per building• Per stop• Per container (dumpsters, bins, carts)• Per ton

– Actual weights» Truck» Containers

– Estimated weights

Lessons Learned

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• Pricing structure of our contracts

– Animal Bedding• Per cart emptied

– Food waste and composting• Per ton • Per site minimum tonnage

– Frontload contract• We own the Dumpsters• Pay for each pickup• Pay actual landfill fees

– Indoor contract• Per ton• Would recommend a per building charge (but we have too many bldgs to manage that!)

– Outdoor contract• Per site fee (max and min range of carts allowed)

– Rolloff hauls• We own and maintain the compactors• Haul rate based on distance to destination• Actual landfill fees

Lessons Learned

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• Compensation and Billing Accuracy– Contract Administrator needs to review and sign off

on invoices• Accuracy, cost savings• Most businesses don’t do this

– Diligence is a MUST• Actual weights vs. estimated (pay by ton)• Locations and schedule (by site or pickup)• Changes in service locations, frequency, buildings off-line or

demolished• Holiday service reductions

Next Steps: Where do we go from here?

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• Single stream?• Cost savings?• Housekeeping?• In-house?

Questions?

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Thank you!

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• BJ Tipton, Solid Waste Program Manager, btipton@facilities.unc.edu

• Amy Preble, Recycling Coordinator, amy.preble@facilities.unc.edu