Okaloosa County BOCC — February 28, 2017 — Request approval to award contract for solid waste and recyclables — agenda request — reading text

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: February 28, 2017 TO: Honorable Chairman and Members of the Board FROM: Greg Kisela SUBJECT: Request approval to award contract for solid waste and recyclables collection DEPARTMENT: Purchasing BCC DISTRICT: ALL STATEMENT OF ISSUE: Purchasing requests Board approval to award a contract to Waste Management, Inc. of Florida or Inland Service of Florida, LLC. (RFP 81-16) BACKGROUND & ANALYSIS: Public Works staff requested that Purchasing assist them with the procurement of a company to provide Solid Waste and Recyclables Collection, Transfer, and Processing/Disposal. A Request for Proposals (RFP) was advertised and a total of three (3) responses were received. Purchasing staff moderated an advertised Review Committee meeting and discussions progressed regarding the selection of Waste Management, Inc. of Florida. Waste Management Inc. of Florida had a fully responsive submission to the RFP and has experience as the current contractor to meet all expectations of the service. At your December 20, 2016 meeting, the BCC authorized staff to negotiate a contract with Waste Management to provide these services. At a special meeting on January 31, 2017, staff requested authorization from the BCC to seek supplemental pricing information from the three (3) providers based on the deletion of the requirement to provide new carts to the 32,500 residential customers and a modification to the cap on the annual CPI from 2% to 3%. The BCC endorsed these modifications and approved a 2/1/1 level of service with new recycling carts as well as pricing to reuse the existing recycling bins. On February 10, 2017, the County received three (3) responses (see attached). On February 13, 2017, the selection committee met to evaluate the responses. While Waste Pro submitted a proposal, they declined to provide pricing. The committee, after much deliberation, declined to recommend to the BCC one of the providers over the other. At the selection committee meeting and in their written proposal, Waste Management highlighted that the one hundred and eighty (180) day termination for convenience along with the ten (10) year term without a re-opener impacted their ability to provide better pricing. Inland Service did not take an exception to these terms. At the meeting on February 21, 2017, the BCC authorized the negotiating committee to negotiate contracts with both Inland Service and Waste Management and bring back both agreements at the special meeting on February 28, 2017 for final award. It was agreed to allow the providers to revise their numbers based on modifications to the termination for convenience clause as well as the term of the agreement. It was also agreed that the providers could adjust any of their supplemental numbers during the negotiating sessions. During the negotiations, Inland Service objected to the process since they had already provided their numbers. They also declined to adjust their numbers. They did request a ninety (90) day grace period on the penalty portion of the contract as they learned the routes and they also requested one hundred and twenty (120) days for delivery of the new recycling carts if the BCC approved the enhanced level of service. Waste Management lowered their collection and disposal numbers for both providing a new recycle cart and reusing the existing recycling bin (see attached spreadsheet) if the termination for convenience was eliminated and the initial term is for five (5) years with three additional terms of five (5) years by mutual consent of the parties. Waste Management is unwilling to enter into a contract unless these terms are modified. The negotiating committee met after the sessions with the providers and unanimously agreed to recommend Waste Management with their adjusted collection and disposal numbers along with the modifications of the termination for convenience and the term as specified. This recommendation was based on the fact that the costs were relatively the same and that Waste Management had a national presence and over two (2) decades of service to Okaloosa County. The committee did not recommend the new recycling cart versus reusing the existing recycle bin. The projected rate increase for reusing the existing bin is approximately 23% versus a 30% increase for the new recycle cart. OPTIONS: Approve the authorization to award the contract to Waste Management, Inc. of Florida to provide Solid Waste and Recyclables Collection, Transfer, and Processing/Disposal. or, Approve the authorization to award the contract to Inland Service of Florida, LLC to provide Solid Waste and Recyclables Collection, Transfer, and Processing/Disposal. RECOMMENDATION: Staff recommends authorization to award the contract to Waste Management, Inc. of Florida to provide Solid Waste and Recyclables Collection, Transfer, and Processing/Disposal. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator