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Resource Management (RM)
Solid waste and recycling contracts directly influence how the vast majority of waste streams are managed. Most waste and recycling contracts, however, feature a profit incentive to contractors to maximize disposal levels (hauls) and/or a limited scope of service with multiple contractors handling separate waste streams or recyclables. This “fragmented” approach often lacks an emphasis on recycling and resource efficiency. Furthermore, waste and recycling contracts are often loosely managed—once rates are established, waste generators tend to only contact their contractors if waste and recycling containers overflow. For these reasons, traditional contracts do not tend to support waste minimization efforts.
RM is a contracting model for solid waste management where waste generators and contractors share financial benefits from “resource efficiency” innovations, including source reduction, reuse, recycling and composting. RM changes the nature of current disposal services to support waste minimization and recycling. As a performance-based contract strategy, RM taps into the expertise of external contractors to bolster waste reduction and recycling through value-added services, such as improved reporting, dedicated customer service, and analysis. The key to success in RM contracting is changing the compensation structure to provide incentives for contractors and reward them for achieving mutually determined goals, shifting the contractors’ profitability model from “haul/dispose more volume” to “minimize waste and manage resources better.”
RM contracting is based on the three premises: (1) significant cost-effective opportunities to reduce waste, boost recycling, and otherwise optimize services exist; (2) contractors will pursue them when offered proper financial incentives; and (3) financial incentives to contractors are financed from the savings generated through cost-effective improvements to your current waste/recycling system. For example, if contractors increase recycling or identify techniques for preventing waste altogether, they receive a portion of the savings resulting from the innovation. This arrangement enhances recovery of readily recyclable materials while promoting opportunities to develop new markets for difficult-to-recover materials. As a result, it promotes a business-driven effort—rather than regulatory initiatives—to make waste reduction and pollution prevention a priority. CEA has worked to advance RM in a variety of areas.
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| TOOLS AND CASE STUDIES
With funding from EPA’s WasteWise program, CEA has developed educational materials and tools to educate waste generators and help them implement RM. CEA authored a WasteWise Update issue on RM that features an overview of RM, three case studies, suppliers’ perspectives, and keys to successful RM contracting. A cornerstone tool in our program is the RM Contracting Manual – a step-by-step guide that takes waste generators through the process of contracting for RM services, including designing the RM program and RFP development, proposal evaluations, and contract conclusion. It also provides a useful RFP template and other resources to help organizations implement RM.
CEA has developed case studies for two organizations. It has helped implement RM programs:
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DIRECT CONTRACTING AND ASSISTANCE PROJECTS
To “take the next step” and further demonstrate the effectiveness of RM as a best practice, CEA to date has provided six organizations with contracting assistance to implement RM in their organizations. Funded by EPA’s WasteWise program, Massachusetts Department of Environmental Protection, Minnesota Office of Environmental Assistance, and Dakota County, MN, this contracting assistance has generally included a review of each organization’s current contracts, a baseline service cost and waste assessment, development and issuance of RM RFP, and assistance in bid evaluation.
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RESEARCH AND EVALUATION PROJECTS
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RM Concept Paper
Download (PDF)
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This concept paper, funded by U.S. EPA’s Office of Solid Waste, discusses the origins and practice of RM contracting, its characteristics, how it differs from traditional waste contracting methods, and shows how it can benefit both waste generators and RM contractors. |
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Organization RM Assessments
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The case studies listed below assess the potential for waste generators in a wide variety of settings to cost effectively increase recycling and reduce waste with the services of an RM contractor. Recommendations are also provided on how each organization can implement specific RM practices. The reports are organized by sector. For some, short 1-page “snapshots” are available summarizing key elements of each case.
For copies of any of the case studies listed below, please contact Laura Wolfson at (415) 421-4213 x14 or lwolfson@ceaconsulting.com.
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Commercial
- Acushnet Company
- General Dynamics Defense Systems
- Omaha Public Power District
- One Beacon Street
- Stop and Shop
- Texas Instruments
- Verizon
Institutional
- Fitchburg State College
- Harvard University
Municipal
- City of Tallahassee, Florida
- Clark County, Nevada
- Palm Beach County, Florida
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ADDITIONAL RESOURCES
For information on any of the above projects, please contact Tom Votta at (617) 822-2005 or Laura Wolfson at (415) 421-4213 x14 or lwolfson@ceaconsulting.com. |
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415.421.4213 
