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OVERVIEW
Under the 1988 Maryland Recycling Act, Baltimore City and the 23 Counties in Maryland were required to increase their recycling rate to 20 percent (for Baltimore City and Counties with greater than 150,000 in population) and 15 percent (for Counties with less than 150,000 in population). The counties had to meet these goals by 1994. According to 2004 figures (the latest available), the state currently has a 38.8 percent waste diversion rate. The waste diversion rate is comprised of a 35.8 percent recycling rate and a 3.0 percent source reduction credit. Because of this mandate, Counties (including Baltimore City) have developed programs to collect and recycle materials generated in the residential, commercial and institutional sectors. The Counties generally have control over the residential sector, either through their own or contracted collection programs. Their efforts with the commercial and institutional sectors have primarily included technical assistance to businesses and institutions since the Counties do not generally control materials generated in those sectors. Recyclable materials are generally not ready for manufacturers to use them as raw materials to make new products. The materials must have contaminants removed, be separated into components (for example, mixed paper being separated into newsprint, corrugated and office paper) and densified or baled subsequent to being sent to market. These services may require a processor (or a broker if the material is ready to go to the end market). As a result, recycling coordinators need to establish agreements or contracts to process these materials. These contracts range from informal agreements to have the materials picked up for a fixed price to long-term agreements (sometimes as long as 20 years) with prices that fluctuate based on market indices. MRC has designed this document to help recycling coordinators develop agreements or contracts that provide the best prices and service while allowing processors to make a reasonable profit. A contract is not just a one-time agreement developed between a generator and a processor. It is the start of a long-term relationship between the two parties. The contract is the beginning of the process, not the end. It is critical, therefore, for generators to have a good relationship with the recycling industry and the successful bidder. Some issues to consider include: 1) Is the contract fair to both parties? Has the contract allocated the risks to both parties? 2) Has the generator provided both the quantities required and the quality of material needed to meet market conditions? 3) How do the parties handle problems at the processing facility? MRC recommends that prior to beginning a procurement for processing that the generator contact his or her purchasing officials and legal counsel. The purchasing official can help design a procurement document that has appropriate language to meet company or government requirements and is easier for processors to understand. The better the processors understand the document, the better the response. Legal counsel can help identify items in your procurement document that could lead to bid protests or lawsuits. The generator should also identify potential bidders from state or local directories, trade associations and other sources. It is also important to have a pre-bid conference prior to accepting bids for processing materials. The pre-bid conference can clarify issues and help identify barriers that may prevent responsible and responsive contractors from bidding. This conference should be early in the bidding cycle to allow potential bidders to use the information to prepare a quality bid. NOTE: The Maryland Recyclers Coalition, the Northeast Maryland Waste Disposal Authority, the Maryland Environmental Service and all other parties responsible for preparing this manual are not liable for damages resulting from any recommendations in this document. back to top |
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