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CHAPTER 6 BOILER PLATE ITEMS There are some standard items that you should consider in the bid document. Some of these items summarize issues discussed in earlier sections. Scope of Work - Describe as specifically as possible the services that the contractor will provide. Include the types of materials that the generator will collect and the form that they must be in (loose, bagged, baled, etc.), the frequency of collection or delivery, the price for processing and sale of materials, transportation, etc. Contract Term - What is the length of the contract? Are there provisions to extend the contract? Who has the option to extend the contract? Pricing - The contract should describe any tipping fees, how they are determined (and potentially changed) and prices for commodities (fixed or variable price). Downgrading or rejecting loads - There must be a procedure for the processor or end market to downgrade or reject loads. Residue - How much residue does the processor or end market allow in incoming loads? What is the procedure if the load exceeds the residue rate? Invoices - The contract should describe payment procedures (both ways if the price for the commodity could go below zero). Scales - The contract should describe who will weigh the material and how those weights will be verified. Scales must meet the requirements of the Department of Agriculture or other authorizing agency. Applicable law - The contractor must meet applicable laws in the local area. Minority Participation - the contractor must meet local requirements for minority and women's business enterprise participation. Insurance - Contractor must have minimum levels of insurance (liability, worker's compensation, accident, etc.) Bonding - Depending on the size, scope and length of the contract, there may be a performance bond, letter of credit or corporate guarantee to protect the generator in the event of nonperformance by the contractor. Such bonds help protect the generator, but may add to the contract cost. Recycling - the processor or end market must recycle all materials except residue. Facility - the processor or end market should keep the processing facility relatively clean and operated according to industry standards. Penalties and Termination - The contract should clearly define what happens if one of the parties does not meet their obligations under the contract. Some local government contracts include a "termination for convenience" clause that allows the local government to terminate a contract (usually with 30 days notice) without any specific reason. Such clauses may provide protection for the local government, but must be considered in light of what additional cost the contractor may charge with such a provision and what such clauses may do to the relationship between the government and potential contractors. This is especially critical if the government agency actually uses these clauses. You can include a termination payment to the contractor in the contract. Dispute resolution - How will you resolve disputes between the parties (binding arbitration or litigation)? Record keeping and reporting - What information does the generator need to meet state and local requirements? Reports should include materials processed, materials sent to market, prices, etc. Recycled Paper and double siding - Part of good markets is creating end markets for recyclables. Make sure that you print all contract documents on recycled paper, double sided and that the bid document requires bidders to submit documents (and reports if they are the successful bidder) on recycled paper, double sided. The generator should address these issues in a good contract document. While including these issues, it is also important to keep the document as simple as possible. back to top |
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