A Look at Resource Management Contracting in Massachusetts WasteCap NE Summer Lecture Series

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A Look at Resource Management Contracting in
MassachusettsWasteCap NESummer Lecture Series

• Peggy Harlow, MassDEP
• peggy.harlow_at_state.ma.us, 617-292-5861
• www.mass.gov/dep/recycle/reduce/rmcontr.htm

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Presentation Overview

• Background
• Case Studies
• Lemuel Shattuck Hospital
• Raytheon Company
• Anna Jaques Hospital
• Lessons Learned

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Massachusetts Background

• MassDEP SW Master Plan Goal 70 waste reduction
  by 2010
• Commercial sector represents over 50 of MSW and
  most other wastes
• MassDEP had played a limited role in commercial
  sector when we started piloting Resource
  Management contracting

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The Evolution of RM in Massachusetts

• Two-phase pilot project (2001-2003)
• Phase I baselined waste volumes and contracting
  practices for 9 potential case study
  organizations
• Phase II - provided contracting assistance to
  qualifying organizations to develop RM contract
  and go out to bid (Shattuck Hospital, Raytheon)
• RM results workshop at Shattuck Hospital (2006)
• Audience hospitals, state agencies/state
  colleges
• Recruited additional pilots- Anna Jaques
  Hospital, Bridgewater State College (BSC)
• Provided contract assistance to both (2006-2007)
• Template BSC RFR and promote to state
  colleges/agencies (2007-2008)

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Case Study Shattuck State Hospital

• Industry healthcare - 278 bed hospital
• RM program 4 years
• RM vendor recycler, sub-contracted MSW to trash
  hauler
• 50/50 revenue share
• Average annual savings - 11,000
• MA WasteWise award recipient

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Shattuck by the Numbers
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Shattuck Program Highlights

• Replaced 35 yd. compactor with 40 yd.
• Reduced service level from 3x to 2x per week
  resulting in 400/month savings
• Managing one contract has reduced staff time on
  SW management issues
• Program has added cardboard, leaf and yard
  debris, pallets, electronics, metal
• Adding food waste in 2007

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Case Study Raytheon Company

• Industry national defense contractor
• RM program 1.5 years, 10 facilities (MA, RI,
  NH)
• Challenges Started with 65 recycling rate
• RM Goal Raise the bar higher
• Contractual Annual Goals
• increase in waste diversion by 5
• cost savings of 5

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Raytheon RM Contract Logistics

• New equipment
• Provide training (general, facilities staff)
• 1 site visit per week
• Monthly detailed metrics
• Quarterly RM meetings to discuss results and
  discuss opportunities for improvement

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Raytheon Programs Progress

• Took 6 months to get started at all 10 facilities
  prioritized certain sites
• Vendors first RM contract everyone is
  learning together
• Formal training still has not occurred
• Raytheon is actively involved in program and
  leading/pushing vendor
• Excellent customer service from vendor

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Year One - Program Highlights

• Raytheon has held several successful Zero Waste
  events annual holiday party
• Piloting organics recycling - food prep/dining
  waste, restroom paper towels
• Improved metrics, waste collection
• Received EPA WasteWise honorable mention award in
  Large Business category
• Cost savings from two new recycling collection
  processes was 84,000/yr (primarily labor)

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Raytheon - Looking Forward

• Assess CD waste needs
• Go to next level with internal program
• Work with other Raytheon vendors on upstream
  supply and packaging issues and dining center
  waste reduction
• Expand organics program to multiple locations

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Achieving RM results without the contract Anna
Jaques Hospital

• Negotiated with current waste hauler to achieve
  RM goals at cost neutral price
• Hauler provided training, signage, labeled
  containers
• Agreed to revenue share on cardboard/paper
• Meet 2x month to discuss program improvements
• Consolidating multiple contracts over time
• Took on shredding contract (offered better
  pricing)
• Will take on other contracts in future
  fluorescent bulbs, medical waste, C D

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Anna Jaques Paper Program

• Increased paper recycling after 1 month
• Will be adding baler for cardboard in Fall
• (hospital capitol expense)
• Hospital working with H2E and HIPPA staff to
  rewrite Document Destruction Policy to change
  program to chain of custody paper recycling
  (non-shredding)
• Expect to decrease trash pulls from every 5 days
  to every 7 days - 5,000 savings per year

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RM Lessons Learned

• Educate bidders
• Keep RFR simple
• If you need it ask for it, otherwise allow
  bidders to propose creative solutions
• Important to have transparent billing to be able
  to track progress
• Promote Results / Provide Recognition
• Workshops
• Case Studies
• Industry sector mentoring
• MA WasteWise
• Green Team / Employee Recognition