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<br /> Comprehensive Review of <br /> S olid W aste Collection and Disposal Options <br /> <br /> <br />v2.1 72 10/22/12 <br />private capital versus public capital. Due to its nature, use of public capital is subject <br />to careful budgeting, planning, and the political process. <br />Municipal operations also have the added step of gaining consensus and approval of <br />their respective governing political bodies, such as Town Councils or County Boards, <br />before implementing major program changes. The political process can affect the <br />speed of change. <br />If the Town wishes to consider outsourcing of its collection services, we recommend the <br />following: <br /> The Town should develop a document that provides a comprehensive description of <br />the types and level of service it provides, and clearly articulate the expectations it <br />would have of a contractor were it to outsource all or part of the services it currently <br />provides. This document could serve as the framework for a bid specification. <br /> The Town should get input from the community and the private sector regarding the <br />service level descriptions and expectations. <br /> The Town should develop and issue a request for bid, with the provision that the <br />Town’s SWS Division can also respond, and allow the Town the flexibility to award <br />or not award a contract depending on the results of the bids. <br /> The results of the bids should be evaluated based on costs and the intangible factors <br />described above. <br />5.2 OUTSOURCING: CONTRAC T OR F RANCHISE? <br />Across the industry, privatization/outsourcing of solid waste collection and disposal services is <br />typically initiated by one of two methods: <br /> A formal contract agreement for solid waste collections and disposal to a third-party, <br />private sector vendor; or, <br /> A franchise agreement with a similar private sector entity. <br />5.2.1 Solid Waste Collections Contract <br />An illustration of a formal contract arrangement for solid waste collection and disposal services <br />would include: <br /> A municipality advertising a formal request for proposal (RFP) for solid waste <br />collections and disposal services. <br /> Selecting a qualified company through this open bid process. <br /> The winning bidder and the municipality would then negotiate contractual details, <br />including fees and the duration of these contract services.