Resource Management Contracts: Innovative Solid Waste Management Method

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Resource Management Contracts Innovative Solid
Waste Management Method

• Julia Wolfe
• MassDEP
• Commercial Waste Reduction Coordinator
• 617-292-5987 or
• julia.wolfe_at_state.ma.us

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Resource Management (RM) Contracts

• What is RM
• Overview of MassDEP project and results
• How can hospitals benefit?

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Solid Waste Contracts

• Contracts primary vehicle for solid waste
  service
• two-thirds or more of the U.S. municipal solid
  waste stream is managed through contracts.
• Many contract managers dont understand waste
  issues.
• Solid waste is usually not a large part of the
  budget.
• Solid waste costs rising and recovered materials
  markets are strong.
• Facility managers not taking advantage of cost
  cutting opportunities.

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• THERE ARE NO WASTE STREAMS, ONLY WASTED
  RESOURCES
• Raj Mishra, General Motors Corporation, 1999

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What is RM?

• Tool or method using contractual relationship to
  emphasize/reward resource efficiency through
  waste prevention, reuse, recycling, composting.
• Cap disposal costs
• Include a cost sharing component on resource
  efficiency
• Contractors will pursue resource efficiency when
  offered proper financial incentives
• Changes the more waste more money
• Allows generator to concentrate resources on core
  activities and resource manager to concentrate
  on waste.

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How can a resource manager help?

• A resource manager can help with both external
  and internal waste management activities that
  affect waste generation.

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Assess RM Potential in MA Project Partners

• One Beacon Street
• Stop Shop
• Texas Instruments
• Harvard University
• Fitchburg State College

• Verizon
• Acushnet Company
• Shattuck Hospital
• General Dynamics

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MA RM Assessment Project Results

• For the 9 organizations
• Potential to divert additional 5,000 tons/year
• Net cost savings of roughly 500,000
• 14 - 48 savings as a percent of affected base
  service cost

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Results MA RM Assessment Project

• Some Results
• Establish baseline
• Upper management support
• Not using contracts to reduce waste
• Trash contractors have no incentive or ability to
  optimize or limit hauling or disposal services

• Factors Limiting Adoption
• Lack of knowledge, visibility, and understanding
• Hauling and disposal is cheap compared to other
  organizational costs
• Lack of profit incentives for companies to
  provide RM services

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Massachusetts Pilots

• Hospital Lemuel Shattuck Hospital
• Defense Contractor Raytheon Corporation
• Hotel Saunders Hotel Group
• Property Management One Beacon Street
• WasteWise RM Workshop for Hospitals

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RM In Action at Lemuel Shattuck Hospital

• In FY04 Shattuck saved 11,000 and diverted 44
  tons of material to recycling. Fact Sheet
  www.mass.gov/dep/recycle/files/rm/rmcontr.htmrsd
  
• Excellent relationship between contractor and
  hospital.
• Chose a recycler that subcontracts its trash
  disposal.
• RM provider will be compensated about 10,000.

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RM In Action at Lemuel Shattuck Hospital

• Replaced 35 yd. compactor with 40 yd. compactor.
  Service level reduced 3x - 2x/wk. 400/month
  savings.
• Eliminated 40 yd. dumpster for bulk debris.
  Savings from dumpster rental (approximately
  100/month), hauling and disposal costs.
  Temporary dumpster rented if needed.
• New recycling cardboard, organics, scrap metal,
  pallets and electronics
• Reduced administrative overhead one contract as
  opposed to many.

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Conclusion

• Upfront work can pay off
• Brings in waste expert to focus on waste issues.
• Provides incentives to reduce waste
• Provides ability to work up the supply chain to
  reduce waste.

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Additional Resources
There are lots of resources at your fingertips!

• Massachusetts Case Studies MA DEPs Resource
  Management Website http//www.mass.gov/dep/r
  ecycle/files/rm/rmcontr.htm
• Resource Management Contracting Manual
  www.epa.gov/wastewise/wrr/rm.htmmanual
• Join the MA WasteWise Program
  www.epa.gov/wastewise
• Earth 911 or Cleanup.org
• www.cleanup.org

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Contact

• Julia Wolfe
• Commercial Waste Reduction Coordinator
• MassDEP
• 617-292-5987
• or
• julia.wolfe_at_state.ma.us