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Resource Management Contracts: Innovative Solid Waste Management Method

Resource Management Contracts: Innovative Solid Waste Management Method. Julia Wolfe MassDEP Commercial Waste Reduction Coordinator 617-292-5987 or julia.wolfe@state.ma.us. Resource Management (RM) Contracts. What is RM Overview of MassDEP project and results How can hospitals benefit?.

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Resource Management Contracts: Innovative Solid Waste Management Method

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  1. Resource Management Contracts: Innovative Solid Waste Management Method Julia Wolfe MassDEP Commercial Waste Reduction Coordinator 617-292-5987 or julia.wolfe@state.ma.us

  2. Resource Management (RM) Contracts • What is RM • Overview of MassDEP project and results • How can hospitals benefit?

  3. 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 don’t 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.

  4. “THERE ARE NO WASTE STREAMS, ONLY WASTED RESOURCES” — Raj Mishra, General Motors Corporation, 1999

  5. 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.

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

  7. One Beacon Street Stop & Shop Texas Instruments Harvard University Fitchburg State College Verizon Acushnet Company Shattuck Hospital General Dynamics Assess RM Potential in MA Project Partners

  8. 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

  9. Results – MA RM Assessment Project 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 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

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

  11. RM In Action at Lemuel Shattuck Hospital • In FY’04 Shattuck saved $11,000 and diverted 44 tons of material to recycling. Fact Sheet: www.mass.gov/dep/recycle/files/rm/rmcontr.htm#rsd • Excellent relationship between contractor and hospital. • Chose a recycler that subcontracts its trash disposal. • RM provider will be compensated about $10,000.

  12. 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.

  13. 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.

  14. Additional Resources There are lots of resources at your fingertips! • Massachusetts Case Studies: MA DEP’s Resource Management Website: http://www.mass.gov/dep/recycle/files/rm/rmcontr.htm • Resource Management Contracting Manual: www.epa.gov/wastewise/wrr/rm.htm#manual • Join the MA WasteWise Program www.epa.gov/wastewise • Earth 911 or Cleanup.org www.cleanup.org

  15. Contact Julia Wolfe Commercial Waste Reduction Coordinator MassDEP 617-292-5987 or julia.wolfe@state.ma.us

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