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 APPENDIX B
TECHNICAL REQUIREMENTS AND GUIDELINES FOR
SOLID WASTE MANAGEMENT CONTRACTS
1.
Introduction
This appendix outlines the steps necessary for developing contracts for
solid waste management services. Note that Air Force has their own service
contract guidance (AFR 400-28, Vol. 1). The Navy's guidance on writing and
inspecting service contracts is NAVFAC Manual MO-327 "Facility Support
Contract Quality Management Manual."
a.
Advantages of such contract service include the following:
(1) The acquisition of land, buildings and equipment is not
required.
(2) Many of the overhead and administrative costs are eliminated.
(3) The day-to-day operating problems of solid waste management are
diminished.
b.
Disadvantages of contract service include the following:
(1) High bid prices may result from limited contractor competition,
especially in thinly populated areas.
(2) The contractor may cut corners and skimp on the quality of
service to increase his profit margin. Therefore, contracts
shall provide for protection penalties. However, NAVFACENGCOM
contracts do not contain protection penalties since they are
difficult to enforce.
(3) To be attractive to private enterprise, the term of the contract
must cover a sufficient period for the contractor to amortize
his capital expenditures. However, long term contracts often
result in contractor complacency and poor performance.
2.
Types of Contract Services
Contract services may be used in parallel operations and/or in
functional area operations. In a parallel operation the contractor provides a
duplicate solid waste management service for specific wastes or certain
locations within an installation. This service may be necessary for those
problem wastes which cannot be managed safely in-house. However, the parallel
method is not normally cost effective. In functional area services --- the
most common type -- a contractor provides one or more of the services of
storage, collection, transfer, or disposal. The installation provides the
remaining services. In general, the more functions provided by the con-
tractor, the greater the economic advantages realized.
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