Success in Establishing New Contracts in a Time of Change

Bill 151, the Waste Free Ontario Act raises questions for communities that need to establish new or extend existing contracts. Without knowing exactly when the legislation will come into force or what it will mean, it’s important to provide flexibility through shorter term contracting to prevent unfunded obligations or a need to break terms of a multi-year agreement.

New Contracts for Recycling in the City of Peterborough
New Contracts for Recycling
in the City of Peterborough

RFP and Contract Assistance for the City of Peterborough
The City of Peterborough’s processing and collections contracts conclude at the end of 2016. Given the questions raised by Bill 151, the City turned to CIF for assistance in developing a joint RFP to manage through the period of transition should the bill become law. Working with existing contractors, the City was able to establish a three-year extension for both services.

Successful negotiations result in cost savings
Given the uncertainty of the changing legislation and rising costs associated from the evolving packaging stream  the City’s contractor’s were understandably concerned about extending contracts and anticipated a sharp increase in processing fees. CIF staff suggested installing new technology that could be amortized over the life of the contract and worked with the parties to draft language and terms that were acceptable to all. Savings of approximately $600,000 over the three-year term are expected.

Planning ahead leaves time for good decision-making
A 15 month timeline is recommended to develop, negotiate and complete a new RFP for services and at least three months to negotiate a contract extension. Insufficient time constricts the potential to develop ‘win-win’ options and the municipality’s negotiating position is weakened.

Include ‘change of law’ provisions in new contracts
Any program facing contract negotiations should include ‘change of law’ language to address any issues that may result from enactment of Bill 151. Contracts need to be vetted by your procurement and legal departments, with language to prevent penalties resulting from changes required over the life of the contract.

CIF staff are available to work directly with programs considering contract and RFP issues.

CIF and City staff completed a draft collection RFP for the City as part of this project. It is available for use/customization by any program. View Draft City of Peterborough Collection RFP and City of Peterborough RFP Development Report