Fort Worth, Texas, extends $479M contract with WM

The city of Fort Worth, Texas, voted unanimously Nov. 9 to extend its contract with Houston-based Waste Management valued at nearly $479 million over 12 years.

As reported by the Fort Worth Report, this decision comes despite at least one company—The Woodlands, Texas-based FCC Environmental Services—estimating it could save the city $60 million during that same time period.

Assistant City Manager Valerie Washington told the Fort Worth Report before a city council meeting that it is easy for competitors to make such claims when they don’t have to back them up. She thinks the city got the best deal it could under the circumstances.

However, FCC Environmental Services Director of Public and Governmental Affairs Erica Holloway questioned how Washington could know that.

“Fair and open competition is what makes the economy go round, and the only way to know for certain you’re getting the best deal is to test the marketplace,” Holloway told the Fort Worth Report.

The deciding factor for several city council members was Waste Management’s proposal to subcontract with Fort Worth-based Knight Waste Services, a minority-owned local business; to waive the consumer price index adjustment for fiscal year 2022; and to install cameras in its trucks.

“We spend a lot of staff time and resources trying to ascertain missed trash pickups. The cameras will help us capture that information on the front end,” said council member Carlos Flores.

Waste Management will install the cameras and train its personnel on how to use them by May 1, 2022, according to the contract extension term sheet.

Other changes to the contract include a requirement to pick up missed trash and recycling within 24 hours and missed yard waste and bulk waste within 36 hours. If Waste Management fails to pick these up within that time frame, it would be considered “a priority one collection.” The company must strive to reduce this type of collection by 20 percent for trash and recycling and 10 percent for yard waste and bulk waste. It also must meet other goals set each quarter by the city to avoid $60 fines for missed collections.

The contract extension allows the city to fine Waste Management if it misses three daily collection routes in a month. The fine would be $300 per missed route collection.