Waste management companies bid for Omaha, Nebraska, contract

Waste management companies bid for Omaha, Nebraska, contract

Waste Management, FCC Environmental in the running for new 10-year collection contract.

February 4, 2019

Four companies have submitted bids for Omaha, Nebraska's new 10-year waste collection contract. 

FCC Environmental, Waste Connections of Nebraska and West Central Sanitation hope to be awarded the new contract, which Waste Management currently holds.

Bidders provided pricing for six options, with varying number of carts and different collection schedules, such as weekly and biweekly. The first option calls for three carts and separate weekly collections for garbage, yard waste and recyclables. The bids were reviewed by city council Wednesday.

"The bids received are within the estimates we expected and most show our costs will nearly double to continue the service we now provide," Mayor Jean Stothert said in a news release. "This decision will impact every taxpayer for the next ten years or more and we will ask the council to approve a contract that provides services that meet our needs, at a price we can afford."

The city currently pays Waste Management approximately $15 million per year. The contract has been in place since 2006 and expires Dec. 31, 2020.

Omaha has had issues with Waste Management over the years, particularly with yard waste collection. The city penalized Waste Management $300,000 last year for not picking up yard waste separate from trash. The company said driver shortages was part of the problem.

The request for bids has been in development for more than two years. The process included a series of public open houses, a test for cart-based collection, telephone surveys, comparative studies, environmental studies and input from Omaha residents. The city is also working with SCS Engineers, which will help review the bids.

For a three cart system and separate weekly collections, Waste Management's bid came in at $31.82 million, followed by Waste Connections at $31.15 million, FCC at $28.28 million and West Central at $21.91 million.

United Kingdom-based FCC Environmental has recently expanded U.S. operations in Florida and Texas.

Stothert will make the recommendation to city council in late March. The council will vote later this year to award the contract.