_C O N F I D E N T I A L - Minnesota Pollution Control Agency



Request for Proposal: Services for Resource Management,

Minnesota Correctional Facility – St. Cloud

TABLE OF CONTENTS

I. SPECIAL TERMS, CONDITIONS, AND SPECIFICATIONS I-1

A. PREFACE STATEMENT I-1

B. ESTIMATED AMOUNT I-1

C. ESCALATION I-1

D. DE-ESCALATION I-2

E. ADMINISTRATIVE PERSONNEL CHANGES I-2

F. CONTRACT VENDOR PERSONNEL AND PROJECT MANAGEMENT I-2

G. FUNDING OUT CLAUSE I-2

H. PRICING OFFERED IN RESPONSE I-3

I. FOREIGN OUTSOURCING OF WORK PROHIBITED I-3

J. AWARD OF RELATED CONTRACTS I-3

K. AWARD OF SUCCESSOR CONTRACTS I-3

L. JOINT VENTURES/SUBCONTRACTING I-3

M. JOINT VENTURES PAYMENT/SUBCONTRACTOR PAYMENT I-4

N. DAMAGED PROPERTY I-5

O. RECYCLABLES MUST BE RECYCLED I-5

P. COMPLIANCE WITH LOCAL, STATE AND FEDERAL LAW I-5

Q. SITE SECURITY I-6

R. SOLID WASTE CONTAINER SAFETY I-7

II. INTRODUCTION TO WASTE AND RECYCLING RESOURCE MANAGEMENT (RM) SERVICES RFP SPECIAL TERMS, CONDITIONS AND SPECIFICATIONS II-1

A. RM SERVICES RFP FACILITY BACKGROUND II-1

B. POTENTIAL RM SERVICES AT ADDITIONAL FACILITIES II-1

C. PRE-PROPOSAL MEETING AND SITE TOUR II-1

D. RM SERVICES RFP SCHEDULE II-2

E. EVALUATION CRITERIA II-2

F. RM SERVICES RFP PRIMARY CONTACT PERSON AND INQUIRIES II-5

III. RM SERVICES SPECIAL TERMS, CONDITIONS, AND SPECIFICATIONS III-5

A. RM SERVICES RFP PURPOSE AND OBJECTIVES III-5

B. SCOPE OF WASTE AND RESOURCE TYPES III-6

C. KEY DATES TO MEET RM SERVICES OBJECTIVES III-8

D. TRANSPARENT BILLING REQUIREMENT III-9

E. WASTE COLLECTION AND DEPOSIT MANIFEST REQUIRED III-9

IV. RM SERVICES RESPONSE ITEMS IV-1

A. COMPLETE RESPONSES REQUIRED IV-1

B. RM SERVICES QUALIFICATION RESPONSE ITEMS IV-1

C. ENVIRONMENT AND SAFETY RM SERVICES RESPONSE ITEMS IV-2

D. RM SERVICES OPERATIONS PLAN IV-3

E. RM SERVICES BASE FINANCIAL RESPONSE IV-4

F. PRELIMINARY WASTE REDUCTION Bonus FINANCIAL RESPONSE IV-4

G. RM SERVICES ALTERNATE FINANCIAL RESPONSE IV-4

H. JOINT VENTURES/SUBCONTRACTING IV-5

Appendix A Acknowledgement of Receipt and Intent to Propose

Appendix B Existing Levels of Service

Appendix C Bid Response Forms

Appendix D “Must Use” Contract Releases

SPECIAL TERMS, CONDITIONS, AND SPECIFICATIONS

1 PREFACE STATEMENT

1 The information contained below describes the special terms and conditions of specifications applicable to the RFP and subsequent contract and are in addition to the general terms and conditions. No verbal arrangements or understandings will alter the written specifications and conditions of this request for proposal.

2 ESTIMATED AMOUNT

1 The estimated total dollar value of the Contract for one year is $ 35,000.00 - $40,000.00. However, this shall not be construed as either the minimum or maximum amount. It shall also be understood and accepted by the responder that any quantities shown in this RFP are estimated quantities only and impose no obligation upon the State either minimum or maximum.

3 ESCALATION

1 Prices shall be firm for the first year of the Contract.  After the first year, escalation may be allowed on July 1 of each year based upon a demonstrable industry wide or regional increase in the Contractors’ costs and written approval of the State and the Acquisition Management Specialist (AMS).

2 Prices may escalate November 1, 2006, or, if the Contract is being extended, when the contract amendment to extend the Contract is fully executed by both parties, whichever is later.  Requests for price increases shall be submitted to the AMS sixty days prior to the date when the new prices would become effective.  Requests for price increases shall be accompanied by proof of demonstrable industry wide or regional increases in the Contractor’s costs.  The amount of any increase is not to exceed 10 percent for any commodity/service over the life of the Contract.  The exact amount of escalation if any will be governed by the validity of the documentary evidence submitted and is negotiable at the State’s option.  No price increase will be effective until approved by the AMS and set forth in a fully executed amendment to the Contract. Fuel surcharges are not part of the “not to exceed 10 percent restriction.”

3 In the event that fuel prices increase significantly during the life of the contract, a fuel surcharge shall be allowed.  If the price of fuel rises by more than $0.40 per gallon over the statewide average price as reported for June 1, 2005, by the American Automobile Association's (AAA) Daily Fuel Gauge (), a fuel surcharge equal to the amount actually paid above the STATEWIDE average price on the first day of the quarter (January 1, April 1, July 1, or October 1) the gas is purchased when the $0.40 trigger point is applied will be paid to the Contractor. This shall apply to either gasoline or diesel fuel.  If a fuel surcharge is implemented under this provision, the Contractor shall provide copies of receipts for fuel purchases with the invoice.  If a Contract amendment for a price escalation is approved under section B, the statewide average fuel price will be re-established at the time of the amendment and the fuel surcharge will not apply until the new average plus the $0.40 trigger level is exceeded.

4 DE-ESCALATION

1 The Contractor shall notify the AMS of any price decreases and shall apply the discounted price immediately.  Price reductions shall be set forth in a fully executed amendment to the Contract.

5 ADMINISTRATIVE PERSONNEL CHANGES

1 The Contractor must notify the AMS of changes in the Contractor’s key administrative personnel, in advance and in writing. Any employee of the Contractor, who in the opinion of the State of Minnesota is unacceptable, shall be removed from the project upon written notice to the Contractor. In the event that an employee is removed pursuant to a written request from the AMS, the Contractor Vendor shall have ten (10) working days in which to fill the vacancy with an acceptable employee.

6 CONTRACT VENDOR PERSONNEL AND PROJECT MANAGEMENT

1 If the need arises to add to or remove any of the Contract Vendor’s key personnel named in the transmittal letter, whether permanently or temporarily, the Contract Vendor must provide written notification two weeks in advance to the Acquisition Management Specialist. This notice is only required if the change is for more than 10 consecutive workdays excluding normal vacation leave. If the Contract Vendor is adding personnel, the written notification should include the proposed individual’s name and his or her resume. If the AMS does not approve the proposed change(s), the AMS will respond in writing within two weeks.

7 FUNDING OUT CLAUSE

1 Not withstanding paragraph 8 CANCELLATION OF THE CONTRACT, of the General Terms and Conditions, the State may immediately terminate this Contract if it does not obtain funding from the Minnesota Legislature beyond June 30, or another funding source; if funding cannot be continued at a level sufficient to allow for the payment of the goods or services in the Contract, or if operations of the paying entity are being discontinued. Termination will be by written or fax notice to the Contractor. The State is not obligated to pay for any goods or service accepted or provided after notice and effective date of termination. However, the Contractor will be entitled to payment for goods or services accepted or satisfactorily performed up until the effective date of the cancellation. The State will not be assessed any penalty if the Contract is terminated in accordance with this section. The State must provide the Contractor with notice within a reasonable time after the decision is made to cancel the Contract.

8 PRICING OFFERED IN RESPONSE

1 Prices listed in your response to this solicitation must take into consideration all inherent costs of providing the requested goods and/or services. The responder agrees to pay any and all fees, including, but not limited to: duties, custom fees, permits, brokerage fees, licenses and registrations. The State will not pay any additional charges beyond the price(s) listed in the response, unless otherwise provided for by law or expressly allowed by the terms of the solicitation.

9 FOREIGN OUTSOURCING OF WORK PROHIBITED

1 All services under this Contract shall be performed within the borders of the United States. All storage and processing of information shall be performed within the borders of the United States. This provision also applies to work performed by subcontractors at all levels.

10 AWARD OF RELATED CONTRACTS

1 In the event the State undertakes or awards supplemental contracts for work related to the Contract or any portion thereof, the Contractor shall cooperate fully with all other contractors and the State in all such cases. All contracts between subcontractors and the Contractor shall include a provision requiring compliance with this section.

11 AWARD OF SUCCESSOR CONTRACTS

1 In the event the State undertakes or awards a successor contract for work related to the Contract or any portion thereof, the current Contractor shall cooperate fully during the transition with all other Contractors and the State in all such cases. All contracts between subcontractors and the Contractor shall include a provision requiring compliance with this section.

12 JOINT VENTURES/SUBCONTRACTING

1 The State does not preclude joint ventures among groups of contractors when responding to the solicitation. However, one contractor must submit a response on behalf of all the others in the group. The Contractor that submits the response will be considered legally responsible for the response (and the Contract, if awarded).

2 If the Responder is submitting a response that includes a joint venture or subcontractors, the Responder is required to list the company names in the response in Section IV.H.

4 Only subcontractors that have been approved by the AMS can be used for this Contract.

5 After the effective date of the Contract, the Contractor shall not, without prior written approval of the AMS, subcontract for the performance of any of the Contractor’s obligations that were not already approved for subcontracting when the Contract was awarded.

6 During this Contract, if an approved subcontractor is determined to be performing unsatisfactorily by the AMS, the Contractor will receive written notification that the subcontractor can no longer be used for this Contract.

7 The provisions of the Contract shall apply with equal force and effect to all approved subcontractors engaged by the Contractor. Notwithstanding approval by the State, no subcontract shall serve to terminate or in any way affect the primary legal responsibility of the Contractor for timely and satisfactory performance of the obligations contemplated by the Contract.

13 JOINT VENTURES PAYMENT/SUBCONTRACTOR PAYMENT

1 In accordance with Minn. Stat. § 16A.1245, the Contractor shall, within ten (10) days of receipt of payment from the State, pay all subcontractors and suppliers having an interest in the Contract their share of the payment for undisputed services provided by the subcontractors or suppliers. The Contractor is required to pay interest of one and one-half percent (1½ %) per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid, undisputed balance of one hundred dollars ($100) or more will be ten dollars ($10). For an unpaid balance of less than one hundred dollars ($100), the amount will be the actual penalty due. A subcontractor that takes civil action against the Contractor to collect interest penalties and prevails will be entitled to its costs and disbursements, including attorney’s fees that were incurred in bringing the action. The Contractor agrees to take all steps necessary to comply with said statute. A consultant is a subcontractor under the Contract. In the event the Contractor fails to make timely payments to a subcontractor or supplier, the State may, at its sole option and discretion, pay a subcontractor or supplier any amounts due from the Contractor and deduct said payment from any remaining amounts due the Contractor.

2 Before any such payment is made to a subcontractor or supplier, the State shall provide the Contractor written notice that payment will be made directly to a subcontractor or supplier. If there are no remaining outstanding payments to the Contractor, the State shall have no obligation to pay or to see to the payment of money to a subcontractor except as may otherwise be required by law.

14 DAMAGED PROPERTY

1 Any damage by the Contract Vendor to the State’s property, including trees, shrubs, lights, islands, water hydrants, containers, container equipment, compactor and any other part of the property, shall be repaired and or replaced in full by the Contract Vendor to the satisfaction of the State.

15 RECYCLABLES MUST BE RECYCLED

1 Note that according to MN Statute115A.95; Recyclable Materials, a disposal facility or a resource recovery facility that is composting waste, burning waste, or converting waste to energy or to materials for combustion may not accept source-separated recyclable materials, and a solid waste collector or transporter may not deliver source-separated recyclable materials to such a facility, except for recycling or transfer to a recycler, unless the director of the OEA determines that no other person is willing to accept the recyclable materials.

16 COMPLIANCE WITH LOCAL, STATE AND FEDERAL LAW

1 The Contract Vendor shall dispose of rubbish in accordance with the county’s solid waste plans (Waste Management Act, Minn. Stat. § 115A.46, subdivision 5) and all county ordinances and agreements.

2 The Contractor must comply with all applicable federal, state, and local government regulations and MCF-SCL policies applicable to this undertaking and/or governing the recycling, storage, transportation and disposal of non-hazardous solid waste resource streams. Lack of knowledge of the Responder shall in no way be a cause for relief from responsibility or constitute a cognizable defense against the legal effects thereof.

3 The Contract Vendor shall comply with all existing state, local, and federal rules and regulations, and future amendments thereto with regard to commercial garbage vehicles, transportation, waste disposal, and disposal sites.

4 Any compensation or fines required of the Contractor by regulating agencies will be paid by the Contractor and will not be reimbursed by the State.

17 SITE SECURITY

1 The Contractor shall comply with all security duties that are required in the Correctional Facility. The Contractor and its employees shall have proper identification to enter the facility and must sign in at the time of arrival and departure. A valid Minnesota Drivers License and/or Minnesota Identification Card shall be presented at the time of entry for pickup of solid waste and recyclables. The Contractor shall note that an Officer will escort the Contractor in and out of the gate and all vehicles entering the facility shall be inspected upon entry and departure of the facility. Please note the following security instructions:

1 Pickup at the Loading Dock for the 40-cubic yard compactor on a scheduled or as needed basis is as follows: Upon arriving at the Truck Gate, the driver will surrender his/her driver’s license and receive in return an MCF/SCL temporary ID, which states “Truck Gate Delivery Pass, Warehouse Only”. The driver will then proceed unescorted to the loading dock. Upon leaving from the Truck Gate, the ID will be surrendered and the driver’s license returned. Access is provided 7:40 a.m. to 8:00 a.m., Monday through Friday, except holidays.

2 The Contractor shall note that MCF - St. Cloud owns two 40-cubic yard dumpsters (to be used for rubbish) and a compactor. The Contractor shall disconnect the full 40-cubic yard dumpster that is connected to the compactor and connect the other empty 40-cubic yard dumpster. The full dumpster shall be removed from the facility grounds and stored at the Contractor’s facility until the next collection.

3 The Contract Vendor shall note that removal of the full dumpster, disconnection and re-spotting of the empty dumpster must be done between the hours of 7:40 a.m. and 8:00 a.m., Monday through Friday, except holidays. There may need to be additional pickups that will be arranged as needed with the Contract Vendor. Response time for additional pickups shall be within a 24-hour period from the time the call is placed.

4 Pickup for other dumpsters or containers on a scheduled or as needed basis is as follows: Upon arriving at the Truck Gate, the driver will surrender his/her driver’s license and receive in return an MCF/SCL temporary ID, which states “Truck Gate Pass, Escort Required” and then will be escorted by an MCF/SCL staff while on the facility grounds. Upon leaving from the Truck Gate, the ID will be surrendered and the driver’s license returned. Access is provided 7:40 a.m. to 8:00 a.m., Monday through Friday, except holidays.

18 SOLID WASTE CONTAINER SAFETY

1 Dumpsters or other containers supplied by the Contractor shall be watertight. The Contractor shall be responsible for all spillage caused by the Contractor’s actions or lack of actions. The Contractor shall be responsible for the upkeep of their dumpsters or other containers. The dumpsters and other containers and the MCF-SCL 40 cubic-yard container must be kept as clean as possible. The Contractor shall provide cleaning and disinfecting of all dumpsters or other containers provided by the Contractor which contain or have contained solid waste a minimum of once per month during the months of April and October of each year. The dumpsters or other containers shall be disinfected per Minnesota State Health Department codes and the sanitizing agent shall be disposed of according to the local waste treatment facility.

2 Any modification needed to the dumpsters or other containers will be done by the Contract Vendor at the Contract Vendor’s expense including the cost of removal from the site. Alterations to the dumpster must have prior approval from the Physical Plant Director at MCF - St. Cloud. The State reserves the right to increase or decrease the number and size of containers and frequency of pickup.

INTRODUCTION TO WASTE AND RECYCLING RESOURCE MANAGEMENT (RM) SERVICES RFP SPECIAL TERMS, CONDITIONS AND SPECIFICATIONS

1 RM SERVICES RFP FACILITY BACKGROUND

1 The Minnesota Correctional Facility St. Cloud (henceforth “MCF-SCL”), 2305 Minnesota Boulevard, St. Cloud, Minnesota 56304, is a level four, close-security institution built in 1889, remodeled and modernized. The MCF-SCL population is 1,000. The MCF-SCL serves as the department’s intake center for adult males.

2 The MCF-SCL is located 65 miles northwest of the Twin Cities, contains five cell houses; six living units; two dormitories; academic, vocational and industrial work areas; and administrative offices. Also on site is a power plant, food service cafeteria, laundry, warehouse, and health services facilities.

3 Various educational opportunities are available including adult basic education, GED instruction, and vocational training with programs in barbering, masonry, painting, and decorating. MINNCOR Industries oversees the production of Minnesota’s auto and truck license plates and tabs.

4 Contacts for waste management services at the Minnesota Correctional Facility – St. Cloud include: Joe Teff, Health and Safety Officer, Phone: 320-240-3053, and Bob Litfin, Waste Collections Coordinator, Phone: 320-240-5628.

2 POTENTIAL RM SERVICES AT ADDITIONAL FACILITIES

1 The St. Cloud MCF-SCL is one of ten correctional facilities in the state of Minnesota. The Department of Corrections expectation is that should the MCF-SCL’s RM Services Program be successful, the same RM services could be expanded to the nine other correctional facilities.

3 PRE-PROPOSAL MEETING AND SITE TOUR

1 A Pre-Proposal meeting and site tour will be held on August 16th, 2005, from 10:15 AM to 12:00 PM Central Daylight Time, USA. Prospective Responders who intend to submit a response to this RFP are strongly encouraged to attend the Pre-Proposal meeting. If a Prospective Responder would like to participate in the process, he/she should provide an acknowledgment of Receipt and Intent to Propose (Appendix A) including the names and contact information of all persons from the Responder’s company planning to attend the Pre-Proposal meeting and site tour.

2 The preliminary Pre-Proposal meeting agenda includes:

1 Overview of the MCF-SCL’s existing operations

2 Overview of the RM Services RFP

4 Overview of the response form(s)

5 Q&A

7 Site tour

4 RM SERVICES RFP SCHEDULE

1 The Department of Administration Materials Management Division expects to select a Contractor in mid-October, 2005. The anticipated schedule for the RM selection process is as follows:

1 August 2, 2005, RFP release to Prospective Responders.

3 August 11, 2005, deadline for submission of acknowledgement of receipt and attendance of Pre-Proposal meeting.

5 August 16, 2005, Pre-Proposal meeting and site tour.

7 August 23, 2005, 10:00 a.m. deadline for submission of questions on RFP.

9 August 30, 2005, send out summary of questions, comments and or addendum of RFP to all candidates.

11 September 8, 2005, final date for submittal of responses.

5 EVALUATION CRITERIA

1 The Department of Administration Materials Management Division (MMD), at its sole option, will select the response which best fulfills the requirements and provides the best value to the MCF-SCL. The Department of Administration will facilitate the evaluation of all submitted responses.

2 The State shall conduct a comprehensive evaluation if responses to this RFP. Each section of this RFP will be evaluated separately. The evaluations will be conducted in five (5) phases:

1 Phase I - Review and Select Responsive, Compliant Responses.

a The purpose of the phases is to determine if each response complies with the mandatory terms, conditions and specification in the RFP. A response must comply with all instructions listed in this RFP. The State reserves the right to reject any and all responses, to modify these RFP specifications, or to waive any informality in the RFP. Any response found to be non-responsive shall be eliminated from further evaluation.

3 Phase II - Evaluate Responses

a Only those responses found to be responsive under Phase I will be considered in Phase II. During the course of the Phase II evaluation, the State may request oral presentation by the responders and the opportunity to interview key personnel. The State may submit a list of detailed comments, questions, and concerns to one or more responders for response. The responses should be made in writing, as the State will only use what is in writing for evaluation purposes.

b The total score, for those responders selected to respond, may be revised as a result of the responses. However, the State reserves the right to make an award without further clarification of the responses received. Therefore, it is important that each response be submitted in the most complete manner possible.

c The responses will be evaluated on the following criteria, which include, but are not limited to (criteria are not listed in order of ranking or weighting):

i Completeness of Response

ii Management & Business Systems

iii Preliminary Operation Plan

iv Data Information Systems and Reporting

v Experience with Resource Management Contracts

vi Current RM Capability

vii Waste Reduction Targets

viii Billing and Incentive Structure

ix Pricing

x Safety & Health Programs

d The highest possible score will be 100 points. Price will be evaluated as 60% of the score. The low-cost response receives the maximum points allocated. The higher- cost responses receive points using the following formula:

Low Cost Response Amount X Maximum Price Points (60)

Higher Cost Response Amount

4 Phase III - Select finalist(s)

a Only those responses found to be responsive under Phase II and I will be considered in Phase III. The evaluation team will review the scoring in Phase II in making its recommendation of the successful responder. First, consideration will be given to the responder with the highest total points. In the event that contract negotiations are unsuccessful, the responder with the next highest number of points will be selected for consideration. The final award decision will be made by the commissioner of Administration or designate. The commissioners may accept or reject the recommendation of the evaluation team.

5 Phase IV - Negotiate contract with finalist(s)

a Contract negotiations will be made with the Department of Administration. Should the State be unable to negotiate a Contract with the responder of first choice for any reason, the State reserves the right to negotiate with the responder of second choice, Once negotiations are complete, the responses become public data.

7 Phase V - Sign contract

a The State reserves the right to request a best and final offer if the evaluation team deems it necessary.

3 During the evaluation process, all information concerning the responses submitted will remain private and will not be disclosed to anyone whose official duties do not require such knowledge. At any time during the evaluation, the State may request a responder to provide explicit written clarification to any part of its response.

4 Except at the invitation of the evaluation chairperson and with the approval of the AMS, no activity or comments from responders regarding this RFP shall be discussed with any of the evaluation committee persons during the evaluation of the responses. A responder who contacts an evaluation committee member may, as a result, have its response rejected.

5 Non-selection of any response will mean that either another response was determined to be more advantages to the State or that the State exercised its right to reject all responses. At its discretion, the State may perform appropriate cost and pricing analysis of a vendor’s response, including an audit of the reasonableness of any response.

6 If a contract is awarded, the award will be made to that financially and technically responsive vendor whose response conforms to all conditions and requirements of the RFP, and which is most advantages to the State, with price and other factors considered, Responses are private or nonpublic data until the completion of the evaluation process. The completion of the evaluation process means that the State has completed negotiating the Contract with the selected vendor. If no award is made the responses are not made public. The State will notify the unsuccessful responders in writing that their responses have not been accepted.

6 RM SERVICES RFP PRIMARY CONTACT PERSON AND INQUIRIES

1 Inquires about this RFP are preferred in written form, via e-mail, to the primary contact Gloria O’Connell Sonnen, gloria.sonnen@state.mn.us, (651) 297-2954. A copy of inquiries must also be sent to Joe Teff, jteff@scl.doc.state.mn.us, (320) 240-3053.

2 In the interest of fairness, all questions and responses to questions will be distributed via email to the designated contacts for all prospective providers who have indicated intent to submit a response. The identity of companies who submitted questions will be kept confidential. All questions must be received on or before August 23, 2005. Responses to all questions will be issued to all providers by Department of Administration on or before August 30, 2005.

RM SERVICES SPECIAL TERMS, CONDITIONS, AND SPECIFICATIONS

1 RM SERVICES RFP PURPOSE AND OBJECTIVES

1 The purpose of the MCF-SCL’s Resource Management (RM) Services Request for Proposal (RFP) is to obtain the expert resource management services of a Contractor to plan, manage and coordinate non-hazardous solid waste services and provide cost effective and resource efficient solid waste prevention, reduction, recycling, recovery, and as last resort, disposal of solid waste for the MCF-SCL. The successful Contractor will be the driving force behind optimizing resource and cost efficiencies while working in partnership with MCF-SCL personnel and possibly offenders to meet the purposes and objectives of the RM services program. A financial incentive will be built-in the RM services contract to incentivize both the Contractor and the MCF-SCL to continuously seek and implement cost and resource efficient program improvement, including the development, design, innovation and implementation of efficiencies.

2 The MCF-SCL is seeking a contractor that can achieve competitive pricing on waste and resource management services to its facilities. The MCF-SCL recognizes that any contractor will provide on-site services for whatever level of services the buyer chooses to purchase. The MCF-SCL also recognizes that the typical approach in the marketplace to providing these services is to charge a management fee in addition to the cost of hauling and disposal. This is not the type of approach the MCF-SCL desires. Rather, the MCF-SCL is prepared to make an extraordinary commitment to the right partner to develop a compensation base that is tied directly to contractor performance allowing the contractor to share in the savings achieved under this program. A portion of the savings will be used to reward the contractor for bringing technical expertise, process discipline, best industry practices, new technologies, metrics, and industry talent to implement a successful RM program.

4 Within the first two months of the Contract, the Contractor and the MCF-SCL will establish a mutually agreed upon baseline. This baseline will serve as the current level from which diversion levels and cost savings will be measured. From the baseline, the Contractor can share in savings recovered through waste minimization activities that occur at any point in a materials life cycle from purchasing, delivery and storage to use, reuse, recycling and disposal. Resource efficiency improvements will yield savings from areas including, but not limited to, avoided hauling costs, avoided disposal costs, commodity revenue, or other cost savings the Contractor can document.

5 Program planning, improvements, and incentives will be data driven and as such will require transparency in costs and metrics including, but not limited to, cost and measures associated with collection, transportation, processing, marketing, market value indexing, invoicing, billing, and manifesting for recyclable materials and solid wastes, as well as cost and metrics for waste prevented, reused, and reduced.

2 SCOPE OF WASTE AND RESOURCE TYPES

1 The scope of waste and resource types, which may be included in the RM services response and subsequent contract, includes all non-hazardous solid wastes, recyclables, and materials in the waste generator’s (MCF-SCL) supply chain. The following hierarchy should be followed in the coordination and management of MCF-SCL's waste and resource types:

1 Prevent/Reduce

2 Reuse/Return

4 Recycle/Compost

6 Burn for Energy Recovery

8 Land Disposal

2 It is the goal of the RM program to move waste up the hierarchy and therefore decrease quantities of waste currently land disposed in each year of the contract. There are to be no volume guarantees on behalf of the MCF-SCL. The objective of the program is to decrease the amount of waste sent to the landfill and increase waste prevention, reduction, reuse, recycling and recovery for composting and energy recovery.

3 State “must use” contracts, which are not included in the immediate scope of work, yet may be included in the future, are currently applicable to the RM services program as follows:

2 The MCF-SCL, as a State agency, uses specific contractors for services that the State has negotiated and acquired “must use” contracts. Regardless of “must use” contracts, the successful candidate can provide for and/or manage the full scope of services requested by the MCF-SCL and assume responsibility for coordination of “must use” contractor’s work, control of the quality and cost, ensuring compliance with all federal, state and local regulations and ordinances, and fulfillment of schedules. For example, the MCF-SCL’s confidential paper shredding contractor is a State “must use” contract. The RM Contractor can suggest cost and waste savings measures and the MCF-SCL may implement those measures while it continues to use the State’s “must use” contractor for confidential paper that must be shred. Additionally, if sufficient information exists to justify an exception to a ‘must use’ contract, a formal request for an exception may be made to the contract’s Acquisition Management Specialist and may be granted by the same. Lastly, the RM Contractor may subcontract with the State’s must use contractor or pursue a joint venture with the “must use” contractor (Section L).

3 A list of “must use” contractors is available from the Materials Management Division of the Minnesota Department of Administration. The three “must use” contracts at the MCF-SCL relevant to this RFP are: 1) confidential paper shredding; 2) a management of food waste for garbage fed livestock; and 3) destruction of confidential non-paper documents. These three contract service levels are noted in Appendix B, and a copy of each contract release is provided in Appendix D.

3 KEY DATES TO MEET RM SERVICES OBJECTIVES

1 The RM service provider shall be prepared to meet the MCF-SCL’s following RM service objectives:

1 On November 1, 2005 assume solid waste collection, transportation and disposal service.

3 On November 1, 2005 assume collection, transportation, processing, and marketing of recyclables.

5 Between November 1, 2005 and December 31, 2005 become familiar with MCF-SCL programs, systems and staff and determine baseline existing service levels and costs from which future program improvements shall be measured.

7 Between November 1, 2005 and December 31, 2005 develop and prioritize an action plan including narrative goals, numeric targets, outcome measurement and evaluation for the cost and resource efficient program improvements.

9 Between November 1, 2005 and December 31, 2005 work closely with MCF-SCL personnel to finalize the action plan for implementation of cost and resource efficient program improvements.

11 On January 1, 2006 begin implementation of the action plan to implement cost and resource efficient program improvements.

12 On January 1, 2006 begin to measure and validate costs and resource savings resulting from implementation of the action plan.

14 On May 1, 2006 provide first quarterly report for the time period January 1, 2006 through March 31, 2006 which will include, but not be limited to, a narrative and numeric report and evaluation of first quarter action plan activities, costs and savings, and an action plan that sets program implementation activities and costs and resource savings goals and numeric targets for the next quarter.

16 For each quarter subsequent to the first quarter, provide within thirty (30) days of the end of the previous quarter a narrative and numeric report and evaluation of that quarter’s action plan activities, costs and savings, and an action plan that sets program implementation activities, costs and resource savings goals, and numeric targets for the current quarter.

4 TRANSPARENT BILLING REQUIREMENT

1 The Contractor shall provide itemized monthly billing statements to the MCF-SCL with explicitly identifiable and separate charges for type of service (i.e. recycling, processing, disposal), unit cost or unit value, and total cost or total value, taxes and fees, including dates, sources and destinations for the service including collection, transportation, secondary material processing, delivery to resource recovery, and delivery to land disposal.

5 WASTE COLLECTION AND DEPOSIT MANIFEST REQUIRED

1 The Contractor shall provide for a manifest system such that all recycling and solid waste collections and respective destinations are documented. Each time the Contractor picks up the containers at the facility, the Contractor shall fill out duplicate copies of a manifest indicating the unit or material, unit size, number of units picked up and date of collection. For recyclables or waste collected inside the secure area of the facility, the Contractor shall keep one copy of the manifest and give the duplicate copy to the MCF-SCL escort officer or leave it at the truck gate. For recyclables or waste collected outside the secure area of the facility, the Contractor shall leave the one copy of the manifest at the recycling shed or receipt box. For waste materials picked up at the power plant, the Contractor shall leave one copy of the manifest in the receipt box. The manifest shall be supplied by the Contractor, and shall be in a format mutually agreed to by the MCF-SCL and the Contractor. A copy of each manifest shall be submitted with the billing invoice for the appropriate month.

RM SERVICES RESPONSE ITEMS

1 COMPLETE RESPONSES REQUIRED

1 Complete responses shall include the general, operational, and financial responses specified in this RFP. The order of the response shall be in the same order as the response items listed in IV.B through IV.E, or the response may be rejected, or receive less points solely at the option of the State.

3 RM SERVICES QUALIFICATION RESPONSE ITEMS

1 The MCF-SCL recognizes the providing RM service is a new way of doing business for Minnesota waste service suppliers. Therefore, please respond as well as you can to the following qualification response items that measure your experience with RM services:

2 Describe your vision of an RM program for the MCF-SCL facility.

4 List three of your current major customers and specify the services you provide these customers that are comparable to the MCF-SCL’s RM service requirements and how your experience with them demonstrates your ability to provide RM services for the MCF-SCL facility. For each customer named, specify: I) number of years as a customer; II) contact names and phone numbers; III) general type of business of customer; IV) the services your company provides; and V) relevant metrics of success.

6 Identify your specific project personnel or teams that will be devoted to a MCF-SCL RM program. Include how staff devoted to the MCF-SCL’s RM program will interact or utilize overall company resources and expertise. Include training your staff has or will receive or corporate resource networks that will benefit the MCF-SCL RM program.

8 Employee stability is essential to the programs success. What does your company do to maintain a stable workforce?

10 List the company names and contact information of all of those with whom you are entering into a joint venture for this Contract.

12 Discuss the relationship that you plan to establish with the MCF-SCL. Include in your discussion the relationships you propose to establish with MCF-SCL management, staff, and offenders.

14 It is anticipated that education and outreach will play an important role in a successful RM program; therefore, describe how you intend to interact and educate relevant management, staff, offenders, etc.

16 Describe your experience with planning, managing and coordinating non-hazardous solid waste services and providing cost effective and resource efficient solid waste prevention, reduction, recycling, recovery, and as last resort, disposal of solid waste.

18 Describe your experience with being the driving force behind optimizing resource and cost efficiencies in partnership with customers

20 Describe your experience with creating and building in mutual financial incentives to customer contracts.

22 Describe your experience with establishing baseline metrics, methodology, outcome measurement and evaluation.

24 Describe your experience with continuously seeking and implementing cost and resource efficient program improvements, including development, design, innovation and implementation of efficiencies including, but not limited to improving existing recycling programs as well as identifying new programs to reduce, reuse, and recycle waste from the MCF-SCL.

4 ENVIRONMENT AND SAFETY RM SERVICES RESPONSE ITEMS

1 Describe environmental and safety programs that apply to managing risks associated with the primary Contractor function.

3 Discuss the regulatory expertise of your staff that will be assigned to the MCF-SCL’s RM program including training and certifications.

5 Describe how you intend to manage the risk associated with the collection, transportation, and disposal of non-hazardous solid waste resources.

7 Identify resource recovery and land disposal site(s) you use by name and location and described how you protect customers from liability for any harm to natural and human health that may be linked to your use of these site(s).

9 Provide a list of solid waste and recycling licenses and permits you hold, from whom they are issued, and expiration or renewal dates.

5 RM SERVICES OPERATIONS PLAN

1 Prepare a preliminary operation plan for a RM Services Program for the MCF-SCL that addresses the key dates and resource management objectives in III.C, including the following:

1 How you will meet the billing requirement in Section III.D, including the billing management tools or software programs you intend to use.

3 How you will meet the manifest requirement in III.E, including manifest management tools or software programs you intend to use.

4 Identify opportunities to prevent, reuse, and reduce waste such as reusing or returning purchased materials or transport packaging.

5 Identify opportunities to recycle paper, cardboard, beverage containers, steel, tin, aluminum, plastics and organic cafeteria waste, etc. and explain how you propose to implement and monitor recycling activities such as how and where recycled resources will be collected, stored, transported, processed, and marketed.

6 How will existing disposal service levels change as waste prevention and recycling increases (from an operational and financial standpoint)?

7 What performance metrics will you employ and your procedures for formally, both internally and with the MCF-SCL, reviewing, assessing, and communicating your performance?

9 How will you establish a baseline, determining waste and commodity types, quantities, costs and/or value, against which service level, commodity value and savings will be measured?

11 How will you measure cost savings and diversion levels from the baseline including the methodology you will used to determine commodity value?

12 How will you validate cost savings and increased diversion levels?

14 How will you ensure management by data, proactive communication, and attention to the RM program, with quarterly progress reports and what you intend to include in quarterly progress reports to the MCF-SCL?

6 RM SERVICES BASE FINANCIAL RESPONSE

1 Prepare your solid waste disposal and recycling commodity services quote for contract year 2006 by following the instructions and using the response forms provided in Appendix C.

7 PRELIMINARY WASTE REDUCTION Bonus FINANCIAL RESPONSE

1 The Responder must propose, in Table 3 of Appendix C, a preliminary waste reduction bonus scenario such that as solid waste is eliminated, prevented, or reduced, the resulting cost savings that are measured, documented and reported to MCF-SCL are shared with the Responder. The MCF-SCL believes the shared waste reduction bonus will provide both the Responder and MCF-SCL an incentive to reduce waste and conserve resources.

3 The existing levels of service in Appendix B should be used as a preliminary baseline. The actual baseline from which waste reduction and cost savings will be measured will be established within the first two months of the RM Contract, as described in Section III.A.3 and III.C.1.c.

4 Waste reduction activities will yield savings from areas including, but not limited to, avoided hauling costs, avoided disposal costs, avoided taxes, or other cost savings the Contractor can document.

8 RM SERVICES ALTERNATE FINANCIAL RESPONSE

1 Alternate gain sharing and incentivized responses reflecting this solicitation are encouraged in addition to, not in lieu of, a fully responsive base financial response. Submit any alternate responses on a separate sheet(s) of paper.

3 For example purposes only, alternate financial gain sharing and incentivized responses with mutually agreed upon performance targets may include, but not be limited to:

1 A contractor could propose a fixed monthly cost and guarantee certain reduction in costs and increased diversion over the 3- year contract. The fixed cost must include all waste, recycling, and RM services and be tied to current waste generation levels (e.g. lb of waste per offender); or

3 A contractor could establish performance targets tied to diversion levels and suggest gain sharing splits between the MCF-SCL and their company.

4 An alternative response must include only the differences from the base response. A statement to the effect that any aspect of the base response not otherwise expressly modified and set forth in the alternative response should be included.

9 JOINT VENTURES/SUBCONTRACTING

1 List here the company names of all of those with whom you are entering into a joint venture for this Contract: (if required, attach additional sheets to the response):

1 ____________________________________________________

2 ____________________________________________________

3 ____________________________________________________

APPENDIX A: Acknowledgment of Receipt and Intent to Propose

Please e-mail to gloria.sonnen@state.mn.us and jteff@scl.doc.state.mn.us or fax to Gloria O’Connell Sonnen (651) 297-3996 and to Joe Teff at (320) 240-7036, this notification of receipt and intent on or before August 11, 2005. The Pre-Proposal meeting will be held on August 2nd, 2005 at 10:30 am at the Minnesota Correctional Facility-St. Cloud, 2305 Minnesota BLVD S.E., St. Cloud, MN 56304, in the HR building in the West Parking Lot. Map to the facility is located on the DOC website at: . (Facility is off of US HWY 10, one mile south of St. Cloud).

Acknowledgment of Receipt:

Hereby Acknowledges Receipt of RFP packet (Name of Company)

____________________________ Print Name

____________________________ Authorized Signature

____________________________ Title

____________________________ Date

| |I will attend the Pre-Proposal meeting and intend to submit a Response (please fill in Part B) |

| | |

| |I do not intend to attend the Pre-Proposal meeting but intend to submit a Response |

| | |

| |I intend to submit an additional (in addition to the required sealed paper response) electronic copy of the response via email |

Representatives Attending the Pre-Proposal Meeting:

This list of attendees must be faxed or emailed to Joe Teff as listed above by August 11, 2005. Those attending the pre-proposal meeting will need to provide a picture ID to enter the facility for the tour.

Name and Contacts of Representative(s):

1. _____________________________________________________________________ (Name)

_____________________________________________________________________

(Title)

(Company Name)

____________________________________________________________________

Tel. No. E-Mail

2. _____________________________________________________________________ (Name)

_____________________________________________________________________

(Title)

(Company Name)

____________________________________________________________________

Tel. No. E-Mail

3. _____________________________________________________________________ (Name)

_____________________________________________________________________

(Title)

(Company Name)

_____________________________________________________________________

Tel. No. E-Mail

APPENDIX B: EXISTING LEVELS OF SERVICE

Table 1: MFC-SCL Solid Waste and Recycling Service Levels (2005)

|LOCATION |SERVICE LEVEL |

| |Dumpster Size (yards) |Hauls/Year |Est. Annual Tons1 |

|Warehouse Dock |40 (Compactor)2 |26 |260 |

| |8 |12 |12 |

|Power Plant | | | |

| |

|COMMODITY |RECYCLING SERVICE |

| |Pickup Load |2 |1 |

|Aluminum | | | |

| |Baled2 (~1200 lbs. or 30"W X |24 |47 |

|Corrugated |58"Length X 40"H | | |

| |4 Yard Dumpster |6 |10.5 |

|Mixed Paper | | | |

| |200 Pound Containers |144 |240 |

|Organic (Food)3 | | | |

| |6-90 Gallon Carts |12 |1 |

|Plastic (PET) | | | |

| |30 Yard Dumpster | | |

|Steel/Tin | |3 | |

| |

|COMMODITY |SECURITY SERVICE |

| |37 Containers (~30 Gallon) |24 |13.5 |

|Confidential Paper3 | | | |

1These figures are estimated based upon actual records for a 12-month period, from June 2004 to June 2005.

2The 40-yard compactor and corrugated baler are owned by MCF-SCL.

3Three ‘must use’ contract releases (see Section 3.3 and Appendix D) at MCF-SCL include: a confidential paper-shredding contract, a management of food waste for garbage fed livestock contract, and a destruction of confidential non-paper documents contract. The confidential paper shredding contract period ends October 31, 2005 and has a twelve-month extension option. The management of food waste for garbage fed livestock contract ends on October 31st, 2006 and has a 36-month extension option. MCF-SCL has installed organic waste composting tubs and intends to divert food waste from the garbage fed livestock to on-site composting tubs. The destruction of confidential non-paper documents contract ends August 31st, 2006 and has a 36- month extension option.

APPENDIX C: Base Financial Response Forms

Please provide your waste and recycling prices for contract year 2006, in Table 1 and Table 2, respectively. Year 2006 shall begin November 1, 2005 and end October 31, 2006. Base your 2006 price estimates on the existing service levels provided in Appendix B. Use additional blank pages as needed to document any expected rate changes in subsequent contract years and detailed information about any expected additional costs and fees associated with the proposed service.

TABLE 1: YEAR 2006 WASTE DISPOSAL RESPONSE FORM

|Collection Location |Container |Collections/Year |Price/ Collection |Total Collection |Tons per |Average Tip Fee/ |Total Tipping |

| |Size | | |Price/Year |Year |Ton1 |Price/Year |

|Warehouse Dock |40 yd3 | | |$ | | |$ |

| |Compactor | | | | |$ | |

| | | | |$ | |$ |$ |

|Power Plant2 | | | | | | | |

| |

| |$ |

|Estimated 2006 Waste Collection Cost | |

| |$ |

|Estimated 2006 Tip Fee Cost | |

| |$ |

|Estimated 2006 Waste Collection and Tip Fee Cost | |

1Average tip fee per ton should be an average of the tip fees paid by the Contractor to those facilities used by the Responder.

2Transparent quotes (unbundled pricing for collection and tipping) for the dumpster located at the power plant is preferred. If you are unable to separate the prices, please note that in your response.

TABLE 2: YEAR 2006 RECYCLING COMMODITY RESPONSE FORM

| |Unit Size |No. of Units/ |Transport and |Recycling Revenue Share |Source and Date for Calculating |

| |(Tons) |Year |Processing Fee/Ton1 |Paid to MCF-SCL2 |Value/Ton3 |

|Baled | | |$ |% | |

|Corrugated Cardboard| | | | | |

|Mixed Paper | | |$ |% | |

|Including Newspaper | | | | | |

| | | |$ |% | |

|Plastic | | | | | |

| | | |$ |% | |

|Aluminum | | | | | |

| | | |$ |% | |

|Tin | | | | | |

| | | |$ |% | |

|Steel | | | | | |

| |$ |

|Total Year 2006 Estimated Recycling Value | |

1To include transportation, handling, and processing.

1 & 2 The MCF-SCL is interested in a response that shares recyclable commodity risk and reward. The MCF-SCL will allow the Contractor to charge the MCF-SCL a fee for transportation and processing of recyclable commodities. The Contractor shall validate the amount of the transportation and processing fee.

In the event that the Contractor’s monthly revenue from the sale of a recyclable commodity exceeds the fee, the amount of revenue in excess of the fee shall be shared with MCF-SCL. In the event that the Contractor’s monthly revenue from the sale of a recyclable commodity does not exceed the fee, MCF-SCL will pay the fee and there shall be no gain-sharing split for that month.

By the 15th day of each month, the Contractor shall calculate, report and pay to the MCF-SCL the revenue share for the previous month that exceeds the Contractor’s fee for that month.

3 For example: Actual Average Monthly Market Price Received for the commodity.

TABLE 3: YEAR 2006 WASTE REDUCTION BONUS

The MCF-SCL intends to share documented savings that come from waste reduction improvements including, but not limited to avoided hauling cost, avoided disposal cost, avoided purchasing, and other improvements found in the supply chain.

The Responder must propose a preliminary waste reduction bonus scenario such that as solid waste is eliminated, prevented, or reduced, the resulting cost savings that are measured, documented and reported to MCF-SCL are shared with the Responder. The MCF-SCL believes the shared waste reduction bonus will provide both the Responder and MCF-SCL an incentive to reduce waste and conserve resources all along a materials life cycle supply chain.

The responder may use the existing levels of service provided in Appendix B as the preliminary baseline from which savings could be measured. The actual baseline from which waste reduction and cost savings will be measured will be established within the first two months of the RM Contract, as described in Section III.A.3 and III.C.1.c.

| |MCF-SCL’s Share |Contractor’s Share |

|Preliminary Waste Reduction |% |% |

|Bonus | | |

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