Price_Page_RFP_260106.pdf
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- Solicitation number
- 260106
- Issued by
- Pima County, Tucson City, Arizona
About this file
This is a Cost Proposal Form for the City of Tucson's Material Recovery Facility (MRF) processing and marketing of recyclable materials contract. The City of Tucson Environmental Services Department is soliciting proposals for processing approximately 23,577 tons of recyclable materials annually collected through its Single Stream Recycling Program, Neighborhood Recycling Centers, and commercial recycling programs. Proposers must select between two scenarios: Scenario 1 involves a city-owned or public-private partnership MRF at the Los Reales Landfill, and Scenario 2 involves a contractor-owned and operated facility. The contract will commence July 1, 2027, and run for 15 years through June 30, 2042, with options to renew for up to five additional one-year periods. The proposal due date is January 15, 2026, at 2:00 PM Arizona time, with a pre-submittal meeting scheduled for December 10, 2025. The procurement requires contractors to capture a minimum of 95% of recyclable materials with residuals not exceeding 5% per working day and to market the recovered materials.
The pricing structure comprises two primary components: Processing Fee-Operating Costs (per ton) and Processing Fee-Capital Costs (per ton), with capital costs receiving no annual rate adjustments. Proposers must submit cost estimates for site and building development and processing equipment separately from operating costs. The City will pay the lower of the proposed processing fee or any lower processing fee negotiated with other customers of the proposed MRF. Contractors must provide a revenue share percentage of Net Revenues, calculated as Gross Recyclable Revenue minus the Processing Fee, with specified pricing bases for required materials including fiber, plastic, metal, and glass using Secondary Materials Pricing indices for the Houston (Southcentral) region or Average Monthly Actual Sales Prices. A $5.00 per ton host fee applies to non-City tons accepted at the facility. The form requires proposers to describe initial annual tonnage and anticipated growth over the contract term, identify any financial incentives pursued, and provide initial capital cost estimates for site, building, and processing equipment. Material revenue bases are indexed to Secondary Materials Pricing high-side rates for fiber and plastic categories, with specific provisions for commingled containers using low-side pricing.
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Text version
Form X: Cost Proposal Form
Offeror Name:
Option Proposed Please select one of the options below based on the Proposal being submitted. If Offeror wishes to propose on both options, two separate Proposals must be submitted.
Scenario 1 – City Property
Scenario 2 – Offeror Property
Cost Proposal Processing Fee – Operating Costs (A): This component of the processing fee is intended to recover ongoing operating costs such as personnel costs, utilities, maintenance, rolling stock operating and capital, transportation, fuel, marketing, and other similar costs.
Processing Fee – Capital Costs (B): This component of the processing fee is intended to recover facility and processing capital costs, such as site development, building construction, and processing equipment.
As noted in the RFP, escalation will not be applied to this component of the processing fee.
Total Processing Fee (A+B): The sum of the Operating Costs and Capital Costs components of the processing fee. The Total Processing Fee paid by the City shall always be the lowest fee paid by a customer of the proposed MRF. Should another customer negotiate a lower processing fee, the fee paid by the City shall be lowered to match it.
Please complete each of the following items as part of the cost proposal.
Processing Fee – Operating Costs (A) $
Per ton
Processing Fee – Capital Costs (B) $
Total Processing Fee (A+B) $
Revenue Share* % of Net Revenue
Host Fee for Non-City Tons Accepted $ 5.00 Per ton
*The calculation for the recyclable revenue share shall be as follows:
1. Net Revenues = Gross Recyclable Revenue from sale of City Materials - Processing Fee accrued by City
2. City Recyclable Revenues = Net Revenues x Proposed Recyclable Revenue Share to City (%)
If Net Revenue is less than zero dollars ($0), the City will pay the Net Revenue Amount. In the calculation of the invoice amount or payment due to the City, the Total Processing Fee shall be subtracted from the 100% of the value of the commodities delivered to the recycling facility, , and the revenue share percentage is applied only to the difference between average commodity dollar value per ton and the Total Processing
Fee per ton when the value exceeds the Total Processing Fee. The City will not pay the awarded Contractor any costs other than the Total Processing Fee per ton remaining after the value of the commodities is subtracted.
Further, to the extent the MRF accepts non-City tons, the Contractor owes the City the $5.00 per ton host fee; the dollar amount shall be deducted from the amount the City owes Contractor in months that Net Revenue is less than zero dollars and shall be added to the amount the Contractor owes City in months that Net Revenue is more than zero dollars.
Capital Cost Capital costs will not be subject to the annual rate adjustment. For purposes of this RFP, capital costs are defined as the cost related to (1) the site and building and (2) the processing equipment. While the capital component of the processing fee must be provided on Page 1 of this form, please include the estimated total for the site and building cost and the processing equipment cost below. Rolling stock should be factored into the operating cost component of the processing fee.
Site and Building Cost Estimate:
Processing Equipment Cost Estimate:
Facility Tonnage Assumptions
Please describe the initial annual tonnage anticipated to be processed at the MRF and how the tonnage is anticipated to grow over the term of the agreement.
Financial Incentives
If the Proposer intends to pursue any financial incentives (e.g., grants), please provide a description of how the Cost Proposal will be impacted if those financial incentives are realized.
Additional Notes Please provide any additional information that the Offeror believes the City should take into consideration as part of the financial proposal.
Required Material and Revenue Basis
The information in the following table shall be utilized for calculating the Gross Recyclable Revenue from City Material
Recyclable Materials Revenue Basis Fiber
Newspaper The greater of Secondary Materials Pricing, PS 56, high-side, Houston (Southcentral) region, (average) or Average Monthly Actual Sales Price
Old Corrugated Cardboard, Fiberboard, Kraft Paper
The greater of Secondary Materials Pricing, PS 11, high-side, Houston (Southcentral) region, (average) or Average Monthly Actual Sales Price
Mixed Paper The greater of Secondary Materials Pricing, PS 54, high-side, Houston (Southcentral) region, (average) or Average Monthly Actual Sales Price
Aseptic Packaging and Gable Top Cartons The greater of Secondary Materials Pricing, PS 52, high-side, Houston (Southcentral) region, (average) or Average Monthly Actual Sales Price
Plastic
PET #1 The greater of Secondary Materials Pricing, Plastics PET, high-side, Houston (Southcentral) region, (average) or Average Monthly Actual Sales Price
HDPE #2 Natural The greater of Secondary Materials Pricing, Plastics Natural HDPE, high-side, Houston (Southcentral) region, (average) or Average Monthly Actual Sales Price
HDPE #2 Colored The greater of Secondary Materials Pricing, Plastics Colored HDPE, high-side, Houston (Southcentral) region, (average) or Average Monthly Actual Sales Price
PP #5 The greater of Secondary Materials Pricing, Plastics PP Post Consumer, high-side, Houston (Southcentral) region, (average) or Average Monthly Actual Sales Price
Commingled #3-7 Containers (excluding #5) The greater of Secondary Materials Pricing, Plastics Commingled #3-7, low-side, Houston (Southcentral) region, (average) or Average Monthly Actual Sales Price
Mixed Bulky Rigid Plastic The greater of Secondary Materials Pricing, Plastics Mixed Bulky Rigids, regional average, Houston (Southcentral) region, (average) or Average Monthly Actual Sales Price
Metal Aluminum cans The greater of Secondary Materials Pricing, Metals Aluminum cans, sorted and baled, high-side, Houston (Southcentral) region, (average) or Average Monthly Actual Sales Price
Steel/Tin cans The greater of Secondary Materials Pricing, Metals Steel cans, sorted and baled, high-side, Houston (Southcentral) region, (average) or Average Monthly Actual Sales Price
Scrap Metal Average Monthly Actual Sales Price Other Glass Average Monthly Actual Sales Price
Additional Proposed Materials and Revenue Basis
For any additional material being proposed, not already included in the Required Materials table, please include a description of the material and the basis for determining revenue.
Recyclable Materials Revenue Basis
| Capital Cost |
| Facility Tonnage Assumptions |
| Financial Incentives |
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