Statement of Work - National Scrap v4.docx

Statement of Work (SOW) Attachment X Contract TBD National Recycling for Metal Scrap

Statement of Work National Recycling For Metal Scrap

UNITED STATES POSTAL SERVICE

National Recycling for Metal Scrap Statement of Work

Background

Currently, the United States Postal Service (USPS) disposes its metal scrap through local recyclers around the nation. Current metal scrap recycling activities are disparate, and the USPS intends to provide a centralized model to support the metal scrap needs at our plants and other facilities.

Program Scope

The supplier shall provide all management, supervision, labor, supplies, equipment and facilities necessary to ensure effective performance of all services described herein, which includes transportation, inventory management, recycling, supplier payment, disbursement of proceeds and reporting of Postal Service metal scrap.

Program Objective: Metal Scrap Recycling

USPS seeks to identify and establish a revenue share Agreement with a supplier to dispose of surplus and excess metal scrap.

Agreement Objectives

1. Establish the best commercial practices to dispose of surplus metal scrap.

2. Provide flexibility to adapt to contingencies that could impact metal characteristics, volumes, and types.

3. Establish an agreement with a supplier that has recycling capabilities and national exposure to brokers and facilitate metal recycling services.

4. Develop a payment system that works within USPS accounting structure.

5. Develop a flow of communication between the supplier and USPS regarding the status of recycling requests and completions.

6. Develop and implement procedures to ensure metal scrap is collected and disposed of in a timely manner. Ensure appropriate corrective action plan for any nonconformance of requirements.

7. Develop and implement reporting that can be accessed by USPS and capture required data on an agreed upon basis.

8. The supplier will be required to comply with any audits requested by the Office of Inspector General (OIG), Inspection Service and Program Office at no additional cost to the Postal Service.

The Postal Service will provide the supplier with 24- 48 hour notice prior to performing an on-site audit.

Management Objectives

1. The CO and/or the COR will hold meetings with the authorized supplier representatives to discuss issues and concerns, both contractual and technical. These meetings can be conducted via teleconference. Visits and audits must also be permissible at supplier and subcontractor facilities where applicable.

2. The USPS shall hold a supplier Performance Review on a quarterly basis to discuss any issues. These reviews can be held via teleconference. Reviews may be conducted more frequently, at the sole discretion of the USPS.

Program Management

1. Provide technical expertise relating to the recycling of metal scrap by assisting the USPS in modifying existing disposal practices to handle varying volumes of metal scrap while ensuring that decisions are made that optimize the recycling process in regards to transporting, preparation, and selling processes where possible for better asset return on investment (ROI), and impact revenue performance by capitalizing on market opportunities when presented.

2. Develop innovative recycling methods and opportunities to optimize the USPS commitment to generate revenue and maximize ROI.

3. Provide and maintain a database of Postal metal recycle volumes, with near real-time status updates of volumes for the duration of the agreement.

4. Develop processes that facilitate transparency, communication, and accountability for the metal scrap collection to final disposition.

5. Develop continuous improvement processes for the duration of the agreement streamlining the recycling process.

6. Subcontractors may be used to perform on behalf of the supplier(s). Subcontractor names shall be submitted to the USPS in accordance with Clause B-18 of the Ordering Agreement’s Terms and Conditions. The supplier shall remove non-performing subcontractors from the USPS project in a timely manner, and the supplier shall identify and report to the USPS the names of subcontractors replacing non-performing subcontractors. The supplier may have established partner/subcontractor facilities at multiple geographic locations for processing metal scrap recycling. The supplier will ensure the appropriate level of subcontractor management, coordination, communication and adherence to all agreements between supplier and the USPS.

7. Monitor the market to garner the best return on metal scrap.

Major Metal Types

The following is a list of metal types identified within the Postal Service, but is not all inclusive of commodities that may be recycled or disposed under the terms of this SOW.

Table 1: Metal Types Metal Types

Aluminum

Copper

Lead

Nickel

Tin

Steel / Stainless steel

Mixed Metals

Metal Scrap Pickup Request

The Postal Service will issue a pick-up order notification via call or email from the facility. The pickup order notification shall contain a suggested quantity ready for collection. The supplier shall pick up metal scrap from Postal facility within five (5) business days after receipt of the pick-up order notification. Metal scrap picked up may occur between 8:00 am and 3:00 pm, Monday through Friday, excluding holidays.

National Recycling Coordination

Supplier should provide an approach and strategy to reach the marketplace for metal scrap in metropolitan, suburban, underserved and rural communities. The Supplier is responsible for the coordination of all metal scrap recycling services nationwide.

a. Any coordination and partnering techniques will be performed at no additional cost to the Postal Service.

b. The supplier should communicate directly with those industry partners and subcontractors and monitor the efficiency of the national recycle program.

Transportation

The supplier shall provide services to pick up metal scrap from over 334 Postal Service facilities, along with storage of the metal scrap until their final disposition. The supplier or subcontractor must have an established facility which is primarily engaged in recycling services.

The supplier may use properly licensed auto carriers for transporting the metal scrap to Supplier location(s). Irrespective of the transport method chosen by the supplier in a particular instance, the Suppler shall ensure the person or entity performing the transport service has the appropriate levels of insurance, operating authority as required by the Interstate Commerce Commission (ICC) and is properly licensed under all applicable laws. Furthermore, the Postal Service reserves the right to deliver metal scrap directly to the supplier’s facility.

Security

The supplier shall provide adequate security based on industry’s best practices to prevent theft, conversion, damage, or property loss at all times during the program process of collection, transporting, selling and recycling.

a. The supplier shall not use any metal scrap, or permit its use by employees, subcontractors or other persons, except in furtherance of its obligations under the agreement.

b. The supplier must have or be capable of providing a secure area for the temporary storage of the metal scrap. Unauthorized access to the metal scrap will not be permitted at any time.

c. The supplier shall not file any criminal complaint with the authorities related to Postal property metal scrap under this agreement prior to giving the USPS written and oral notice that the property has been stolen, converted, is missing, or is otherwise unaccounted for; and shall complete such reports as requested by the Postal Service.

d. Supplier must certify that results of all scrapping/shredding/crushing procedures have eradicated all USPS identifiable markings such as decals, painting markings, embossing including:

· USPS Corporate Logo;

· Sonic Eagle;

· “United States Postal Service;”

· “U.S. Postal Service;”

· “USPS;”

· “We Deliver For You;”

· “www.usps.com;”

· Beltline stripes

Inventory Management

The Supplier shall have an inventory system which identifies and tracks the volumes received per Postal requesting facility. The inventory system should also be used to accurately document the status of pickups and processing status.

Metal Scrap Recycling

Provide services to effectively and efficiently recycle metal scrap by utilizing supplier expertise concerning recycling options. Recycling activities must adhere to the following:

a. Comply with all Federal, State, Local, environmental laws, regulations and provide the USPS with a list of suppliers and their addresses that will be accepting USPS materials for recycling.

b. USPS assets shall not be disposed of in a landfill wherever possible.

c. The supplier is to provide a recycling plan for USPS metal scrap that identifies the best means of recycling these materials.

d. Notify CO/COR immediately of environmental non-compliance of Federal, State, and Local environmental laws, regulations and requirements; including Postal policy, regulations and directives as attached to this SOW.

Collection of Recycle Sales Receipts

a. The supplier will be responsible for credit and proceeds collection matters relating to the recycling of Postal Service metal scrap.

b. Recycling partners and subcontractors may pay for the Postal Service owned metal scrap by any method acceptable to the supplier. Payments accepted by the supplier, which are later determined to be uncollectable (i.e., stop payment on check, insufficient funds, etc.) are the responsibility of the supplier, and for purposes of this agreement, are not considered as defaulted payments.

c. The Postal Service reserves the right to audit all recycled payment records related to the recycling of Postal Service metal scrap.

Supplier Payment

Supplier generated settlement reports that account for recycling related cost and revenue. The supplier will remit an accounting document showing both the full proceeds received of the assets recycled and the amount remitted to the USPS including deduction of agreed upon revenue share percentage of gross proceeds. Recycle revenue share percentage payment shall be made to the USPS within five (5) business days after payment is received from buyer, subcontractor, or recycle partners. Supplier payments to the USPS shall be made electronically by ACH Transfer.

Reporting

Suppliers will identify and generate reports that capture data and information from collection through recycling of metal scrap. The supplier shall maintain, through the life of this Ordering Agreement, sales and other pertinent records. The supplier shall make all such records and corresponding reports available for audit and inspection by the Postal Service at reasonable intervals, locations, and times, and can facilitate data retention policies imposed by the USPS, state, or regulating entities.

a. The supplier shall provide Headquarters Asset Management with status of the Postal Service metal scrap recycling activities on agree upon intervals. Reports may be made available electronically.

b. Each status report will list the specific Postal Facility, by name/city/state, and will include the following: date of collections, weights and metals collected, gross recycling proceeds, net amount to USPS

c. For months with no reportable items, a reporting indicating “No Activity” or “Nothing to Report” shall be submitted.

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