Scrap Metal Recycling Pick Up Services IFB#25-20080-000

The Department of State Hospitals Metropolitan, a California state agency, is issuing Invitation for Bid (IFB) #25-20080-000 to procure scrap metal recycling pickup and related services across six DSH facility locations: Atascadero, Coalinga, Metropolitan (Norwalk), Patton, Sacramento, and Napa. The selected contractor shall provide all necessary labor, materials, supplies, tools, equipment, transportation, licenses, certifications, permits, insurance, and personnel to collect scrap metal from DSH facilities and divert these materials from landfill disposal in compliance with applicable regulations. Key service requirements include responding to pickup requests within two business days, maintaining a minimum of one 15-cubic yard container on-site at all times with additional 40-cubic yard containers available as needed, and utilizing only California-based recycling facilities. The contractor must obtain a California Motor Carrier Permit, provide three customer references from services delivered within the past two years, submit business licensing documentation, and demonstrate proof of required insurance coverage including Commercial General Liability ($1,000,000 per occurrence/$2,000,000 aggregate), Pollution Liability ($1,000,000 per claim/$2,000,000 aggregate), Motor Vehicle Liability ($1,000,000 per accident), and Professional Liability ($1,000,000 per claim/$2,000,000 aggregate), with the State of California named as additional insured. Bid evaluation will be based on the highest percentage bid, with the contractor's reimbursement to DSH calculated as a percentage of scrap metal sale proceeds, with monthly pricing determined using American Metal Market (Fastmarkets) pricing for #2 Bundles of Ferrous Scrap at the Port of Los Angeles. A mandatory bidder's conference is scheduled for February 11, 2026, at 2:00 p.m. at DSH-Metropolitan in Norwalk, California, with attendance required for bids to be considered responsive. The final bid submission deadline is February 25, 2026, at 2:00 p.m., followed by public bid opening at 2:30 p.m. The anticipated contract term is March 6, 2026, through February 29, 2028, with no renewal options specified.

This procurement features a revenue-sharing agreement structure with no budgeted state funds; the contractor shall reimburse DSH a percentage of scrap metal sale proceeds as bid, retaining the remaining amount to cover operational costs and profit. A 5% Small Business preference and a Disabled Veteran Business Enterprise (DVBE) incentive (1-5% depending on participation level) are available to eligible organizations, allowing qualified small businesses and disabled veteran-owned enterprises competitive advantages in the bidding process. Subcontractors are not permitted for this agreement, meaning the selected contractor must perform all work directly. No incumbent vendors or current contractors are identified in the solicitation materials. The bid does not establish a specific award value or budget ceiling; instead, the contract's financial structure depends entirely on the percentage of scrap metal proceeds that the winning bidder commits to remit to DSH, making this a self-sustaining arrangement where the contractor's profitability is directly tied to the volume and market value of recovered scrap materials and the efficiency of operations across the six state hospital locations.