Takas: Right Away Disposal offers a better deal than Republic Services

Right Away Disposal appreciates the opportunity to bid on the Town of Paradise Valley’s RFP for a single-hauler for trash and recycling services. We also understand the importance of this decision and how it will affect the many residents of the Town of Paradise Valley for years to come.

Jeremy Takas

As Arizona’s largest privately-owned trash company, hosting a fleet of 200 collection vehicles, two solid-waste transfer stations, a recyclable material sorting facility, a Subtitle D Landfill, over 275 employees and servicing over 160,000 single family homes in the Phoenix metropolitan area and Tucson, RAD is significantly qualified to handle the service dynamics of the community.

The purpose of this letter is to ensure Paradise Valley Town Council members are provided with comparison facts about the responses to the RFP prior to deciding on a single-hauler.

There are three items that we believe need further clarification for council members to make a decision based on equal opportunity for RAD. We also feel you should be well-informed in the event these questions arise from inquisitive constituents.

  • During the May 11, 2017 council meeting, Councilman David Sherf and others were adamant about supporting a three (3) or possible five (5) year contract term. This was also the direction of the RFP. The “negotiated” contract with Republic Services is for seven (7) years, with a possibility of three (3) one (1) year extensions, a total of ten (10) years. RAD did not have an opportunity to bid on a seven (7) year agreement with the possibility of three (3) one (1) year extensions. This would have made a dramatic difference with RAD’s price per unit.
  • On page 17, SECTION 7 of the RFP, it states that the top proposer may be invited to be interviewed by the selection committee, and/or asked to present their proposals in person. Scoring is based on 1,000 points including General Information 100 pts, Experience and Qualifications 200 pts, Method of Approach 300 pts. Billing, Customer Service, and Public Education 100 pts, Cost Information 300 pts. Based on a review of the Dec. 7, 2017 council meeting, work and study session, the results of this tabulation were never provided to the town council. Furthermore, RAD was never provided with a summary of their own scoring or for the other respondents. As the low price fully qualified proposer, RAD didn’t receive an interview to provide further explanation to staff on the areas we scored lower on.
  • As publicly displayed by several council members, including Paul Dembow, Scott Moore, and Julie Pace in the May 11, 2017 council meeting, and again in the Dec. 7, 2017 council meeting, price per unit was a major point of concern. Staff provided a range of prices reflective of a three (3) year pricing submittal. Staff did not provide RAD’s five (5) year pricing, which was even lower than the negotiated contract pricing, nor did staff allow RAD to quote a seven (7) year agreement with three (3) one (1) year options.

Below is a chart that compares the pricing between RAD and Republic based on RAD’s five (5) year rates versus Republic’s potential 10-year rates for 5,500 single family homes in Paradise Valley:

A price comparison provided by Right Away Disposal that represents a cost savings from the already in motion Republic Services contract at the Town of Paradise Valley. (Submitted graphic)

It is important to point out that the chart only represents our five (5) year pricing model as we were not given an opportunity to bid on a seven (7) year term with three (3) one (1) year options. Lower rates traditionally follow long-term contracts.

It’s also noteworthy this chart does not provide Republic Service’s traditional fuel, environmental, administrative and delivery fees or any of the other miscellaneous charges provided through the RFP. RAD has a proud history of “All In” pricing with no additional fees and taxes. We believe it is in the best interest of Paradise Valley residents for town council to consider these facts prior to proceeding with a contract that will cost residents over $1,853,823.19 than RAD’s offer over a ten (10) year period, which is reflected above.

We would like to have an opportunity to present our proposal to members of the selection committee, the town staff, the town council, and the residents of Paradise Valley. We are convinced the Paradise Valley Town Council is a forum that listens to its residents and responds to the greater needs they have for their affluent lifestyles.

We look further to extending this dialog, which will truly benefit the Town of Paradise Valley residents.

Editor’s note: Mr. Takas is president of Right Away Disposal or RAD

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