Title
Scrap Metal Recycling Contract IFB 24-SW-036 - Request for Award (Ordinance S-50797)
Description
Request to authorize the City Manager, or his designee, to enter into contracts with Rush Auto Recyclers, Inc., dba We Buy Scrap and Southwest Metals, LLC, to provide scrap metal recycling services, as needed, for ferrous and non-ferrous metals citywide. The total estimated revenue over the life of the contract is $1,850,000, with an estimated annual revenue of $370,000. Further request to authorize the City Treasurer to accept all funds related to this item.
Report
Summary
This contract will provide scrap metal recycling services to include ferrous and non-ferrous metals such as sheet iron, aluminum, and brass. Consistent with the City's waste diversion and Climate Action Plan goals, this contract allows for the diversion of ferrous and non-ferrous metals from the landfill and repurposes these metals to contribute to a more sustainable future. Revenue generated from the sale of scrap metals will be used to offset operational expenses.
Procurement Information
An Invitation for Bid was processed in accordance with City of Phoenix Administrative Regulation 3.10. Two vendors submitted bids deemed responsive to posted specifications, and responsible to provide the required services. Revenue estimates were based on Fastmarkets and the iScrap Application. Following an evaluation based on percentage of index paid to the City of Phoenix, the procurement officer recommends award to the following vendors:
Percentage of Index Paid:
Sheet Iron = 80%
Unprepared Iron = 80%
Aluminum Mid = 80%
Aluminum High = 80%
Manhole Covers = 80%
Brass Water Meters = 80%
Percentage of Index Paid:
Sheet Iron = 201%
Unprepared Iron = 119%
Aluminum Mid = 51%
Aluminum High = 101%
Manhole Covers = 127%
Brass Water Meters = 91%
Contract Term
The contracts will begin on or about June 1, 2024, for an initial three-year term with two one-year options to extend.
Financial Impact
The estimated aggregate revenue is approximately $1,850,000 over the five-year term of the contracts. Actual revenue generation will fluctuate depending on market conditions and tonnage delivered.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Works Department.