The RFP and RFQ Dilemma and Solution


RFQ_V2.jpgEvery year, many companies go through the long and time consuming process of putting out a RFP (request for proposal) or RFQ (request for quote) for their waste & recycling services, They spend long hours doing the following:

  • Reviewing their current contract status, which involves their legal team
  • Reviewing their service levels questioning themselves if they are accurate and needed
  • Drafting up the actual document that covers every aspect of the service as well as something that will deliver legitimate price comparisons
  • They review, select all of the companies that they feel could handle the service and put out the document with a time frame attached for completion
  • Once they receive the comparisons they look for the lowest costs savings and select a winner.

This entire process can involve several departments; facilities, purchasing, legal and upper management. The process itself can take up to 6-months to complete but one thing is always certain, they save a lot of money off of their current rates and are typically very happy with the results. Then after a typical three-year term, they start the entire process all over again, select a winner and guess what - they are really happy again!

How does this happen? How can the rates be lower again? The answer is simple, most companies are only comparing “rates” for service when there is so much more like “right sizing” service levels and “diverting” waste out of the waste stream and into a recyclable commodity. The haulers low ball their pricing to get the business then throughout its term add in fees such as fuel surges, admin charges and environmental fees.

Federal International offers a consulting service that does all of the work that goes into an RFP for you. We put out the RFP just like you do but with a difference, we know the costs that go into the haulers rates and also can compare the RFP rates with our national rates. We don’t go away. We stay in place and continue to drive savings on top of the rate. We right size,divert recyclables out of the waste stream, and help you become a more sustainable company achieving your zero waste initiatives.

If you spend more then $3000 per month on your monthly waste spends, give us a call. Let us manage your waste stream and pay for us with money that currently does not exist that we earn for you. Call us today at 314-721-3377.

 Renegotiating Waste Contracts Saved  1 Million Dollars Over 4 years