2000 Trash Cutter Award Program Case Studies

Los Angeles County: Best Procurement Program

• Program Description
• Program Summary
• Contact

Program Description

The Los Angeles County Department of Public Works, as a part of its responsibility to ensure county compliance with AB 939, has implemented numerous programs encouraging residents as well as businesses to reduce, reuse, and recycle. The county also recognizes that in order for recycling programs to be successful, the county must lead by example in encouraging others to purchase recycled-content products.

Program Summary

The Los Angeles County Board of Supervisors (Board) takes great pride that in 1990, the county was among the very first jurisdictions to implement a comprehensive green procurement policy in the region. This procurement policy was broadened in March 1994 to require all county agencies to purchase recycled products whenever they meet the county requirements, and the overall costs are less than or equal to those of nonrecycled products. Because the county was and is currently the largest employer in Southern California, it was critical that it take the lead in developing and maintaining markets for recyclables.

To ensure the continued success of the recycling efforts and to further demonstrate its leadership, the county has implemented innovative and creative programs to strengthen the markets for recyclables. Below are brief descriptions of two such programs.

Recycled-Content Bond Paper

Recognizing that the county uses nearly two million sheets of paper per day, in September 1999 the Board took action to substantially enhance the recycled-paper market. It required all county agencies and their contractors to use 20 percent (or higher) recycled-content bond paper whenever the overall cost was not more than ten percent above the lowest responsible bid for virgin bond paper. This price preference was unprecedented and unparalleled (second only to the federal government's mandate that its departments use only recycled paper) considering the volume of paper being purchased. Despite preliminary estimates that the policy would cost the county an additional $200,000 per year during a budget "crunch," the Board proceeded with the implementation of the program.

To further demonstrate its commitment to stimulate the recycled-paper market and to encourage other governmental entities to begin using recycled paper, the Board also adopted measures that provide for the establishment of a Cooperative Purchasing Program. This program enables governmental entities to join the county (free of charge) in purchasing recycled bond paper and benefit financially from the advantage of collective purchasing power.

After conducting a lengthy evaluation process, the county selected a contractor (the agreement is for three years with an option to extend for an additional two years) to supply 30 percent recycled-content paper at below wholesale cost to all participating governmental entities ($22.49 per case with no minimum purchase requirement and with the added convenience of next day delivery).

Subsequently the county, in collaboration with the UCLA Solid Waste Policy Committee, forwarded letters to all 88 cities in the county encouraging them to join the program. To date 14 cities, including the City of Los Angeles, are participating in the program and numerous other cities have shown an interest in joining the program. The enthusiasm expressed by the cities to join the program has been overwhelming. Coupled with the fact that cities are saving a tremendous amount of money by joining the program (for example, based on projected annual consumption, the City and County of Los Angeles alone will be saving $84,000 and $40,000 per year, respectively, compared with their previous contracts), the program is greatly assisting cities in meeting the 50 percent waste diversion mandate.

Based on the strong interest shown to date, the county is reinvigorating its efforts to encourage the participation of the remaining cities in Los Angeles county, as well as other governmental agencies including school districts. Once this goal is accomplished, not only will the recycled-paper market in Southern California be significantly strengthened, but its positive impact will reverberate throughout the state.

Re-refined Oil

The improper disposal of used oil--such as pouring it onto the ground, down storm drains, or into trash containers--poses serious health and safety problems, pollutes the environment, and costs a lot to clean up. To address this problem and comply with requirements of the Federal Clean Water Act and AB 939, for many years the county has been collecting and recycling used motor oil and hydraulic fluid through the operation of 10 used oil collection centers and implementation of its multimillion dollar, countywide household hazardous waste management program. While the county has made tremendous efforts to collect and recycle these lubricants, their efforts have generally addressed the "supply" side of the equation.

To remedy this, the county has taken steps to address the "demand" side of the equation by stimulating the markets for used oil. In 1998 after learning that the price for re-refined oil was higher than their virgin counterparts and that some county departments were reluctant to use re-refined oil, the Board expanded its green procurement policy by instructing county departments to use re-refined oil lubricants where and when practical and appropriate. Recognizing how critical this program is in strengthening the used oil market in the region, the Board also allowed a five percent price preference for re-refined oils over their virgin counterparts.

After conducting a lengthy evaluation process, in February 1999 the public works department, in coordination with the county's procurement agency, selected Rosemead Oil Products, Inc. as the contractor. Through this contract, all county departments and their primary maintenance contractors, the State, and all 88 cities in Los Angeles county can purchase premium re-refined oil lubricants at the same terms and conditions. By using the county's purchasing power to its advantage, the public works department was able to reduce the cost of re-refined oil products significantly below the cost other agencies were paying for the same grade and quality of virgin oil products.

For Further Information, Contact:

Los Angeles County
900 South Fremont Ave.
Alhambra, CA 91803-1331
(626) 458-5167
www.888CleanLA.com