Chicago Names Finalists to Operate MRF

The City of Chicago has narrowed the list of potential operators to operate the city’s MRFs on a long-term concession and lease.

"We are very pleased with the response to our RFQ and the number of teams that have the financial capacity and technical expertise required to successfully operate these facilities," said Paul Volpe, Chicago’s CFO. "This large number of qualified bidders will only serve to strengthen the competitive process as we move forward."

The seven that companies able to bid on the project are the following: Allied Waste Transportation, Chicago; ARC Disposal & Recycling, a subsidiary of Republic Services, Inc., Mount Prospect, IL; Fulcrum BioEnergy & Casella Waste Systems, Inc., Pleasanton, CA; Norcal Waste Systems, Inc., San Francisco, CA; Urbaser, S.A. & Transload America, Inc., Madrid, Spain and Batavia, IL; Veolia Environmental Services, West Chicago, IL; and Waste Management of Illinois, Downers Grove, IL

Twelve companies submitted responses to a request for qualifications issued by the Chicago this past fall, but five teams either withdrew their submissions or were deemed not qualified.

The City will begin a competitive bidding process in which the companies will be provided additional information and allowed to conduct due diligence on the MRFs.

The city owns three MRFs. They receive, process, and transfer about 75 percent of the residential solid waste collected by the city’s Department of Streets and Sanitation.

A date for the submission of formal bids has not yet been set.

Because only qualified bidders will be allowed to bid, the highest bid amount will be the only factor in determining who will operate the MRFs. If the bidding results are positive, the City may proceed with a transaction. If bids do not meet the city’s expectations, the City may reject all bids.

Any lease transaction will require the approval of the Chicago City Council.