DRMS Looks to Open Long Term Scrap Arrangements

 The Defense Reutilization and Marketing Service is looking to shift its approach to selling recyclable materials from issuing contracts as material is generated toward setting up long-term contracts with vendors to handle all the material in predetermined regions of the country.

During a presentation given earlier this month during the ISRI Gulf Coast Chapter meeting Roscoe Davis, scrap business unit leader for the DRMS sketched out the agency’s goal moving forward.

Traditionally, the DRMS has sold through both national and local sales. Materials that is sold includes most grades of metal, as well as paper, plastics, wood, glass and other recyclables.

According to a newly restructured plan, being proposed by the DRMS, the sale of recyclables would shift, with three regions, the West, Midwest and East.

According to Davis, the proposal will be up for solicitation in July. The DRMS also will be having a meeting with interested parties in August at a yet-to-be determined location.

Under the new DRMS program a winning bid would be for seven years with an additional two years. Also, because of the size and scope of the proposal the interested parties will likely require need to subcontract other parties to handle some of the materials, as well as deal with the transportation, equipment and other peripheral operations.

According to a presentation given by Davis, the federal government will retain 80 percent of the realized revenue after a contractor completes the sale.

According to Davis, who spoke at ISRI’s recent Gulf Coast Chapter meeting, the three regions and the estimated volumes of recyclables are the following: North East, 86.65 million pounds; Central Region, 206.794 million pounds; and the West Region, 180 million pounds.