Recycling contract cancelled
By Editorial Staff, Resource Recycling
The state of Nebraska and a local processor have shown how not to execute a successful paper recycling program.
State officials have cancelled an agreement with Shredding Solutions of Lincoln, saying the firm owes the state money for its scrap office paper. However, state program executives are also being accused of poor management.
The contract called for the processor to pay the state a market rate for collected paper, based on a published price index. The agreement was for approximately 400 tons annually. However, Shredding Solutions paid a flat rate of $25 per ton under a "verbal agreement" with state officials, rather than a rate of $55 per ton to more than $100 per ton, as called for under the agreement. The firm was also sporadic in making its payments, according to a state audit. The auditors said the firm owed the state about $60,000. After the firm only paid back about half that amount, the state cancelled the agreement and is now seeking new bids.