REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 11, 2024
FROM
PETE MENDOZA, Director, Purchasing Department
SUBJECT
Title
Agreement with Stericycle, Inc. dba Shred-it for Paper Shredding and Recycling Services
End
RECOMMENDATION(S)
Recommendation
Approve an Agreement with Stericycle, Inc. dba Shred-it, including a non-standard term, for the provision of paper shredding, media destruction, and recycling services, at fixed rates listed in Attachment C, for the period beginning July 1, 2024 through June 30, 2029.
(Presenter: Pete Mendoza, Director, 387-2073)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). Departments that require the services are responsible for ensuring there is adequate funding in current and future budgets. The impact on each department budget is dependent upon the need for the services. The annual expenditure for these services has been approximately $230,000, but may fluctuate up or down depending on actual departmental needs.
BACKGROUND INFORMATION
The County has an ongoing need for countywide destruction of hard disk drives, optical disks, confidential documentation, and the pick-up of non-confidential bulk paper bins. Approval of the agreement with Stericycle, Inc. dba Shred-it (Stericycle) will allow the County to leverage all service needs for the most competitive pricing as well as standardize services for all departments through a single provider.
Additionally, standardization through Stericycle will ensure the County is in compliance with the new state regulations required by Senate Bill 1383 as Stericycle recycles all paper waste, diverting it from landfills. Stericycle is able to provide reporting on diverted waste on a quarterly basis, making it easy to compile data for reporting to the State.
The agreement includes terms that differ from the standard County contract terms. Stericycle is unwilling to negotiate these terms. The non-standard term is as follows:
1. Stericycle’s total liability to the County is limited to three times the service fees paid over the preceding 12 months of the agreement term.
• The County standard contract does not include a limitation of liability.
• Potential Impact: Stericycle caps its liability to the County for all claims arising under the agreement. Claims could exceed the liability cap and the agreement amount leaving the County financially liable for the excess.
The Purchasing Department (Purchasing) recommends approval of the agreement with Stericycle, including the non-standard term, as it will improve County government operations through competitive pricing and service standardization.
PROCUREMENT
The County Administrative Office approved and authorized the release of Request for Proposals (RFP) No. AGENCY23-PURC-4889 with Purchasing on March 1, 2023, to solicit proposals from interested and qualified agencies to provide destruction and recycling services for a period of five years. The RFP was posted to the County’s Electronic Procurement Network (ePro).
Two proposals were received by the established deadline in response to the RFP. Proposals from the two agencies listed below met the minimum requirements and continued through the evaluation process.
|
Proposer Name |
Location |
|
Stericycle |
Bannockburn, IL |
|
Iron Mountain Information Management, LLC. (Iron Mountain) |
Boston, MA |
The evaluation panel, with representation from Arrowhead Regional Medical Center, the Auditor-Controller/Treasurer/Tax Collector, the Sheriff/Coroner/Public Administrator, and Human Services, reviewed and evaluated the proposals based on the criteria listed in the RFP. The criteria included qualifications and experience, technical specifications, cost, and references.
Based on the evaluation criteria, the evaluation panel initially determined that Iron Mountain best met the needs of the County. Negotiations began on June 28, 2023, and continued through September 29, 2023, at which point it was determined that an agreement on insurance terms could not be reached between the parties. Negotiations with Iron Mountain were terminated, and negotiations with Stericycle began on September 29, 2023. Award and denial letters were sent to all responsible and responsive proposers on April 19, 2024. No protests were received within the allowable period.
Purchasing supports this competitive procurement based on the formal solicitation described above.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Adam Ebright, Deputy County Counsel, 387-5455) on April 17, 2024; Risk Management (Gregory Ustaszewski, Staff Analyst II, 386-9008) on April 11, 2024; Finance (Kathleen Gonzalez, Administrative Analyst, 387-5412) on April 29, 2024; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on May 13, 2024.