February 12, 2013 - The City of Tampa announced that it will settle with Waste Management for $1.2 million, and will release a formal invitation to bid, which will allow all commercial haulers the opportunity to bid for a new contract.
A preliminary audit showed that the City was overcharged for services by Waste Management by $1.4 million, but after discussions, the City will accept Waste Management’s settlement offer for $1.2 million.
The City of Tampa will release the invitation to bid today to allow all commercial haulers the opportunity to bid for a new contract. The new contract will go into effect July 1, 2013. Per the City's purchasing guidelines, once Waste Management pays the $1.2 million to the City, they will be eligible for consideration for the contract award.
In order to ensure a smooth transition period, the City of Tampa intends to extend Waste Management's contract for an additional three months, from April 1, 2013 to June 30, 2013. Waste Management has agreed to the extension.
Tampa City Council must approve Waste Management's contract extension, and will also approve the new contract for service.
Background: The Internal Audit Department is in the process of reviewing the commercial contract with Waste Management, which provides commercial pick-up services for 40% of the city.