Over 50 percent of U.S. cities of varying sizes contract all or part of their refuse collection services. While no comprehensive surveys have recently been undertaken, the private-sector role in the provision of waste management services appears to be increasing. U.S. models of privatization take many forms. For collection services, at least six different models of private-sector service delivery exist. This paper will identify those privatization procedures and programs that enhance success.
Success lies more in the implementation process than in the specific contracting model selected.
One central purpose of privatization is to harness competitive market forces to generate ongoing incentives for more efficient and less costly solid waste management service. Central to this harnessing process is a procurement document that allows for precise and objective evaluation, flexibility, economies of scale, efficient contract length, and accountability. The contract should include several critical elements. Waste management involves an array of different services. Successful privatization requires that one define which of these services will be transferred to the private sector.