Dive Brief:
- The City Council of Jackson, TN finalized a new five-year collection contract with Waste Management after previously voting to go with the company earlier this year.
- Red River Waste Solutions submitted a bid that was $3.2 million lower over five years, but city officials chose to continue their 30-year relationship with Waste Management due to a positive track record. Republic Services and Inland Waste LLC were also among the original bidders. The full bid amounts were not reported.
- The contract will run until 2021, at which point the city can renew for five additional one-year terms.
Dive Insight:
This marks the end of a multi-month process and a creative campaign by Red River. The company created a website called garbagevote.com to highlight the potential cost savings and encourage residents to contact their council members. The website also included testimonials from officials in cities where Red River currently operates, such as Nashville and Fort Knox.
Texas-based Red River has grown in recent years through multiple acquisitions in states across the country, including Tennessee, Iowa and Illinois. In June, the company also sold select non-core hauling assets to Waste Connections in Rapid City, SD.
As many companies have learned it can be hard to compete with Waste Management, especially in municipalities, like Jackson, where they have a long history. The company has had continued success across the nation, and recently announced another quarter of positive earnings and the appointment of a new president.
