Indianapolis’ Department of Public Works (DPW) was responsible for the collection and disposal of solid waste in the City. Over time, however, the delivery model had become an uncoordinated patchwork of providers and practices. The City had historically renegotiated contracts year-by-year, and the process had resulted in a de facto service monopoly within each of the City’s 27 districts. Not surprisingly, costs had increased for many years.
Through a successful managed competition led by Faegre Baker Daniels Consulting principal Skip Stitt, then the City’s Director of Enterprise Development, the City’s solid waste team reengineered its service delivery model and cost structure and submitted one of the winning proposals. The City also created a single contract oversight role within DPW and established a rigorous set of key performance measurements that included customer satisfaction surveys and detailed complaint tracking by district. Total cost savings over the first five years of implementation were $13 million.