Dive Brief:

• The Hammond Board of Public Works has rejected two bids from companies to take over the recycling department for the city. 
• Waste Management and Homewood Disposal each placed bids for recycling services in Hammond, Indiana. 
• Members decided against privatizing recycling because the bids did not include enough savings.

Dive Insight:

The city was looking to score a savings in taxes or a net zero cost with better services, but both bids came in at higher costs than the city currently spends on recycling. Most areas that consider waste privatization ultimately embrace it because of the savings generally associated with privatizing these services. However, with the diminishing profitability in recycling, it is becoming increasingly difficult to reap financial gains. Quincy, Illinois had proposed privatizing recycling, until it was found that the town would lose $1 million if it made the move toward privatization.