With a composting operation in a growth and transition phase, Howard County, MD, sought to evaluate and determine how to proceed with the program going forward and to get assistance in the decision-making process to either expand the organics management operations internally, engage a contractor to manage the operations, or some combination of both.

GBB was tasked with providing an accurate assessment of the cost of the composting operations to compare with the market rate charged by a contractor. The analysis aimed to provide an “all-in” net cost (or surplus) of composting operations by product (mulch, compost, and blended topsoil) to reveal the costs per ton to process and the costs per cubic yard to produce the three products, inform County management on the efficacy of its operations, and also provide guidance as to product pricing.

As part of the assignment, GBB reviewed existing operations, interviewed staff, and developed schedules and cost estimates for equipment replacement and new equipment purchases. GBB also used full-cost accounting tools to establish the cost of operations as if it were a stand-alone business, including all direct and indirect costs required to conduct the business and product sales that support its operations.