WINDHAM — Selectmen opted to waive the bidding process and extend the town’s solid waste contract with Covanta Energy Corporation.

The long-term agreement would allow the town to get the best tipping fee rate, reduce hauling costs to the disposal location and save money for the town, said David Poulson, manager of the Solid Waste Management Department.

“My professional opinion is to extend the contract and not lose this window of opportunity,” Poulson said.

The new contract takes effect Jan. 1 and provides a fixed, flat-rate tipping fee of $72 per ton through 2017. Under the current contract, the tipping fee is $71 a ton and increases $2 per ton annually. Based on an average of 4,500 tons of solid waste a year, Poulson estimated the new contract would save the town about $40,500 over the five-year term of the extended contract. An additional $5,000 in savings would be realized in hauling costs, Poulson said, because waste is transported locally to Haverhill, Mass., for disposal.

The extension will also align solid waste and recycling contract expiration dates. Single-stream recycling is taken by Integrated Paper to North Andover, Mass., under a separate contract. Recycling brings in about $50,000 in annual revenue, Poulson said.

Covanta’s existing contract with the town was to expire in December 2013. The company uses municipal solid waste as fuel to generate renewable energy, according to its website.

jhanson@newstote.com