Purchasing from a competitor?

Because he is a local company? I'm not sure why he doesn't, I just know he is bringing it to the yard a hour and a half away. As far as I know he is a one man operation so it might be that he doesn't want to spend the extra 5 hours in the truck. And I did the math wrong, it would profit $124 a ton if it is prepared. But we have a grinder, huge cut off, and a cutting torch.

The answer is ALWAYS No if you don't ask the question

Meaning if you don't ask him about buying it from him, The answer will be NO

BUT
In your opening post you indicated all you had to do was have him load the trailer and then you would take it to your yard

NOW you are indicating there is additional work (clean up) to do to the load >> we have a grinder, huge cut off, and a cutting torch.
Seems to me you have to account for this additional work when figuring your profit margin
I would think you would have to do a partial off load to clean up the material that was loaded on the trailer first

Also you have to account for consumables that you will be using >> Gas and tips for the torch, Blade for the huge cut off and electric and wheels for the grinder