Decision details

Award of Contract for Provision of a Household Recycling Centre - MAY15/CMDN/48

Decision Maker: Cabinet Member for Street Scene, Waste Management and Communications

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

The attached Exempt Annexe is NOT FOR PUBLICATION in accordance with paragraph 3 of Schedule 12A of Part 1 of the Local Government Act 1972 in that it contains information relating to financial and business affairs namely, financial analysis of offers received for the operation of the contract by participating companies.

 

The public interest test has been applied to the information that is contained in the Exempt Annex to this Decision Notice and it is considered that the need to retain the information as exempt outweighs the public interest in disclosing it because to disclose it could compromise the Council’s position in any future procurement for these works.

 

The Cabinet Member:

 

Approved the award of contract for the Management and Operation of Dogsthorpe Household Recycling Centre (HRC) to HW Martin Waste Ltd for a period of two years from 01 May 2015 with an option to extend for up to 6 months. The total value, including the maximum extension and an estimation of variable spend related to waste arising, is £750,000.

Reasons for the decision:

The Council finds itself in need of a short term arrangement to bridge the gap between the end of the current management arrangement for Dogsthorpe and the completion of the development of the new facility in Dodson House.  The short term nature of this requirement and the results from the soft market testing and previous procurement indicated little prospect of delivering any competitive tension in the marketplace with the incumbent supplier likely to win again.

 

Alternative options considered:

The following options were considered.

 

Option

Description

Reason for Rejection

1

Extend existing contract

The existing contract was let for a period of 2 years with an option to extend for an additional 6 months. That option was exercised and the contract will expire on 30 April 2015.  There is no scope to extend the Contract for a further period.

2

EU procurement

For the reasons outlined above, it is highly unlikely that a procurement exercise would result in a position that is any different from the existing one.

 

3

Include the interim and new management and operation under one contract

The Council has yet to let a contract to construct the new facility planned for Dodson House in Fengate and due to the capital assets already in place at Dogsthorpe with the incumbent operator it would be unwise to combine the two requirements.  The development and construction of a new facility and its long term operation offer a different set of risks and rewards to those of maintaining the relatively simple operation at the Dogsthorpe site and as such linking the two procurements is likely to limit the value of bringing them together.

 

4

Do nothing

This is not an option as the Council is obligated to provide a Household Recycling Centre under the Environmental Protection Act 1990. As the Council is a Waste Disposal Authority, it is required by statute to provide a recycling facility.

5

Award  a short term contract whilst undertaking a parallel procurement exercise to identify a service provider for the longer term

An option might be to award a short term contract to the incumbent supplier, (say for 5 months), and carry out a procurement exercise. This might reduce the risk of challenge however it remains that this option would be unlikely to deliver an alternative short term service provider.

 

Interests and Nature of Interests Declared:

None.

Background Documents:

None.

Publication date: 06/05/2015

Date of decision: 06/05/2015

Effective from: 12/05/2015

Accompanying Documents: