Decision details

Proposed decision

(a)  APPROVE the procurement and contract award of a wood waste processing contract for an initial 5 years (plus an extension of up to 2 years);

(b)  DELEGATE authority to the Director of Environment and Circular Economy to take relevant actions to facilitate the required procurement activity;

(c)  DELEGATE authority to the Director of Environment and Circular Economy, in consultation with the Cabinet Member for Environment, to take relevant actions including but not limited to awarding, finalising the terms of and entering into the relevant contracts or other legal agreements, as necessary, to implement the decision; and

(d)  DELEGATE authority to the Director of Environment and Circular Economy, in consultation with the Cabinet Member for Environment, to award extensions of the contract in accordance with the relevant clauses within the contract.

Reason for the decision

KCC currently has in place contractual arrangements that are due to expire 14th November 2026, and therefore is seeking new contractual arrangements from 15^th November 2026, for the processing of wood waste currently collected at the Household Waste Recycling Centres (HWRCs) and by the Waste Collection Authorities across Kent.

Background

-      As the Waste Disposal Authority, KCC has a statutory responsibility for the disposal of controlled waste from deposits by residents at HWRCs across the County and collected by Borough and District Councils (known as the Waste Collection Authorities).

-      An existing wood processing contract is due to expire on 14th November 2026, and this procurement seeks to establish new countywide contractual arrangements from 15^th November 2026. A lead-in time is necessary to allow for the development of a detailed and fit-for-purpose service specification, negotiations and mobilisation, as well as to ensure all internal governance and approval processes are completed ahead of issuing the full tender.

-      The commission will be offered as a single County-wide contract and procured via a competitive procurement process under the Procurement Act 2023 and will include the provision for managing circa 25,000 tonnes per annum.

-      The contract will be for an initial period of 5 years, with an option to extend up to a further 2 years (and incorporates a break clause in 2028). This timeframe and approach is intended to ensure a reliable and consistent statutory service during the Local Government Reorganisation transition period.

-      The extension will be considered based on performance and value for money and will be assessed through a benchmarking exercise conducted 18 months before the extension clause is activated.

-      The contract will ensure that providers adhere to environmental legislation, permitting requirements and best practice is delivered.

Options (other options considered but discarded)

-      Option 1 - Do nothing – the current arrangements will cease and KCC will be unable to accept the waste - this is not an option due to KCC’s obligation to manage controlled waste under waste legislation and dispose of it as per the Environmental Protection Act 1990.

-      Option 2 - Continue to accept the waste but utilise alternative disposal options by using landfill - This is not a viable option. KCC has a legal obligation to manage waste in accordance with the waste hierarchy, which prioritises recycling over disposal. Sending wood to landfill would not only undermine the Council’s recycling and landfill diversion targets but would also result in a significant financial burden.

-      Option 3 - Extend for a further period - This is not legally possible, as the wood contract has been extended within the parameters of the existing contracts. 

-      Option 4 – The Recommended Option: Commence a full procurement exercise. This is the preferred option and provides sufficient time to undertake a full commissioning exercise before 15^th November 2026, and to secure a provider who can treat and utilise the waste material meeting the circular economy desired outcomes.

How the proposed decision supports the KCC Strategic Statement

·   We will ensure there is an effective waste management and recycling service that is value for money and improves rates of recycling through a simpler and efficient process.

Financial Implications

-      This is a revenue-based contract.

-      The budget for 2025/26 is £907,100 based on budgeted tonnes of 22,335.

-      The proposed budget for 2026/27 is £940,600 based on budgeted tonnes of 22,727

-      Actual tonnes processed in 2024/25 were 24,896.43, therefore the estimated value of this contract is based on receiving 25,000 tonnes per annum.

-      Tonnage has been consistent over the last 3 years of the contract and therefore, 25,000 tonnes is a realistic annual estimation.

-      Annual costs of the contract are calculated on 25,000 tonnes multiplied by an average gate fee (uplifted by indexation in November 2025) = £1.035m

-      Any tonnage fluctuation above or below the budget will be managed as part of the monthly financial monitoring process.

-      Haulage costs are accounted for within the HWRC and Transfer Station contracts.

-      If the most economically advantageous compliant tender exceeds the available budget, and there is limited scope to reduce costs due to the operational nature of the service, this would result in an in-year financial pressure.

Legal Implications  

-      A competitive procurement process will be carried out under the Procurement Act 2023, which meets the obligations on transparency, fair treatment and best value.

-      The Waste Framework Directive (2008/98/EC) sets the basic concepts and definitions related to waste management, including the principles of the waste hierarchy. It requires Councils to take measures to encourage the separation and recycling of waste.

-      The Circular Economy Package includes several directives aimed at promoting recycling and reducing landfill usage (Note: KCC currently at less than 1%). It sets targets for recycling rates and requires Councils to implement measures to achieve these targets.

-      Due to the forthcoming Local Government Reorganisation, it is anticipated that the contract will be novated to the successor authority or authorities, depending on how the new governance structures are established.

-      Schedule 1 of The Controlled Waste Regulations 2012 classifies waste arising from construction or demolition, including preparatory work as Household Waste (as defined under the Environmental Protection Act 1990). This classification includes wood waste. KCC has an obligation to recycle or recover this under the legal requirements of the Waste Hierarchy which is set out in the Waste (England and Wales) Regulations 2011.

As Cabinet Member for (the Kent) Environment, I agree to: 

(i)    APPROVE the procurement and contract award of a wood processing contract for an initial 5 years (plus an extension of up to 2 years),

(ii)   DELEGATE authority to the Director of Environment and Circular Economy to take relevant actions to facilitate the required procurement activity,

(iii)DELEGATE authority to the Corporate Director of Growth, Economy and Transport, in consultation with the Cabinet Member for (the Kent) Environment, to take relevant actions including but not limited to awarding, finalising the terms of and entering into the relevant contracts or other legal agreements, as necessary, to implement the decision; and

(iv)DELEGATE authority to the Corporate Director of Growth, Economy and Transport in consultation with the Cabinet Member for (the Kent) Environment, to award extensions of the contract in accordance with the relevant clauses within the contract.