Issue details

20/00052 - Organics Waste Processing Contracts - Request for approval to extend the Contracts



There is an existing ROD, decision number 14/000/44 for the processing of Green Waste in Kent. There is no delegation to extend the contracts under the existing ROD, however, there exists the option to extend within the current contractual arrangements. The Contracts have the option to extend the Initial Term in two phases: the first period of 48 months and the second period of 24 months.


The Contracts were awarded to:


·         SS1273 (Lot 3) – Green Waste arising in East Kent - Countrystyle Recycling Limited.   

·         SS1273 (Lot 4) – Green Waste arising in Mid Kent -   New Earth Solutions (Kent) Limited.

·         SS1273 (Lot 5) – Green waste arising in West Kent - New Earth Solutions (Kent) Limited.


The contract with Countrystyle Recycling Limited already contains conditions for incorporating the processing Waste collected from the kerbside, which is additional volume to that currently received at Household Waste Recycling Centres, this is in accordance with Regulation 72(1)(a) of the Public Contract Regulations 2015. The extension of this contract will enable KCC to meet future demand by incorporating the processing of green Waste collected from the kerbside by the Waste Collection Authorities in East Kent when the title of Waste transfers to KCC on 16 January 2021.


Options - it is a legal requirement (2012 Executive Arrangements regulations) to outline other options considered


There are two options as follows:

1.    Do nothing – the current contracts will elapse with an unofficial arrangement in place with the current provider/s.

2.    Extend the existing arrangements under the current contracts’ terms and conditions, with the additional processing of Green Waste collected from the kerbside by the Waste Collection Authorities in East Kent from 16 January 2021


The 2nd option is possible as the existing contracts are satisfactory and performing well. A full procurement is not required as there is already the option to extend; both contracts are commercially competitive and have been through a competitive tendering process at the time of the initial decision.




Decision type: Key

Reason Key: Expenditure or savings of more than £1m;

Decision status: Recommendations Approved

Notice of proposed decision first published: 06/05/2020

Decision due: Not before 3rd Jun 2020 by Cabinet Member for Environment
Reason: In order that the proposed decision can be published for a minimum of 28 days in accordance to statutory requirements

Lead member: Cabinet Member for Environment

Lead director: Simon Jones

Department: Growth, Environment & Transport

Contact: David Beaver, Head of Waste Management and Business Services 03000 411620 Email:


Views will be sought from all members as part of the decision-making process.


Financial implications: - Across both phases of the contract extensions, there is sufficient budget to fund the service. - KCC’s Waste Management’s budget for the current year (2019/2020) for the Organics contracts is £2,221,900.00. The costs for the two extensions are: • Phase 1 extension – 48 months = £8,407,431.00 • Phase 2 extension – 24 months = £4,606,122.00 These are revenue-based expenditure contracts that are within existing budgets, However, there is an opportunity to realise savings by negotiating a reduction to the gate fee for Green Waste received in East Kent when the requirement to process both kerbside and HWRC Green Waste increases the volumes of Green Waste processed by Countrystyle Recycling Limited. Provide £ total for the overall cost to KCC (including capital and revenue across whole project or full lifetime of the contract if relevant)? The total cost for the two extension phases (72 months in total) across all three Contracts is, with annual indexation: £13,013,553.00.

Legal implications: Under the Environmental Protection Act 1990, as the Waste Disposal Authority, KCC has a legal obligation to provide a waste disposal service. The original commissioning solution enabled the Authority to discharge its statutory duty as Waste Disposal Authority. KCC will be using Regulation 12 (Public Contracts between entities within the public sector) of the Public Contracts Regulations 2015 to extend these Contracts.

Equalities implications: Equalities Implications: An EQIA was completed for the original ROD and there are no changes to the assessment. Data Protection implication: There is no personal data collected or exchanged and no implications under GDPR.