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  • Issue
  • Issue details

    21/00006 Dry Mixed Recyclables Waste Processing Contract

    Delegated authority to the Cabinet Member for Environment to approve the award of a new contractual arrangement for the receipt and processing of Dry Recyclate delivered to KCC’s Transfer Stations by Collection Authorities in Mid and West Kent.

     

     

    Reason for the decision

     

    ·         The current contract which commenced 4th July 2016, has seen two extension periods; One to the 3rd July 2020 and extended again for an additional 12 months to 3rd July 2021 under the Procurement Policy Note 01/20: Responding to COVID-19. The current extension expires on 3rd July 2021 and to ensure KCC’s statutory obligations are met as the Waste Disposal Authority and provide continuity of service, a commissioning activity is required.

     

    Background

     

    ·         As the Waste Disposal Authority, KCC has a statutory responsibility to dispose of waste collected by the Waste Collection Authorities, one of which is Dry Mixed Recycling (DMR) – co-mingled (Paper and Card, Cans, Plastics and Glass).

     

    ·         In taking receipt and processing this waste, it is sorted and separated at a Materials Recycling Facility and each separated material is recycled into new products.

     

    ·         KCC Waste Management currently operates a contract with Viridor Waste Management Limited (ref. SS15105) for the processing of household co-mingled mixed dry recyclable materials that are collected from households by Waste Collection Authorities within Kent.

     

    ·         It is envisioned that the commission will be presented in one lot and sourced via KCS’s framework for the ‘Supply of Waste Management Services’ (ref. Y21003) and will include the provision for managing circa 66,107 tonnes of DMR.

     

    ·         The contract is expected to commence on the 4th July 2021, for a duration of 27 months to 29th September 2023, (with an additional 12 month extension if required) to align with the cessation of an existing Dry Recycling contract that covers a different recyclate mix of other Waste Collection Authorities.

     

     

    Options(other options considered but discarded)

     

    ·         Option 1 - Do nothing – the current arrangements will elapse; this is not an option as this will result in KCC’s failure to meet its statutory requirements as the Waste Disposal Authority for making a disposal provision.

     

    ·         Option 2 - Continue to accept the waste, but utilise alternative disposal options by using landfill or incineration; this is not an option as there is a desire to move this material up the waste hierarchy and to meet landfill diversion targets. These are also more expensive options, and incinerating recyclate is not a desired outcome for KCC.

     

    ·         Option 3 – Discontinue accepting the DMR waste from the Collection Authorities; this is not an option due to KCC’s obligation to take this waste as the Waste Disposal Authority.

     

    ·         Option 4 - Undertake a commissioning activity to secure a provider who is able to treat and utilise the waste material meeting the circular economy desired outcomes and is both financially and environmentally beneficial for the Authority, demonstrating best value for Kent residents.

     

    Preferred option:

     

    Option 4 is the preferred option. The authority is seeking to appoint a new Provider to secure a contract (for up to 39 months) that will benefit and achieve the best outcomes for the authority and Kent households and fulfil the Statutory duty of KCC operating under the Environmental Protection Act 1990, to dispose of collected municipal waste.

     

    The commission of this contract will meet Kent CC’s Strategic Statement 2015 – 2020 regarding the following outcomes:

    ·         Kent communities feel the benefits of economic growth by being in work, healthy and enjoying a good quality of life.

    The vision is to focus on improving lives by ensuring every pound spent in Kent is delivering better outcomes for Kent’s residents, communities and business.

    Decision type: Key

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

    Decision status: Recommendations Approved

    Division affected: Ashford Central; Ashford East; Ashford Rural East; Ashford Rural South; Ashford Rural West; Ashford South; Dartford East; Dartford North East; Dartford Rural; Dartford West; Gravesend East; Gravesham Rural; Maidstone Central; Maidstone North East; Maidstone Rural East; Maidstone Rural North; Maidstone Rural South; Maidstone Rural West; Maidstone South; Maidstone South East; Northfleet & Gravesend West; Sevenoaks North & Darent Valley; Sevenoaks Rural North East; Sevenoaks Rural South; Sevenoaks Town; Sevenoaks West; Sheppey; Sittingbourne North; Sittingbourne South; Swale East; Swale West; Tenterden; Wilmington;

    Notice of proposed decision first published: 04/01/2021

    Decision due: Not before 2nd Feb 2021 by Cabinet Member for Environment
    Reason: to allow the proposed decision to be published on the FED for 28 days

    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: david.beaver@kent.gov.uk.

    Consultees

    Public consultation is not required as there is no impact on the end user.

    Cabinet Committee consultation planned with the E&TCC and the Divisions / Local Members are particularly affected: Ashford, Dartford, Gravesham, Maidstone, Sevenoaks and Swale, during the term of the Contract.

    Financial implications: • The total cost of the commission for the 27 month initial period is projected to be circa £7,135,920 based on 68,000 tonnes; • The extension of 12 months valued at £3,171,520 based on 68,000 tonnes; • Difference between budgeted tonnes and estimated tonnes for commission is due to pandemic impact on kerbside waste likely to continue into 21/22 • The current markets for co-mingled mixed dry recyclables plastics, cans, glass and paper fluctuate as they are market driven; • Haulage costs are accounted for within Transfer Station contracts, however they will be included as part of the tender evaluation. • The 21/22 revenue budget is £2,844,000 based on 60,979 tonnes on an average tonnage price of £46.64. • Materials Recycling Facilities Incl. Glass: P 7WC 61018 523 52U 0000 00

    Legal implications: A key function of the Waste Disposal Authority operating under the Environmental Protection Act 1990, is to provide outlets for the municipal waste collected from households in Kent. The Resource and Waste Strategy published in December 2018, states an ambition to reduce greenhouse gas emissions from landfill, this adheres with KCC’s aim of zero waste to landfill

    Equalities implications: An EQIA has been carried out and no equality implications have been identified as this is a collection contract and not a public facing service. Data Protection implications: • There will be no personal data collected or exchanged and there are no implications under GDPR

    Decisions

    Agenda items

    Documents