Proposed decision
To extend current household waste recycling centre and waste transfer station operation, management and haulage contracts in Mid, East and West Kent (SC18031 and SC18031 WK) for a period of 18-months.
Reason for the decision
The current contracts are due to expire in October 2025. New contracts are being procured and need to be in place when contracts expired to continue this statutory service.
Background
KCC is a Waste Disposal Authority and has a statutory responsibility to arrange for the disposal of waste collected within is administrative area. Further it must provide places for residents to deposit household waste. These services are currently contract to FCC and CSKL.
Options (other options considered but discarded)
To keep to the original mobilisation period of 6-months. This was rejected due to the increased price implications to KCC.
How the proposed decision supports the Framing Kent's Future - Our Council Strategy 2022-2026
Priority 3 – Environmental Step Change - Continue to work with our commissioning partners to create the infrastructure and jobs that enable us to reprocess waste materials and produce energy within the county, in order to maintain a closed loop local economy
How the proposed decision supports Securing Kent’s Future 2022 -2026: Securing Kents Future - Budget Recovery Strategy.pdf
Objective 2: Delivering savings from identified opportunity areas to set a sustainable 2024/25 budget and MTFP: Contract Review
Decision type: Key
Decision status: For Determination
Notice of proposed decision first published: 23/09/2024
Reason for urgency:
The procurement timetable proposed a mobilisation period of six-months. Feedback from the market is that this is too short a lead-in time for successful bidders to order and take delivery of new fleet to deliver the service. Unless the mobilisation period is extended bidders will need to hire fleet which will increase the cost of the final contract by up to £1.5m based on market feedback. To keep to the original procurement timetable, a decision is needed to issue the SQ.
Decision due: 23 Sep 2024 by Cabinet Member for Environment
Reason: This decision was taken under urgency procedure
Lead member: Cabinet Member for Environment
Lead director: Simon Jones
Department: Growth, Environment & Transport
Contact: Matthew Smyth, Director of Environment and Waste Email: matthew.smyth@kent.gov.uk Email: Matthew.Smyth@kent.gov.uk.
Consultees
There was a confidential briefing for Members of the Environment and Transport Cabinet Committee on 19 September
Financial implications: The current budget for 2024/25 for each contractor is: • FCC £8,507,000pa – 12 sites • Commercial Services £4,837,100 – 5 sites The contract extension will be on existing conditions, rates, and prices. The MTFP includes provision for an inflationary uplift for prices. Extending the contract by 18 months avoids a future unfunded risk for short-term fleet provision and gives budget certainty whilst a full re-tender is taken forward to ensure future contracts continue to meet best value requirements.
Legal implications: Under Section 51 of the Environmental Protection Act 1990, KCC has a duty as the county’s waste disposal authority to arrange for: a) the disposal of the controlled waste collected in its area by the waste collection authorities; b) places to be provided at which persons resident in its area may deposit their household waste and for the disposal of waste so deposited. Legal and Commercial advice is that the contracts can be extended.
Equalities implications: Equalities implications: A the Equalities Impact Assessment has identified positive and negative impact with mitigations to address negative impacts recorded in the assessment. Data Protection implications: There are no data protection implications as no personal information will be processed.