Proposed Decision:
1. APPROVE the procurement and contract award of an organic waste contract for an initial 5 years, (plus an extension of up to 5 years) commencing 1st April 2026;
2. DELEGATE authority to the Director of Environment and Circular Economy to take relevant actions to facilitate the required procurement activity;
3. 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
4. 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 31st March 2026, and therefore is seeking new contractual arrangements from 1st April 2026, for the processing of Organic Waste currently collected by the Waste Collection Authorities and at the Household Waste Recycling Centres (HWRCs) across Kent.
Background
- As the Waste Disposal Authority, KCC has a statutory responsibility for the processing of organic waste collected by Borough and District Councils (known as the Waste Collection Authorities) from households at the kerbside, and from deposits at HWRCs across the County by residents.
- The commission will be presented in three lots and procured via a competitive procurement process under the Procurement Act 2023 and will include the provision for managing circa 95,000 tonnes per annum.
- The contract will be for an initial period of 5 years, with an option to extend up to a further 5 years. This timeframe is intended to ensure a reliable and consistent statutory service during the Local Government Reform transition period.
- The extension will be considered based on performance and value for money, in accordance with "Securing Kent’s Future" and will be assessed through a benchmarking exercise conducted 18 months before the extension clause is activated.
- The procurement will be compliant with the Procurement Act 2024.
- The contract will ensure that providers adhere to environmental legislation and 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 receive this material 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 or incineration - This is not an option as there is a desire and obligation to move material up the waste hierarchy where possible, and to meet recycling and landfill diversion targets. Furthermore, to send this material to incineration would be extremely costly against a treatment option.
- Option 3 - Extend for a further period - This is not favoured, as all organic contracts have been extended previously to align to one end date giving the opportunity to produce economies of scale when a full county re-procurement is undertaken. Three contracts do not have an available compliant extension option.
- Option 4 – Commence a full procurement exercise (recommended option) before the end of the contracts – This is the preferred option and provides sufficient time to undertake a full commissioning activity before 1st April 2026, and to secure a provider/s who can treat and utilise the waste material meeting the circular economy desired outcomes.
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 2026/27 budget and MTFP: Contract Review and delivery of best value.
Decision type: Key
Decision status: Recommendations Approved
Notice of proposed decision first published: 07/07/2025
Decision due: Not before 5th Aug 2025 by Cabinet Member for Environment
Reason: To allow 28 day notice period required under Executive Decision regulations
Lead member: Cabinet Member for Environment
Lead director: Matthew Smyth
Department: Growth, Environment & Transport
Contact: Kay Groves Email: kay.groves@kent.gov.uk.
Consultees
The proposed decision was considered and endorsed by the Environment and Transport Cabinet Committee on 17th July.
Financial implications: This procurement cost will be met by existing revenue budgets currently £5.2m (25/26). Inflationary increases are built into the MTFP each year, based on forecasts of inflation indices for the month of uplift. Assumptions have been made that inflation indices will be applied and an MTFP uplift of £220k will be requested for 26/27 to cover price inflation. Tonnage will also increase slightly in line with growth for commencement of the contract in April 2026, resulting in:- - An estimated cost for 2026/27 of £5.42m - A forecasted budget 2026/27 set at £5.42m - KCC will actively seek to spend less than the forecasted costs by negotiating during commissioning, leveraging competitive pricing, efficient service delivery, and providing opportunities for benefits of economies of scale - Haulage costs are accounted for within the HWRC and Transfer Station contracts and will be based on the proposed lotting strategy, with route optimisation and cost benefits
Legal implications: • A key function of the Waste Disposal Authority operating under the Environmental Protection Act 1990, is to provide outlets for the processing of organic/green waste. • 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. It sets targets for recycling rates and requires Councils to implement measures to achieve these targets. • Simpler Recycling legislation requires separate weekly food waste collections from kerbside, which can be combined with garden waste, starting from March 31st, 2026.
Equalities implications: Equalities implications • An Equality Impact Assessment has been carried out and as this is not a public facing service there is no potential for discrimination. No Protected characteristics are negatively impacted. Data Protection implications • A Data Protection Impact Assessment (DPIA) screening was undertaken and it concluded that due to the fact that no personal data is handled or stored, (employee or service user), no further assessment is required.