Decision details

Reason for the decision

·       KCC currently has in place contractual arrangements that are due to expire 30^th September 2023, and therefore is seeking new contractual arrangements for the processing of dry recyclable material currently collected by Dover District Council, Folkestone & Hythe District Council, Thanet District Council, Tonbridge & Malling Borough Council and Tunbridge Wells Borough Council.

Background

·       As the Waste Disposal Authority, KCC has a statutory responsibility for the processing of dry recyclables collected by a number of Borough and District Councils from households at the kerbside.

·       Waste Management currently operates a contract with Veolia ES (UK) Ltd for the processing ofdry recyclables which totals c.26,500 tonnes per annum, based on 22/23 outturn.

·       The waste is currently transported to the Veolia Rainham MRF for processing and recycling.

·       The current Veolia contract completes on the 30^th September 2023, as such, the commissioning process is underway using the ESPO (Eastern Shires Purchasing Organisation) Framework.

·       This commissioning ensures continuity of service in respect of the acceptance of these waste materials collected by the Waste Collection Authorities.

·       Due to the impending changes in legislation, KCC considers it prudent to only award this contract for a period of up to 48 months to account for any future changes that may impact the type of materials collected.

·       Alternative suppliers through this framework are at a substantial distance from Rainham and are therefore cost-prohibitive due to the added haulage burdens to transport these recyclable materials.

Options

1.    Do nothing – the current contracts will elapse, and recycling will be diverted to Allington Energy from Waste facility for incineration. This is not an option as KCC as the Waste Disposal Authority has a statutory obligation to use the waste hierarchy to process waste, where recycling is placed higher than energy recovery.

2.    Discontinue accepting the dry recyclables at the Transfer Stations via the Collection Authorities – 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.

3.    Undertake a commissioning activity to procure a new contract - The current Contract was awarded under the ESPO Framework (Eastern Shires Purchasing Organisation) which is a route to market via ‘call off without competition’ i.e. direct award. KCC is looking to undertake commissioning via the same route rather than a competitive procurement process due to the limited market available for this material type and the associated demand on facilities.

Preferred Option

·       Option 3 is the preferred option. The Authority is seeking to appoint a provider for an initial term of up to 48 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 process dry recyclables.

The commission of this contract will meet KCC’s Strategy – Framing Kent’s Future 2022 – 2026 one of the four key priorities:

·       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

As Cabinet Member for Environment, I agree

a)    to the award of a new contractual arrangement for the processing of dry recyclables for Dover District Council, Folkestone & Hythe District Council, Thanet District Council, Tonbridge & Malling Borough Council and Tunbridge Wells Borough Council, for a period of up to 48 months and;

b)    to delegate authority to the Director for Environment and Circular Economy to take other relevant actions, including but not limited to finalising the terms of and entering into required contracts or other legal agreements, as necessary to implement the decision.