Background:
KCC Waste Management are looking to extend the following two contracts for further 12 month periods under the Procurement Policy Note 01/20: Responding to COVID-19 which states that where there is an urgent requirement for goods, services or works due to or responding to the impact of COVID-19, procurement is permissible under Public Contract Regulations 2015 (PCRs) using regulation 32(2)(C):
• West & Mid Kent Dry Recyclable Processing Contracts Lots 1 & 2 (ref. SS15105) with Viridor Waste Management Limited, for the processing of household recyclable materials that are collected kerbside from seven Waste Collection Authorities within Kent: Maidstone, Swale, Dartford, Gravesham, Sevenoaks, Ashford and Tonbridge & Malling. The Contract commenced 4th July 2016 and following the extension periods specified within the Contracts are due to end 3rd July 2020. KCC Waste Management is looking to extend these Contracts to 3rd July 2021 with the agreement of Viridor Waste Management Limited.
• Contract for the Processing & Recycling of Wood Waste 2020 (09/23) with Countrystyle Recycling Limited had an initial term of 5 years with an option to extend for a further 5 years which was invoked. The original contract commenced 4th October 2010 and following the extension period is due to end 14th November 2020. KCC Waste Management are looking to extend the Contract to 14th November 2021 with the agreement of Countrystyle at a reduced gate fee.
Original Records of Decision expire the cessation of the original contracts, as such a new decision needs to be made. Expected expenditure remains within budget on both contracts.
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 no arrangement in place.
2. Extend the existing arrangements under the current contracts’ terms and conditions to fulfil the Statutory duty of KCC operating under the Environmental Protection Act 1990, to dispose of collected municipal waste.
The 2nd option is necessary due to the existing contracts being satisfactory and performing well and to allow KCC time to undertake full Procurements of both waste materials to ensure that the best outcomes are reached for Kent residents, whilst dealing with the Challenges and pressures due to the Covid-19 Pandemic.
Decision type: Key
Reason Key: Expenditure or savings of more than £1m;
Decision status: Recommendations Approved
Notice of proposed decision first published: 16/06/2020
Anticipated restriction: Part exempt - View reasons
Decision due: Not before 15th Jul 2020 by Cabinet Member for Environment
Reason: In order that the proposed decision can be published for a minimum of 28 days in accordance with statutory requirements
Lead member: Cabinet Member for Environment
Lead director: Simon Jones
Department: Growth, Environment & Transport
Contact: Kay Groves 03000 411642 Email: kay.groves@kent.gov.uk.
Consultees
Cabinet Committee Members were engaged via email in advance of this decision being published and all comments received were duly considered by the Cabinet Member.
Financial implications: Across both contract extensions, there is sufficient budget to fund the service. The terms of contract remain the same and costs mechanisms for the two Contracts extensions remain: West & Mid Kent Dry Recyclables Processing Contract - 12 months, the gate fees remain as priced by the original tender Contract for the Processing & Recycling of Wood Waste 2020 -12 months the contract price has been reduced to, by agreement with the Supplier through a reduced gate fee which will realise modest savings for the Authority Specific prices are commercially sensitive, particularly as the Authority intends to recommission these services in the short term. The total cost for the two Contract extensions is £3,225,000 for the period of the annual extension, both within budget.
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.
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.