Agenda item

Cllr Nigel Moor, Cabinet Member for Environment and Planning sought Cabinet approval to conduct a competitive procurement process in respect of up to 28 proposed new Household Recycling Centre (HRC) materials recycling, reuse and recovery services contracts under the council’s existing HRC Dynamic Purchasing System (DPS) and to award such contracts following the completion of such process.

Having considered all of the information, Cabinet noted the report and,

RESOLVED to:

Delegate authority to the Executive Director of Economy, Environment and Infrastructure, in consultation with the Cabinet Member for Environment and Planning to:

1. Use the council’s existing HRC DPS to conduct a competitive

procurement process in respect of the supply of up to 28 contracts for the

provision of recycling, reuse and recovery services as described in

paragraph 1.4 of this report. The proposed contracts shall continue for an

initial period commencing on 1st April 2022 and ending 6th August 2026

and include an option to extend their terms for a further period of not

more than two years.

2. Award such contracts to the preferred tenderers;

3. Determine whether to exercise the option to extend such contracts for a

further period of not more than two years on the expiry of their initial

terms.

Cllr Nigel Moor, Cabinet Member for Environment and Planning sought Cabinet approval to conduct a competitive procurement process in respect of up to 28 proposed new Household Recycling Centre (HRC) materials recycling, reuse and recovery services contracts under the council’s existing HRC Dynamic Purchasing System (DPS) and to award such contracts following the completion of such process.

In 2016 Cabinet gave approval to appoint a teckal company, Ubico Ltd, to operate the Household Recycling Centre (HRC) service. In support of this, it became necessary to bring in house the functions of recycling, reuse and recovery of materials (materials offtake) collected at the HRCs. Subsequently, in January 2017 a Dynamic Purchasing System (DPS) was established under which the County Council has since let up to 28 separate contracts for the offtake of these various materials.

In July 2020 Cabinet approved the continuation of HRC operations with Ubico for a period of 5 years with an option to extend up to a further two years. In support of this decision, there is now a requirement to establish new contracts for materials offtake to commence on 1^st April 2022 following expiry of the current contractual arrangements. The letting of new materials offtake contracts under the existing DPS would provide an opportunity to continue an effective HRC operational service with a range of experienced providers. It would also ensure competition existed between a number of key suppliers in respect of core materials. The duration of these contracts would be synchronised with the duration of the new Ubico operational contract. Depending upon the material type, these contracts would either generate income or operate at a net cost.

 It was anticipated that income levels of between £400k-£500k per year would be generated, with income from the sale of metals making up around half of this. Expenditure on contracts for which a disposal cost was paid was estimated to be around £800k per year, with the cost of the wood recovery contract making up around 60% of this. The net impact of all contracts combined was an overall estimated cost of around £340k per year.

The Leader thanked Cllr Nigel Moor for his service on Cabinet noting that this was his last item.

Having considered all of the information, Cabinet noted the report and,

RESOLVED to:

Delegate authority to the Executive Director of Economy, Environment and Infrastructure, in consultation with the Cabinet Member for Environment and Planning to:

1. Use the council’s existing HRC DPS to conduct a competitive

procurement process in respect of the supply of up to 28 contracts for the

provision of recycling, reuse and recovery services as described in

paragraph 1.4 of this report. The proposed contracts shall continue for an

initial period commencing on 1st April 2022 and ending 6th August 2026

and include an option to extend their terms for a further period of not

more than two years.

2. Award such contracts to the preferred tenderers;

3. Determine whether to exercise the option to extend such contracts for a

further period of not more than two years on the expiry of their initial

terms.