Contract for the Treatment of Post 2020 Residual Waste

A Contract Award Notice
by LEICESTERSHIRE COUNTY COUNCIL

Source
OJEU
Type
Contract (Services)
Duration
8 year (est.)
Value
£150M-£650M
Sector
ENVIRONMENT
Published
28 Oct 2022
Delivery
To 28 Oct 2030 (est.)
Deadline
n/a

Concepts

Location

Glenfield

Geochart for 2 buyers and 1 suppliers

2 buyers

1 supplier

Description

Contract for the Treatment of Post 2020 Residual Waste

Total Quantity or Scope

The contract is for the treatment of residual waste. The contract will be primarily for residual waste arising within Leicestershire but may include waste that arises from other Waste Disposal Authorities. The potential total contract value could therefore vary from between 150 000 000 GBP to 650 000 000 GBP over the potential twenty five year period and subject to the total tonnage treated. Leicestershire currently manages household waste through a two-tier authority system with seven Waste Collection Authorities (WCAs) and one Waste Disposal Authority (the Council). The procurement for the Treatment of Post 2020 Residual Waste was run by Competitive Dialogue process with 3 stages of dialogue. Stage 1 ISOS 70% Quality 30% Price Stage 2 ISDS 50% Quality 50% Price Stage 3 ISTF 30% Quality 70% Price The contract has a minimum duration of 8 years but with the option for the Council to extend by periods of one or more years to a maximum of 25 years.

Award Detail

1 Biffa Waste Services (High Wycombe)
  • Treatment of Post 2020 Residual Waste
  • Num offers: 2
  • Value: £150,000,000.0-£650,000,000

Award Criteria

Quality 70.0
PRICE 30.0

CPV Codes

  • 90500000 - Refuse and waste related services
  • 90510000 - Refuse disposal and treatment
  • 90513000 - Non-hazardous refuse and waste treatment and disposal services

Indicators

  • Award on basis of price and quality.

Other Information

This contract opportunity was published in the OJEU by way of a Contract Notice on 9 July 2019 (ref 2019/S 130-319454). The contract entered into with the winning supplier is within the scope of the above Contract Notice. As set out in more detail below, the Council and the Contractor agreed to some modifications to the contract prior to contract signature. The agreed modifications fall within the scope of negotiations that are permitted in accordance with Regulation 30(20) of the Public Contracts Regulations 2015 (PCR 2015). The Council has agreed to remove the restriction on the indexation mechanism which limited the contractual annual price increase to no more than 3%. This is balanced by a right for the Council to assess the cost viability at specific points during the contract before the end of the minimum term of the contract (2031) using a benchmarking process and subsequently either: 1. reduce the rate per tonne; or 2. lower the tonnage guaranteed by the Council by up to 20,000 tonnes per annum; or 3. terminate the Contract earlier than 2031. This change reflects the fact that the current economic circumstances (in which the contract is being signed) are very different compared to those that were present at the time the procurement was advertised and dialogued. Whilst a rise in indexation was possible, the present global circumstances have caused inflation to increase to a degree that was unforeseen. Under Regulation 72(1)(c) a modification can be made as a result of circumstances which a diligent contracting authority could not have foreseen. The modification does not alter the overall nature of the contract and any increase in price does not exceed 50% of the value of the original proposed contract. In addition to the above the following changes have been made to the Contract: • The guaranteed annual tonnage under the contract has been amended to 40,000 from the 45,000 tonnes as advertised in the OJEU Notice which is an insubstantial reduction that gives the Council additional flexibility. • One element of the Secondary Waste Types has been reclassified as a Primary Waste Type (shredded non-size limited) which will create costs savings for the Council. • The contract commencement date remains between 01/04/2021 and 01/04/2023 as advertised but during this period there will be a commissioning period whereby a limited amount of waste is due to be delivered to Contractor’s facility. These changes are to the benefit of the Council, do not materially modify essential aspects of the tender or the procurement and do not risk distorting competition or causing discrimination.

Reference

Domains