Somerset County Waste and Recycling Services

Concepts

• refuse recycling
• taunton
• somerset county waste
• recycling services
• somerset waste partnership
• waste collection
• biodegradable municipal waste
• somerset county waste and recycling services
• project management services
• waste collection and recycling services for somerset waste partnership

Location

TAUNTON

Description

Somerset County Council ("Council") awarded a contract to Suez Recycling and Recovery Limited ("Suez") in March 2020 following a procurement for project management services for the delivery of Waste Collection and Recycling Services for Somerset Waste Partnership formed by the County Council and District Councils. Council's municipal waste strategy and its landfill directive obligations to divert biodegradable municipal waste from landfill (the "Contract"). The procurement was advertised in OJEU Contract Notice (2004/S 174368-201).

Ammendments to Previous Notice

Award Detail

CPV Codes

• 90514000 - Refuse recycling services

Indicators

• Contract modified due to unforeseen circumstances.

Legal Justification

Increase in the value of the contract in excess of the permitted tolerance. There have been a several commercial challenges since the start of the contract including Covid, and national driver shortages. Consequently, SUEZ have also disclosed significant losses on the contract, to the extent it has become unviable. SUEZ have advised that without a formal variation to the contract to increase payments, they will consider renouncing the contract. This would mean walking away from the contract, withdrawing all services and accepting the contractual consequences of paying the Council damages that arise (subject to contractual caps). The Council considers that it is essential to increase the value of the contract over its remaining term by £47,000,000 as a one of final settlement in order to make the contract viable for the supplier over the remainder of its term, and so protecting a statutory public service. Other options have been considered but it is considered that these are more expensive for the Authority or represents a greater risk. The modification does not alter the overall nature of the contract, which remains for the collection and recycling of waste in Somerset and continues to reflect the successful transition to "Recycle More". The increase in price is below 20% of the original (as-awarded) contract value for the initial 10 year term and so does not exceed (and is significantly less than) 50% of the value of the original contract.