Issue - meetings

Report of the Cabinet Member for Waste, Recycling and Cleansing on Commercial Waste Disposal - appointment of contractor

RESOLVED

(i)         That the tender submitted by Company A be accepted and that they be awarded the contract.

(ii)        That the Director of Community Services be authorised to approve any minor contractual changes during the contract term.

REASON

The contract for disposal of commercial waste was offered to a number of suppliers.  This exercise elicited only one bid. The bid submitted will deliver a significant saving to the Council compared to existing disposal arrangements with West Sussex County Council.

The Cabinet Member for Waste, Recycling and Cleansing reported that the Council currently disposed of commercial (trade) waste collected from businesses across the District.  The waste collected was transported to Burgess Hill Transfer Station which was operated by Viridor Waste Ltd on behalf of West Sussex County Council.  

The disposal costs currently incurred by the Council impacted on the commercial competitiveness of the service.  The Council was not legally bound by any agreement with the County Council as the Waste Disposal Authority.  However, a reasonable period of notice was required to withdraw or amend current arrangements with the County Council and intention of such was made in November 2015.

Soft market testing had been undertaken which had concluded that a tendering exercise was required to secure a disposal tariff set against a range of waste and recycling materials, with preferred options available for selection based on a best price basis.  In addition to this the tender included the need for each supplier to consider any logistical benefits linked to transfer site locations which would offer reduced carbon footprint and minimise transport costs.

The tenders received had now been evaluated and it was recommended that the contract should be awarded to Company A.

The Waste, Recycling and Cleansing Policy Development Advisory Group supported the proposal.

RESOLVED

(i)         That the tender submitted by Company A be accepted and that they be awarded the contract.

(ii)        That the Director of Community Services be authorised to approve any minor contractual changes during the contract term.

REASON

The contract for disposal of commercial waste was offered to a number of suppliers.  This exercise elicited only one bid. The bid submitted will deliver a significant saving to the Council compared to existing disposal arrangements with West Sussex County Council.

Forward Plan item scheduled for Cabinet 22 September 2016.

Members heard that the council disposed of commercial (trade) waste collected from businesses across the district. The waste collected was then transported to Burgess Hill transfer station which was operated by Viridor Waste Ltd on behalf of West Sussex County Council.

For many years the council had incurred higher disposal costs which had impacted on the commercial competitiveness of the service. Horsham District Council was not legally bound by any agreement with West Sussex County Council as the Waste Disposal Authority, however a reasonable period of notice would be required to withdraw or amend current arrangements with West Sussex County Council; intention of such had been made in November 2015.

Soft market testing was undertaken which concluded that a tendering exercise was required to secure a preferable disposal tariff set against a range of waste and recycling materials, with preferred options available for selection based on a best price basis. In addition to this the tender included the need for each supplier to consider any logistical benefits linked to transfer site locations which would offer reduced carbon footprint and to minimise transport costs.

The cabinet would be asked to award a five year contract with a total value of over £250,000 for the disposal of trade waste. The group discussed the draft report to cabinet and considered:

·         The saving offered by the preferred supplier, its location and track record

·         Additional productivity gains, such as fuel savings

·         The potential impact of a change from the existing arrangements

·         Whether the period of the contract could be changed

Officers explained

·         Any financial risk was low and would be outweighed by financial benefits

·         Conversations had been ongoing about the existing arrangements and due notice had been served

·         The period of the contract had been set at the tender stage, and would be subject to review at the appropriate time in the contract

The group commended officers for their work and supported the recommendations to Cabinet.