Neighbourhood, Environment and Communities Cabinet Member – Minutes – 12 May 2010

90 (1) PROCUREMENT OF ORGANIC WASTE TREATMENT FACILITY – The Service Director Neighbourhood and Environment submitted an urgent report to obtain approval to withdraw from the procurement exercise in respect of organic waste treatment facilities, and also to obtain approval to commence a procurement exercise for interim organic waste treatment.

Existing contracts for the delivery of waste management services for the council terminated on 31 March 2011.  The council had decided to procure separate contracts for recycling services including management of household recycling centres and for treatment and disposal of residual and organic wastes.

At its meeting of 11 March 2009 Cabinet (minute 796 refers) approved the procurement strategy. A Contract Notice was issued on 19 March and the contract was advertised in two lots; Lot 1 for residual waste and Lot 2 for organic waste.

The Lot 2 submissions that were received at the Invitation to Submit Detailed Solution (ISDS) stage were assessed in accordance with evaluation criteria previously approved and published. In terms of financial impact, the assessment of the Bids showed them to be in excess of the council’s affordability criteria, particularly in the early years of the prospective contract.

Although the existing arrangements were due to expire on 31 March 2011, there was the potential to procure short-term interim arrangements for treatment of organic wastes based upon a low technology lower cost solution. This would require the existing procurement to be cancelled in respect of Lot 2.  The published procurement documentation enabled the council to withdraw from the procurement at any stage, for any reason. The decision was of an urgent nature to allow for the existing procurement to be formally terminated which would enable the interim procurement to commence.  This needed to happen at the earliest opportunity to have arrangements in place on 1 April 2011 or as soon as practicable thereafter.

Resolved – (a) That the council cancels the existing procurement exercise for the treatment of organic wastes, and (b) that the council embarks upon a new procurement exercise for the treatment of organic wastes in the short-term, such contract to commence on 1 April 2011, or as soon as practicable thereafter, for a period of two years with an option to extend.