Purpose

Proposed
Decision:
 

1.   
APPROVE the procurement and contract award of an organic waste
contract for an initial 5 years, (plus an extension of up to 5
years) commencing 1st April 2026;

2.   
DELEGATE authority to the Director of Environment and Circular
Economy to take relevant actions to facilitate the required
procurement activity;

3.   
DELEGATE authority to the Director of Environment and Circular
Economy in consultation with the Cabinet Member for Environment, to
take relevant actions, including but not limited to, awarding,
finalising the terms of and entering into the relevant contracts or
other legal agreements, as necessary, to implement the decision;
and

4.   
DELEGATE authority to the  Director of
Environment and Circular Economy in consultation with the Cabinet
Member for Environment to award extensions of the contract in
accordance with the relevant clauses within the contract.
 

Reason for the decision
KCC
currently has in place contractual arrangements that are due to
expire 31st March 2026, and therefore is
seeking new contractual arrangements from 1st April
2026, for the processing of Organic Waste currently collected by
the Waste Collection Authorities and at the Household Waste
Recycling Centres (HWRCs) across Kent.

 
Background

-     
As the Waste Disposal Authority, KCC has a statutory
responsibility for the processing of organic waste collected by
Borough and District Councils (known as the Waste Collection
Authorities) from households at the kerbside, and from deposits at
HWRCs across the County by residents.

-     
The commission will be presented in three lots and
procured via a competitive procurement process under
the Procurement Act 2023 and will include the provision for
managing circa 95,000 tonnes per annum.

-     
The contract will be for an initial period of 5
years, with an option to extend up to a further 5 years. This
timeframe is intended to ensure a reliable and consistent statutory
service during the Local Government Reform transition
period.

-     
The extension will be considered based on
performance and value for money, in accordance with "Securing
Kent’s Future" and will be assessed through a benchmarking
exercise conducted 18 months before the extension clause is
activated.

-     
The procurement will be compliant with the
Procurement Act 2024.

-     
The contract will ensure that providers adhere to
environmental legislation and permitting requirements and best
practice is delivered
 
Options (other options considered but discarded)

-     
Option 1 - Do nothing – the
current arrangements will cease and KCC will be unable to accept
the waste - this is
not an option due to KCC’s obligation to receive this
material under waste legislation and dispose of it as per the
Environmental Protection Act 1990.

-     
Option 2 - Continue to accept the waste
but utilise alternative disposal options by using landfill or
incineration - This is not an option as
there is a desire and obligation to move material up the waste
hierarchy where possible, and to meet recycling and landfill
diversion targets. Furthermore, to send this material to
incineration would be extremely costly against a treatment
option.

-     
Option 3 - Extend for a further period
- This is not favoured, as all organic
contracts have been extended previously to align to one end date
giving the opportunity to produce economies of scale when a full
county re-procurement is undertaken. Three contracts do not have an
available compliant extension option.

-     
Option 4 – Commence a full
procurement exercise (recommended option) before the end of the
contracts – This is the preferred
option and provides sufficient time to undertake a full
commissioning activity before 1st April 2026, and to
secure a provider/s who can treat and utilise the waste material
meeting the circular economy desired outcomes.

 
How the proposed decision supports the

Framing Kent's Future
- Our Council Strategy 2022-2026

·        
Priority 3: Environmental step
change: Continue to work with our
commissioning partners to create the infrastructure and jobs that
enable us to reprocess waste materials and produce energy within
the county, in order to maintain a closed loop local
economy.
 
How the
proposed decision supports Securing Kent’s Future 2022
-2026:
Securing Kents Future
- Budget Recovery Strategy.pdf

·        
Objective 2: Delivering savings from identified opportunity areas to set a
sustainable 2026/27 budget and MTFP: Contract Review and delivery
of best value.
 

Decision

As Cabinet Member for (the
Kent) Environment I agree to:
 
(i)            
APPROVE the procurement and contract award of an
organic waste contract for an initial 5 years, (plus an extension
of up to 5 years) commencing 1st April 2026; 

 
(ii)           
DELEGATE authority to the Director of Environment
and Circular Economy to take relevant actions to facilitate the
required procurement activity;
 
(iii)         
DELEGATE authority to the Director of Environment
and Circular Economy in consultation with the Cabinet Member for
Environment, to take relevant actions, including but not limited
to, awarding, finalising the terms of and entering into the
relevant contracts or other legal agreements, as necessary, to
implement the decision; and
 
(iv)         
DELEGATE authority to the Director of Environment
and Circular Economy in consultation with the Cabinet Member for
Environment to award extensions of the contract in accordance with
the relevant clauses within the contract; as shown at Appendix
A.