Purpose

Proposed
decision
(a) 
APPROVE the procurement and contract award of a wood
waste processing contract for an initial 5 years (plus an extension
of up to 2 years);

 
(b) 
DELEGATE authority to the Director of Environment
and Circular Economy to take relevant actions to facilitate the
required procurement activity;
 
(c) 
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
 
(d) 
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 14th November 2026, and therefore is
seeking new contractual arrangements from 15th November
2026, for the processing of wood waste currently collected at the
Household Waste Recycling Centres (HWRCs) and by the Waste
Collection Authorities across Kent.
 
Background

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

-     
An existing wood processing contract is due to
expire on 14th November 2026, and this procurement seeks to
establish new countywide contractual arrangements from
15th November 2026. A lead-in time is necessary to allow
for the development of a detailed and fit-for-purpose service
specification, negotiations and mobilisation, as well as to ensure
all internal governance and approval processes are completed ahead
of issuing the full tender.

 

-     
The commission will be offered as a single
County-wide contract and procured via a competitive
procurement process under the Procurement Act 2023
and will include the provision for managing
circa 25,000 tonnes per annum.

-     
The contract will be for an initial period of 5
years, with an option to extend up to a further 2 years (and
incorporates a break clause in 2028). This timeframe and approach
is intended to ensure a reliable and consistent statutory service
during the Local Government Reorganisation transition
period.

-     
The extension will be considered based on
performance and value for money and will be assessed through a
benchmarking exercise conducted 18 months before the extension
clause is activated.

-     
The contract will ensure that providers adhere to
environmental legislation, 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 manage controlled waste 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 -
This is not a viable option. KCC has a legal
obligation to manage waste in accordance with the waste hierarchy,
which prioritises recycling over disposal. Sending wood to landfill
would not only undermine the Council’s recycling and landfill
diversion targets but would also result in a significant financial
burden.

 

-     
Option 3 - Extend for a further period
- This is not legally possible, as the
wood contract has been extended within the parameters of the
existing contracts. 

 

-     
Option 4 – The Recommended Option: Commence
a full procurement exercise. This is the
preferred option and provides sufficient time to undertake a full
commissioning exercise before 15th November 2026, and to
secure a provider who can treat and utilise the waste material
meeting the circular economy desired outcomes.

 
How
the proposed decision supports the KCC Strategic
Statement
 

·  
We will ensure there is an effective waste
management and recycling service that is value for money and
improves rates of recycling through a simpler and efficient
process.
 

Financial Implications

-     
This is a revenue-based contract.

-     
The budget for 2025/26 is £907,100 based on
budgeted tonnes of 22,335.

-     
The proposed budget for 2026/27 is £940,600
based on budgeted tonnes of 22,727

-     
Actual tonnes processed in 2024/25 were 24,896.43,
therefore the estimated value of this contract is based on
receiving 25,000 tonnes per annum.

-     
Tonnage has been consistent over the last 3 years of
the contract and therefore, 25,000 tonnes is a realistic annual
estimation.

-     
Annual costs of the contract are calculated on
25,000 tonnes multiplied by an average gate fee (uplifted by
indexation in November 2025) = £1.035m

-     
Any tonnage fluctuation above or below the budget
will be managed as part of the monthly financial monitoring
process.

-     
Haulage costs are accounted for within the HWRC and
Transfer Station contracts.

-     
If the most economically advantageous compliant
tender exceeds the available budget, and there is limited scope to
reduce costs due to the operational nature of the service, this
would result in an in-year financial pressure.
 
Legal
Implications  
 

-     
A competitive procurement process will be carried
out under the Procurement Act 2023, which meets the obligations on
transparency, fair treatment and best value.

-     
The Waste Framework Directive (2008/98/EC) sets the
basic concepts and definitions related to waste management,
including the principles of the waste hierarchy. It requires
Councils to take measures to encourage the separation and recycling
of waste.

-     
The Circular Economy Package includes several
directives aimed at promoting recycling and reducing landfill usage
(Note: KCC currently at less than 1%). It sets targets for
recycling rates and requires Councils to implement measures to
achieve these targets.

-     
Due to the forthcoming Local Government
Reorganisation, it is anticipated that the contract will be novated
to the successor authority or authorities, depending on how the new
governance structures are established.

-     
Schedule 1 of The Controlled Waste Regulations 2012
classifies waste arising from construction or demolition, including
preparatory work as Household Waste (as defined under the
Environmental Protection Act 1990). This classification includes
wood waste. KCC has an obligation to recycle or recover this under
the legal requirements of the Waste Hierarchy which is set out in
the Waste (England and Wales) Regulations 2011.
 

Decision

As Cabinet Member for (the Kent) Environment,
I agree to: 
 
(i)   
APPROVE the procurement and contract award of
a wood processing contract for an initial 5 years (plus an
extension of up to 2 years),
 
(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 Corporate Director of Growth, Economy and Transport, in
consultation with the Cabinet Member for (the Kent) 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 Corporate Director of Growth, Economy and Transport in
consultation with the Cabinet Member for (the Kent) Environment, to
award extensions of the contract in accordance with the relevant
clauses within the contract.