Purpose

Background
Information
 

1.           
At its meeting on 8 November 2022, the Place Committee agreed that
the current South London Waste Partnership (SLWP) led contract for
waste and street cleansing services should not be extended past its
current term, ending in March 2025, and that the Council should
continue to work in partnership with the SLWP to ensure any new
services align with shared transfer and treatment processes.
 

2.           
The haulage and reprocessing of collected dry recyclates in the SLWP partner boroughs is
currently the responsibility of Veolia under that contract.
Therefore successor arrangements are required to ensure that
recyclate material from the SLWP
partner boroughs can still be reprocessed from March 2025.
 

3.           
It was determined the new arrangements for recyclates should be commissioned as a partnership
and procured through Kingston. A number of options were examined
which included bringing the service in-house in part or full,
calling off under an existing framework or running a competitive
tender. The preferred option for the procurement was that the SLWP
should commission these services on behalf of the partner boroughs
by running a competitive tender for the appointment of single or
multiple suppliers. The full options appraisal summary can be found
at Table 1 in Annex 2.
 

4.           
The agreed sourcing strategy was to conduct a competitive procedure
with negotiation for the appointment of a single or multiple
suppliers. Following soft market testing, 12 Lots were developed to
increase market competition and to encourage the most competitive
bids.
 

5.           
Led by the Kingston procurement team, the SLWP Recyclates Haulage, Processing and Sale project was
advertised to the market in September 2023. Tenders were evaluated
on the basis of 60% for Price, 30% for Quality and 10% for Social
Value. The outcome of the procurement process to award 12
contracts, is detailed at Table 2 in section 5 of EXEMPT Annex 1 (exempted from publication) alongside a full
summary of the scores achieved by each bidder at Table 1 in section
5 of EXEMPT Annex 1.
 

6.           
As the costs of hauling, offtake and processing recyclates are currently included in the waste and
street cleansing service contract, the costs associated with these
contract awards are not new costs but will be separated out post
March 2025. As these services have not been managed as a separate
item since 2017, the costs and income will appear as a separate
cost/income line in budgets.
 
Reason for
Urgency
 

7.           
The Council carried out the procurement process on behalf of the
SLWP, with tenders returned in December 2023. The other three SLWP
boroughs have approved the recommended awards. The decision was due
to be taken by the Place Committee on 20 June 2024.
 

8.           
However, the meeting has now been cancelled due to the General
Election and rescheduled for 17 July 2024. In order to ensure the
market remains interested in the opportunity and does not withdraw,
the goal is to complete the award process as soon as possible and
in advance of the rescheduled committee date. This will align our
position with the other SLWP boroughs and enable the Council, as
the Contracting Authority, to complete the procurement process
within a reasonable tender validity period (6 months).

Content

In line with the outcome of the procurement
process, 12 contracts for the haulage, processing and sale of
recyclate material for the South London
Waste Partnership (SLWP) be awarded to the successful bidders (as
set out at Table 2 in section 5 of EXEMPT Annex 1
(exempted from publication)) for a period of 3 years from 1 April
2025, with the option to extend by mutually agreed periods up to a
further 4 years at an estimated total contract value up to
£14.5m.