Purpose

To agree the award of our Dry Mixed Recycling
contract.

Decision

Approve the award of contract for the
transportation, processing and onward sale of Dry Mixed Recycling
(DMR) to Tenderer A named in the Exempt Part 2 report for an
initial period of 2 years with option to extend for a further 12
months at a time, up to a maximum term of 5 years (2+1+1+1), at
total awarded contract value of up to £1.250m.

Reasons for the decision

The Council manages the recycling contract for the
dry mixed recycling it collects from households and some schedule 2
businesses (Schools & charity shops) in the borough. The
Council’s existing contract is nearing the end of its term
and as a statutory service, there is a requirement to ensure
continuity of service is maintained to transport, process and
onward sell the material that we collect which is an expenditure to
RBBC.

There was a requirement to undertake a competitive
procurement exercise in line with the Procurement Act 2023, to
appoint a Provider for the new proposed contract term of an initial
period of 2 years with an option to extend for a further 12 months
at a time, up to a maximum term of 5 years (2+1+1+1).

Alternative options considered

Option 1 – (Recommended)

1.       
To approve the award of contract to the Party named in the Exempt
Part 2 report (Tenderer A) to enable the continuation of the
statutory service for the provision of recyclate materials.

Option 2 -

2.       
Not to approve the award of contract. 
RBBC has a statutory requirement to collect recyclable household waste and send it to recycling
or composting. Having no service provider for our DMR would
mean:
·      
Potential breach of our statutory obligations to
collect and send material to recycling impacting the
Council’s reputation and financial implications. 
·      
If the lack of service provision occurs, then our
budgeted income from SCC recycling credits and Defra EPR payments
would be at risk.
·      
Have to enter into a spot price market for a DMR
processing agreement with a supplier (if we could secure one) with
inflated prices for not being in contract. This would put at risk
our budgeted expenditure.
·      
RBBC could not store the material at the Earlswood
depot, as we don’t have planning permission or a valid
Environmental Permit from the Environment Agency for the storage of
such material.
·     
The worst-case scenario, we have to dispose of the
mixed recycling as general waste, which would significantly harm
our reputation as a council.

·     
We’d not be compliant with our own policies
and in accordance with the Procurement Act 2023, the Council would
be obligated to publish a procurement termination notice. This
informs the market that the Council has decided not to award the
contract due to for example, the requirement no longer exists and
procurement process disbanded.