Purpose

To direct award a contract for
the supply of two-wheeled plastic bins and their replacement
parts.

Decision

ROTHERHAM METROPOLITAN BOROUGH COUNCIL

 

RECORD OF OFFICER EXECUTIVE DECISION

 

Date of Decision:

23rd June, 2023

Title:

21-270 Supply of Two-Wheeled
Plastic Bins (including Replacement Parts) – Direct
award

Decision Maker:
(Including Job
Title)

Sam Barstow, Assistant Director, Community
Safety & Street Scene

Specific Delegation:
(If any)

Group delegations and priorities:
 
Under the Sub Scheme of delegation –
Assistant Director Sam Barstow has the delegated responsibility
authorise the direct award of the plastic bins contract
through call off without further competition from
ESPO framework 860_22. In addition, in the absence of Paul Woodcock
as the Strategic Director for Regeneration and Environment, the
Assistant Directors are authorised to make decision on the
Strategic Directors behalf in the context of their service
areas.
 
Some falls under sections:
3-4-7
 
3.       In respect of
procurement, contract        administration and
best value:
 

·                
In accordance with Financial and Procurement
Procedure Rules, matters relating to the specification for works,
goods and services, the seeking of estimates, quotations and
tenders, the evaluation of the same and acceptance of tenders
relating to contracts for works, goods
and services in accordance with approved budgets or supplementary
estimates.

·                
Where a contract for support and maintenance is
renewed within five years of the original contract, authority to
award such a contract.
 
4.       In respect of
in-house service providers:
 

·                
The authorisation of individual
variations.
 
7.       Other functions
 
Any function not otherwise
reserved to the full Council, the Cabinet, a committee of the
Cabinet, a member of the Cabinet, a joint committee discharging
executive functions or another local authority, relevant to the
Assistant Director’s portfolio.
 
Bidding for external funding
and grant aid for both revenue and capital schemes, and their
subsequent implementation.

Brief Description of
Decision:

In
Rotherham, household waste is collected in four waste streams:
glass, cans and plastic recycling, paper and card recycling,
residual waste and a garden waste
service by subscription.  Waste is
collected from the kerbside in two-wheeled plastic bins of
different colours, each corresponding to a different waste
stream.  Households may request new,
additional and replacement bins from the Council, subject to their
eligibility and payment of relevant charges.  Where a damaged bin is returned, the Council may
repair it using replacement parts.

Two-wheeled plastic bins are also used to collect
waste from commercial waste customers, according to the bin
capacities specified in their contracts with the
Council.  It is the Council’s
ambition to increase its share of the local market in commercial
waste, especially amongst small and medium sized enterprises which
are likely to need smaller capacity collections i.e., two-wheeled
plastic bins.
These services help to ensure
the Council meets its statutory obligations under the Household
Waste Recycling Act (2003) and Environmental Protection Act (1990):
to arrange for the collection of household waste and the separate
collection of at least two types of waste which may be composted or
recycled; and if requested, to arrange for the collection of any
commercial waste from premises inside its local authority
area.
 
It is the decision that the
Assistant Director of Community Safety and Street Scene should
award a contract for the supply of two-wheeled plastic bins
(including replacement parts) to IPL Plastics (UK) Ltd, through
call off without further competition from ESPO framework
860_22.
 
The value of the contract is
£1,473,000.

Reasons for the Decision:

A
previous contract was awarded to ONE51 ES Plastics (UK) Ltd,
trading as MGB Plastics, following a further competition exercise
under YPO framework 551 for the supply of plastic wheeled
bins.  This contract expired on 1 July
2022, with no further extension options available after a 4-year
term.

Though MGB Plastics has since joined IPL, a
multi-national plc, as IPL Plastics (UK) Ltd, it retains a local
manufacturing base at the Barbot Hall
Industrial Estate in Parkgate, Rotherham.  MGB Plastics successfully delivered the
Council’s previous contract, which included the roll-out of
pink-lidded bins for residual waste to all households in the
Borough and the provision of brown bins, as a garden waste
subscription service was introduced.

Since the Council’s previous contract expired,
there has been spot purchase of wheeled bins from MGB Plastics to
meet the need for new, additional and replacement bins.  If this continues, the Council will breach the
Public Contracts Regulations (2015) as the total off-contract spend
will exceed the relevant threshold for procurement of
goods.
To abide by The Public
Contracts Regulations (2015) while continuing to deliver its
existing services, the Council must procure a new contract for the
supply of two-wheeled plastic bins.
 
Several framework contracts are
available, including YPO framework 1040 and ESPO framework
860_22.  Given the timescale for
implementation required to meet service needs, call off without
further competition from ESPO framework 860_22 has been identified
as the preferred route to market.
 
Since the preferred route to market is by call off without
further competition from ESPO framework 860_22, there will be no
assessment of tenderers against evaluation criteria, following a
competitive tender.
 
However, to be admitted to ESPO framework 860_22 suppliers have
already been required to demonstrate their adherence to minimum
standards, as well as their competitiveness on price (60%) and
quality (40%).

To identify a preferred supplier under ESPO
framework 860_22, the service has considered the
following:

·       
Price

·       
Social Value (environmental) – distance
travelled in distribution

·       
Social Value (environmental) – relative amount
of virgin and recycled plastic used in manufacture
·       
Social Value (economic) –benefit to the local
economy in jobs and business growth
As service need is very
time-sensitive in the proposed procurement, mobilisation period has
also been considered in the identification of a preferred
supplier.  In connection with this,
prices offered were to be no greater than those paid under the
Council’s previous contract (uprated by CPI inflation), so
the annual value of the proposed contract would not exceed existing
approved budgets and the procurement could proceed within the
authorisations outlined above.

Details of alternative options
considered and rejected:

Several framework contracts are
available, including YPO framework 1040 and ESPO framework
860_22.  Given the timescale for
implementation required to meet service needs, call off without
further competition from ESPO framework 860_22 has been identified
as the preferred route to market. 

Conflicts of interest declared by any
Executive Member consulted by the decision maker which relates to
the decision:

It is confirmed that there are
no known conflicts of interest (personal or financial) with any of
the individuals involved in the development of this business case
and/or the preferred supplier, IPL Plastics (UK) Ltd.

Dispensations Granted:
(If any)

 
N/A

Reports or parts of reports
considered

21-270 Supply of Two-Wheeled
Plastic Bins (including Replacement Parts) – To be
attached

 
I certify that this is a true
record of the executive decision to Supply of
Two-Wheeled Plastic Bins (including Replacement
Parts)
 
Signed by the
Decision Maker Sam Barstow
Dated: 23rd June, 2023
 
Name:  Sam Barstow                                    
Job Title: Assistant Director,
Community Safety & Street Scene