The Sustainable Communities Overview and Scrutiny Panel met on Monday 11 November 2024 to review the proposed award of the council's Recycling and Waste Collection Services contract. The panel discussed the detailed report recommending the contract award to 'Bidder A' and considered the implications for service delivery and resident satisfaction.

Recycling and Waste Collection Services Contract Award

The panel reviewed the report recommending the award of a new eight-year contract for Recycling and Waste Collection Services, with options to extend for a further sixteen years. This contract, set to commence on 1 April 2025, aims to improve service delivery, future-proof collections against upcoming legislation, and support the council's environmental commitments, including a target of a 65% recycling rate by 2030. The report detailed the extensive procurement process, which involved a Competitive Procedure with Negotiation (CPN), and highlighted that 'Bidder A' was selected as offering the best value.

Key aspects of the new contract include:

• Service Enhancements: The specification addresses resident feedback from a 2022 consultation, aiming to improve issues such as missed collections and bin returns. There will be no reduction in the frequency of current kerbside collections, and increased frequency for communal bins on larger estates. A new weekly food waste collection service for flats above shops is also being introduced.
• Decoupling Services: This procurement is part of a wider strategy to decouple waste collection services from street cleansing. While waste and recycling collections will be contracted out, street cleansing services will be brought in-house.
• Contract Duration and Extensions: The initial contract term is eight years, with two optional eight-year extensions, potentially leading to a 24-year contract. An options appraisal will be conducted during year five to inform decisions on future service delivery models.
• Gully Cleaning Transfer: The gully cleaning service, currently part of the South London Waste Partnership (SLWP) contract, will be transferred to FM Conway via a contract variation.
• Commercial Waste: The contract will see the contractor manage all aspects of commercial waste services, with the council receiving a percentage of the gross value rather than a guaranteed income.
• Fleet and Depot Improvements: The council is investing significantly in new depot facilities, waste transfer enhancements, and decarbonising its fleet, with a plan to decarbonise the contract fleet by 2030.
• Performance Management: A robust Performance Management Framework (PMF) with Key Performance Indicators (KPIs) and Key Service Objectives (KSOs) will be implemented to monitor contractor performance, with financial deductions applied for failures. This includes specific KPIs for missed collections, quality of service delivery, and spillages.
• Governance Structure: A new Partnering Governance Framework will be established, involving several boards including a Strategic Partnership Board and a Service Operations Board, to ensure effective contract management and collaboration.
• Social Value: Social Value commitments, accounting for 5% of the evaluation, will be a key part of the contract, focusing on jobs, growth, social outcomes, and environmental well-being.

The report concluded that awarding the contract to 'Bidder A' is the recommended option, as it provides best value and is unlikely to result in legal challenges due to the compliant procurement process. The decision on the contract award will be made by the Cabinet on 16 December 2024.