Award

Essex Waste Management Partnership Residual Waste Treatment Contract

ESSEX COUNTY COUNCIL

This public procurement record has 1 release in its history.

Award

16 Mar 2022 at 12:01

Summary of the contracting process

Essex County Council is seeking to modify the contract for the Essex Waste Management Partnership Residual Waste Treatment Contract, which includes essential works at the Tovi Eco-Park in Basildon, Essex. The procurement process is currently at the Award stage, having been completed on 31 May 2012, with amendments proposed due to litigation concerning the initial contract execution. The contract, valued at £9,900,000, is anticipated to have an extended term until 2040, focusing on demolition, site clearance, and construction works related to a mechanical biological treatment facility.

This opportunity is particularly relevant for businesses in the demolition, engineering, and environmental services sectors. Companies specialising in civil engineering, site preparation, and waste management could find growth potential by engaging in the upcoming modifications and related works necessary for the redevelopment of the site. With the complexities surrounding the settlement agreement and environmental restoration, there is a significant scope for competent contractors to offer their expertise and contribute to the successful completion of the project.

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Notice Title

Essex Waste Management Partnership Residual Waste Treatment Contract

Notice Description

The purpose of this Voluntary Ex-ante Transparency Notice is to inform the market of the additional works / services to be performed by UBB Waste (Essex) Limited following the amendment of its contract with the Authority for the design, construction, commissioning operation and handback of a mechanical biological treatment (MBT) facility at the Tovi Eco-park (Basildon, Essex). The facility in question did not pass the acceptance tests specified in the contract which led to the Authority seeking to terminate the contract as well as commencing litigation against the contractor. The Authority has given notice that it is proposing to take a decision to enter into an Amendment and Settlement Agreement to settle that litigation and to amend the handback requirements of the contract on the basis that the site will be cleared and returned to ECC in a condition that will allow for its future redevelopment. It is expected that the modified contract will have a term expiring in 2040. These additional works / services are essential to restore the pre-contractual position and, to the extent that they are not or may not be encompassed by the terms of the original contract, they form an integrated part of a planned settlement agreement between the Authority and the contractor to draw to a conclusion the litigation between the parties.

Lot Information

Lot 1

11.2.4) Description of the procurement: The Contract was awarded on 31 May 2012 to UBB Waste (Essex) Limited, following the completion of a full tender process. The contracted works and services were for the design, construction, commissioning, handback and operation of a mechanical biological treatment (MBT) facility in the Tovi Eco-Park (Basildon, Essex). Following the initial construction of the facility, the contract provided for a commissioning period followed by Acceptance Tests to confirm that the facility could meet the performance requirements in the contract. If not ultimately passed by an Acceptance Longstop Date of 12 January 2017, the Authority was entitled to terminate the Contract. The facility did not pass the Acceptance Test by the Acceptance Longstop Date, which resulted in the Authority commencing litigation against the contractor. The Authority has given notice that it is proposing to take a decision to enter into an Amendment and Settlement Agreement to settle that litigation and to amend the handback requirements of the contract on the basis that the site will be cleared and returned to ECC in a condition that will allow for its future redevelopment. It is expected that the modified contract will have a term expiring in 2040. More specifically, the contractor shall: - Demolish the MBT facility to ground slab level. - Surrender the Environmental Permit which relates to the operation of the MBT facility and is held by Urbaser Environmental Limited. - Remove certain hazardous substances from the site and hand back the site in accordance with the conditions in the Amendment and Settlement Agreement, to the satisfaction of an independent environmental consultant. - Remove certain plant and equipment from the MBT facility prior to its demolition. - Design and build a new surface water management system for the site. This includes re-grading part of the site and installing new surface water retention structures. - Install new sections of security fencing for the site. - Arrange for the de-energisation of the UKPN electrical sub-station and install a new power supply to the site to serve the surface water management system. - Fill below-ground voids following the demolition process with granular materials. - Obtain all necessary consents to enable the works. - Surrender to the Authority its sub-lease interest in the site. - Procure that its ultimate parent companies indemnifies the Authority (until expiry of a period of three years following handback) against any failure by the contractor to perform its obligations as set out above and further detailed in the Amendment and Settlement Agreement.

Procurement Information

The purpose of this Notice is to inform the market of the modifications to the Contract awarded on 31 May 2012 to UBB Waste (Essex) Limited for the design, construction, commissioning operation and handback of the MBT facility at Tovi Eco-Park (Basildon, Essex). Following the initial construction of the facility, the Contract provided for a commissioning period followed by Acceptance Tests to confirm that the facility could meet the performance requirements in the Contract. Under the Contract, the tests should have been completed by the Planned Services Commencement Date of 12 July 2015. If not ultimately passed by an Acceptance Longstop Date of 12 January 2017, the Authority was entitled to terminate the Contract. The facility did not pass the Acceptance Test by the Acceptance Longstop Date, which resulted in the Authority commencing litigation against the contractor. The Authority has given notice that it is proposing to take a decision to enter into an Amendment and Settlement Agreement to settle that litigation and to amend the contract on the basis that the site will be cleared and returned to ECC in a condition that will allow for its future redevelopment. It is expected that the modified contract will have a term expiring in 2040. The works / services are therefore ancillary to the amendment and settlement agreement with the contractor and the contract amendments take into account and address the contractor's current rights and obligations in relation to the site. For transparency purposes, a notice pursuant to Regulation 72(1)(b) has also been published to explain why the modifications (clarificatory in nature) preclude the change of contractor for technical or economic reasons.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-032281
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/007143-2022
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Works
Procurement Method
Limited
Procurement Method Details
Award procedure without prior publication of a call for competition
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

45 - Construction work

90 - Sewage, refuse, cleaning and environmental services


CPV Codes

45111000 - Demolition, site preparation and clearance work

45200000 - Works for complete or part construction and civil engineering work

90000000 - Sewage, refuse, cleaning and environmental services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£9,900,000 £1M-£10M

Notice Dates

Publication Date
16 Mar 20223 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
16 Mar 20223 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Not Specified
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
ESSEX COUNTY COUNCIL
Contact Name
Katie Bray
Contact Email
katie.bray@essex.gov.uk
Contact Phone
+44 3330132305

Buyer Location

Locality
CHELMSFORD
Postcode
CM1 1QH
Post Town
Chelmsford
Country
England

Major Region (ITL 1)
TLH East (England)
Basic Region (ITL 2)
TLH3 Essex
Small Region (ITL 3)
TLH36 Heart of Essex
Delivery Location
TLH3 Essex

Local Authority
Chelmsford
Electoral Ward
Moulsham and Central
Westminster Constituency
Chelmsford

Supplier Information

Number of Suppliers
1
Supplier Name

UBB WASTE (ESSEX

Open Contracting Data Standard (OCDS)

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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