Award

VEAT Notice - South West Kent Waste Partnership - Waste Services Contract 2019

TUNBRIDGE WELLS BOROUGH COUNCIL

This public procurement record has 1 release in its history.

Award

10 Mar 2023 at 12:35

Summary of the contracting process

The procurement process was initiated by Tunbridge Wells Borough Council for the South West Kent Waste Partnership - Waste Services Contract 2019 in the services industry category. The contract, awarded to Urbaser Ltd and Urbaser SAU, involves recycling and refuse collection services in Kent, England. The contract has an initial term of 8 years with options for extensions. The total value of the contract is £121,340,554.85 (excluding VAT), and the procurement method used was an Award procedure without prior publication of a call for competition.

This tender provides opportunities for businesses in waste management services to compete for a long-term contract in the public sector. Companies with expertise in refuse collection and recycling services, particularly those with experience in managing large-scale contracts, would be well-suited to participate. The modifications to the contract aim to address market challenges, improve service efficiency, and benefit both the contracting authority and the local community by ensuring smooth service transitions and reducing carbon emissions.

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Notice Title

VEAT Notice - South West Kent Waste Partnership - Waste Services Contract 2019

Notice Description

Tonbridge and Malling Borough Council ("TMBC") and Tunbridge Wells Borough Council ("TWBC") (together "the Partnership") awarded a contract to Urbaser Ltd and Urbaser SAU ("Urbaser") for recycling and refuse collection services and street cleansing services across the local authority areas covered by the Partnership ("the Contract"). The procurement leading to the award of the Contract was advertised in the OJEU (Contract Notice 2018/S 023-048722). Details can be found in the Contract Notice and Contract Award Notice (2019/S 060-139796). The contract is for a term of 8 years with an option to extend twice; the first extension for either up to 2 years or 8 years and the second extension for a period of 2 years but only if the contract has already been extended for 8 years. The estimated total value of the Contract is PS121,340,554.85 (excluding VAT). The Partnership is intending to modify the Contract as described in this Notice.

Lot Information

Lot 1

The Contract commenced in March 2019 with an initial term of 8 years. The estimated value of the Contract was PS121,340,554.85 (excl. VAT). The services have been affected by the nationwide shortage of HGV drivers, as a result of which the garden waste service and some other collections were temporarily suspended. In order to attract and retain drivers, Urbaser proposed an enhanced pay rate. In the period May to October 2022 the Partnership provided some financial assistance towards that enhanced pay rate. The support was conditional upon Urbaser providing evidence of the enhanced pay rate actually provided to the drivers and incurred by Urbaser. The value of the Partnership's support between May and October 2022 was capped at PS178,896.87. That support has been successful in recruiting and retaining drivers. The pressures in the market continue, however, and the Partnership intends to continue to provide this support for the period from November 2022 to 31 March 2023. [Continued at VI.3] Additional information: The value in II.1.7 represents the estimated value of the Contract when it was originally entered into in September 2018. The estimated value of the Contract taking into account the proposed modification detailed in this notice will be up to a maximum of PS121,786,554.58.

Procurement Information

The Partnership considers that it is permissible to make the proposed modifications to the Contract because they fall within the scope of Regulation 72(1)(e) and 72(8) of the Public Contracts Regulations 2015 ("PCR") which permit modifications that are not "substantial". The proposed modifications do not render the Contract materially different from the one initially concluded. The financial support to be provided from November 2022 to March 2023 will not exceed PS146,500 (approx. 0.12% of the value of the Contract). It relates to a market-wide issue and will only be paid upon Urbaser providing evidence of the actual costs incurred. It will not alter the economic balance of the Contract. From April 2023 the increased cost of wages will be covered by the Contract's indexation provisions. In relation to the re-rounding of collections and re-fleeting of vehicles, this will bring a direct benefit to the Partnership and its residents. Waste collections will be more efficient, the number of journeys will reduce, as will carbon emissions. The contribution provided in relation to the costs of early termination of the existing vehicle leases will be limited to PS300,000 (approx. 0.25% of the value of the Contract) which will reflect a share of Urbaser's costs of implementing the improvements to the service. While the Partnership will ultimately acquire a liability (in the form of the unexpired term of the vehicle lease) this will directly benefit the Partnership by facilitating a smooth transition to a new provider or to in-house provision, with the key assets in place. It will mean that the Partnership or a new provider will not be exposed to the need to compete with established service providers for new vehicles in a congested market during a transition period. Urbaser taking the new vehicles on an 8-year lease (the expected life of such vehicles) ensures value for money which ultimately benefits the Partnership and its taxpayers. The Partnership considers that the proposed modifications (individually and collectively) do not render the Contract materially different to the one originally concluded, do not extend the scope of the Contract, do not alter the economic balance of the Contract in favour of Urbaser, and would not have affected the participation in, or outcome of, the procurement. The Partnership is providing details of the historical modifications that have occurred to date, which were de minimis and therefore did not require a re-procurement.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-03b1cb
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/007049-2023
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Services
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

90 - Sewage, refuse, cleaning and environmental services


CPV Codes

90500000 - Refuse and waste related services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£121,340,554 £100M-£1B

Notice Dates

Publication Date
10 Mar 20232 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
24 Sep 20187 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
TUNBRIDGE WELLS BOROUGH COUNCIL
Contact Name
Mr Dan Hutchins
Contact Email
dan.hutchins@tunbridgewells.gov.uk
Contact Phone
+44 1892526121

Buyer Location

Locality
TUNBRIDGE WELLS
Postcode
TN1 1RS
Post Town
Tonbridge
Country
England

Major Region (ITL 1)
TLJ South East (England)
Basic Region (ITL 2)
TLJ4 Kent
Small Region (ITL 3)
TLJ46 West Kent
Delivery Location
TLJ46 West Kent

Local Authority
Tunbridge Wells
Electoral Ward
Park
Westminster Constituency
Tunbridge Wells

Supplier Information

Number of Suppliers
1
Supplier Name

URBASER LTD AND URBASER SAU

Open Contracting Data Standard (OCDS)

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