Planning

Market engagement on proposed lotting structure for upcoming procurement for a Dry Recycling Contract (DRC) in accordance with the statutory duties of the East London Waste Authority (ELWA).

EAST LONDON WASTE AUTHORITY

This public procurement record has 2 releases in its history.

Planning

18 Feb 2026 at 15:52

Planning

01 Sep 2025 at 13:34

Summary of the contracting process

The East London Waste Authority (ELWA) is currently in the planning stage of a procurement process, focused on engaging with market operators for a forthcoming Dry Recycling Contract (DRC). The procurement, expected to launch formally with a Tender Notice in April 2026, aims to streamline the treatment and disposal services for dry recycling materials. The process is centred around the environmental services industry, specifically non-hazardous refuse treatment and recycling in the London area. ELWA has ruled out dividing the contract based on geographical boroughs, favouring potentially splitting it by the percentage of exclusivity of total estimated annual tonnage. Businesses interested in this procurement must submit feedback on lotting and contract options by 27 February 2026, and further notices are anticipated by April 2026.

This upcoming procurement offers significant opportunities for businesses operating within the waste management and recycling sectors, particularly those capable of handling large volumes. By engaging with ELWA, businesses can potentially secure a position as suppliers for exclusive lots, ranging from 25% to 100% of the annual tonnage. This structure allows both mid-sized firms and larger operators to adapt their capacity according to their business model and scalability. The East London Waste Authority seeks ideas from innovative firms to help refine the procurement structure, primarily aimed at maximising recycling rates and accommodating various market operator preferences, making this a lucrative opportunity for growth and strategic partnerships in the waste management industry.

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Notice Title

Market engagement on proposed lotting structure for upcoming procurement for a Dry Recycling Contract (DRC) in accordance with the statutory duties of the East London Waste Authority (ELWA).

Notice Description

ELWA conducted initial preliminary market engagement in respect of its forthcoming competitive flexible procurement of a Dry Recycling Contract (DRC) in September and October 2025 (Notice reference: 2025/S 000-052844 for further details). As part of the exercise, ELWA published a Market Operator Briefing Note in which it explained that the main objective of the DRC contract is to maximise recycling of dry recycling materials. In the Briefing Note, ELWA explained that the 2024-25 dry recycling tonnage for the four Constituent Councils was 52,859 tonnes. This tonnage has been modelled for the Joint Strategy using 35% reuse and recycling rates at approximately 54,000 tonnes for 2028/29. ELWA also stated in the Briefing Note that it was unlikely to sub-divide the contract into lots based on tonnage, but asked market operators for their views on benefits of sub-dividing the contract into lots. ELWA had 7 respondents to this initial PME, and in respect of sub-division into lots, the majority of respondents expressed a preference for sub-division. However, operators expressed different preferences into how these lots should be structured. For example, options presented included: - Creating lots based on different material streams (e.g. one for twin-steam/source segregated materials and 1 for general DMR); and - Splitting lots by reference to geographical boroughs. Respondents also provided their minimum and maximum processing capacities. In preparing for the launch of this procurement in April 2026, ELWA seeks views from the market in respect of the lotting structure for the procurement on the points included in the "Engagement Process Description" of this notice.

Planning Information

In preparing for the launch of this procurement in April 2026, ELWA has ruled out the potential for splitting the contract into lots by reference to geographical boroughs and therefore seeks views from the market in respect of the following lotting/contract options: 1 - If ELWA does not divide the contract into lots, and seeks to procure a single contract for exclusivity of all dry recycling material, would your organisation participate in the procurement and be able to process 100% of the total estimated annual tonnage? 2 - If ELWA does divide the contract into lots, it has considered whether to divide the contract into lots based on exclusivity % of the total estimated annual tonnage. E.g. lots for 25%, 50%, 75% or 100% of the total estimated annual tonnage. If ELWA adopts this approach, it seeks feedback from market operators as to: - their preferred exclusivity % of ELWA's annual tonnage, and which of the below options respondents would bid for; - two lots: one of 75% exclusivity of ELWA's annual tonnage and one for 25% exclusivity, with suppliers able to bid for and subsequently win either lot, resulting in either one or two suppliers being selected; and - two lots: one for 50% exclusivity of ELWA's annual tonnage and one for 25% exclusivity, with suppliers able to bid for and subsequently win either lot, resulting in a minimum of two suppliers (if the winner of the 50% lot also wins the 25% lot + one other 25% supplier) or three suppliers if there is one winner of the 50% lot and 2 bidders from the 25% lot); ELWA could also reserve the right to discontinue the 25% lot if it receives a number of bids for the 50% lot (subsequently resulting in two suppliers each being awarded 50% exclusivity). 3 - As an alternative to lots, ELWA could structure the procurement so that bidders submit proposals on the assumption that an award for 25% exclusivity of ELWA's annual tonnage will be made. However, the highest-scoring bidder is able to confirm whether it wishes to have 25%, 50%, 75% or 100% exclusivity. In the event the highest-scoring bidder selects 75%, 50% or 25%, the second highest-scoring bidder is able to select what % exclusivity it wishes to deliver, and so on until 100% exclusivity has been awarded. This approach could result in 1 - 4 suppliers being awarded a % of exclusivity of ELWA's annual tonnage. Pricing for exclusivity % higher than 25% (e.g. 50%, 75% or 100%) will be calculated by multiplying the successful bidder's tendered pricing for 25% exclusivity by the % exclusivity it will actually deliver (e.g. 75% exclusivity = tendered pricing multiplied by 3). 4 - ELWA also welcomes feedback on a proposal to have a sifting stage where bidders confirm which lot they are interested in, prior to submitting the Procurement Specific Questionnaire/Conditions of Participation. ELWA would then confirm the lots based on maximising participation in the procurement (and to reduce the burden on bidders in the event lots are discontinued following the Conditions of Participation stage). ELWA would appreciate responses to these questions being submitted to enquiries@eastlondonwaste.gov.uk by 17:00 on by Friday 27 February 2026, with the subject heading "DRC Lotting PME". ELWA appreciates the time and effort of respondents in participating in this PME exercise. Market operators may submit any clarification questions, enquiries or further information regarding the conduct of the preliminary market engagement to ELWA to enquiries@eastlondonwaste.gov.uk. Though encouraged, engagement in this preliminary market engagement exercise is not a requirement for participation in the forthcoming procurement, which shall be formally commenced through publication of a Tender Notice.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-05916d
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/014917-2026
Current Stage
Planning
All Stages
Planning

Procurement Classification

Notice Type
UK2 - Preliminary Market Engagement Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Not Specified
Procurement Method Details
Not specified
Tender Suitability
Not specified
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

90 - Sewage, refuse, cleaning and environmental services


CPV Codes

90513000 - Non-hazardous refuse and waste treatment and disposal services

90514000 - Refuse recycling services

Notice Value(s)

Tender Value
£52,668,000 £10M-£100M
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
18 Feb 20264 days ago
Submission Deadline
Not specified
Future Notice Date
7 Apr 20262 months to go
Award Date
Not specified
Contract Period
23 Dec 2027 - 31 Mar 2033 Over 5 years
Recurrence
Not specified

Notice Status

Tender Status
Planning
Lots Status
Planning
Awards Status
Not Specified
Contracts Status
Not Specified

Contracting Authority (Buyer)

Main Buyer
EAST LONDON WASTE AUTHORITY
Additional Buyers

LONDON BOROUGH OF BARKING AND DAGENHAM COUNCIL

Contact Name
Not specified
Contact Email
enquiries@eastlondonwaste.gov.uk, procurementcdp@lbbd.gov.uk
Contact Phone
Not specified

Buyer Location

Locality
LONDON
Postcode
E15 2ST
Post Town
East London
Country
England

Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI5 Outer London - East and North East
Small Region (ITL 3)
TLI52 Barking & Dagenham and Havering
Delivery Location
TLI4 Inner London - East, TLI41 Hackney and Newham, TLI5 Outer London - East and North East

Local Authority
Barking and Dagenham
Electoral Ward
Abbey
Westminster Constituency
Barking

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

Download

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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