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Partnering Agreement for Environmental and Street Scene Services

Gosport Borough Council

This public procurement record has 2 releases in its history.

Award

15 Oct 2026 at 14:38

UK6 - Contract Award Notice
Award

15 Oct 2026 at 14:35

UK5 - Transparency Notice
Summary of the contracting process

Gosport Borough Council’s environmental and street-scene services contract covers household and general refuse collection, litter collection, street cleaning and sweeping, and beach cleaning in Gosport. The existing service also includes garden-waste collection, with income collection remaining the contractor’s risk, and weed spraying as a core service. The arrangement supports continuity of the Council’s waste and public-realm services while it addresses new recycling and producer-responsibility requirements and plans its longer-term service model. The extension also reflects the operational need for a depot and the long lead times for ordering refuse vehicles and equipment. Public toilet building maintenance and repair remain within the arrangement, with liability reduced under the variation.

The process is complete and records a two-year extension and variation to the existing contract, rather than a new competitive award under the Procurement Act 2023. The original contract began on 1 April 2011; the extension runs from 28 October 2026 to 31 March 2028. The estimated extension value is £8.75 million excluding VAT (£10.5 million including VAT). FCC Environment (UK) Limited and FCC Waste Management Limited are named as suppliers; the award is recorded as pending. The extension was agreed directly with the incumbent under the modification provisions of the Public Contracts Regulations 2015, to maintain service continuity while the Council develops a long-term solution. The changes adjust garden-waste income and profit-sharing arrangements, remove an annual variable profit payment, add weed spraying as a specified service, and reduce liabilities for public toilet maintenance. The process has one lot.

This arrangement demonstrates demand from Gosport Borough Council for an integrated, long-running waste and public-realm service, requiring the capacity to manage household refuse collections alongside litter, street and beach cleaning. A credible future competitor would need operational scale, specialist vehicles and equipment, and the ability to plan procurement of that fleet well ahead of service changes. Delivery also depends on managing a depot, adapting to evolving recycling and producer-responsibility requirements, and maintaining continuity across a broad set of municipal services. Relevant experience would include garden-waste collections and associated income risk, routine weed spraying, and maintenance responsibilities for public toilet buildings. The incumbent structure combines environmental and waste-management suppliers; competitors should be equipped to coordinate delivery and manage commercial arrangements that include income, costs and shared savings or overspends.

How relevant is this notice?

Notice Information

Notice Title

Partnering Agreement for Environmental and Street Scene Services

Notice Description

The Council is not awarding a contract under the Procurement Act 2023. Rather, this notice is being used only to provide transparency in relation to a non-material extension to a PCR 2015 governed contract alongside a VEAT notice and a Transparency Notice. The Council is facing a number of challenges centred around new waste legislation (in particular Simpler Re-cycling and EPR) and the need for a new depot site used for the provision of service. The above, coupled with long run-in times for ordering refuse trucks/equipment, means that a variation to extend the term of the existing Contract is the most viable option to prevent disruption to the services and to maintain continuity of a key public service. The Council is part of the Hampshire County Council wide Project Integration but the parties to that integration are yet to finalise their needs. The existing Contract with Urbaser Ltd (now FCC Waste Management Ltd (FCC)) commenced on 1 April 2011 and was due to expire in March 2026. The Contract has been provisionally extended by informal agreement between the parties and the parties now intend to formalise the extension by two years effective from April 2026 to April 2028, with an estimated value of PS8.75M over the period. This extension was not originally provided for in the Contract. The following modifications to the Contract will be made as part of the extension to capture the financial agreement reached between the Council and FCC: FCC's garden waste income (minus expenditure) has been included for reporting purposes into the main contract sum before margin/profit calculated to reflect income received. Collection of garden waste income from residents remains an FCC risk; FCC's payment to the Council to reflect "guaranteed garden waste income" has been removed as an expenditure prior to any profit being shared by the parties. Concept of profit share between the parties remains but figure changed as below. Exceptional profit share amended with the Council taking a greater percentage of any overspend but receiving an equivalent higher percentage of any savings to reflect extension. The Council's variable profit annual payment to FCC has been removed which has an estimated value of PS25,000 per annum; Adding weed spraying into the Specification as a service to be provided rather than one which the Council could request if required. This has an estimated value of PS60,000 per annum within the main contract sum instead of being pad as part of Ad Hoc Works to reflect reality this is always required. Reducing liability for both the Council and FCC in respect of Interior Maintenance and Repair of Public Toilet Buildings which represents a reduced spend of PS45,000 per annum; Incorporating the guarantor as a party to the deed of variation to recognise that these changes are already captured by the existing guarantee; As a consequential change to the deed of variation, the existing lease between the Council and the Contractor for part of the Willmott Lane expired on 31 March 2026. The Council anticipates putting in place a new lease for a term of two years (to align with the extended term of the Contract) in substantially the same form as the original lease but with an updated plant to reflect the practical boundary/use of the site. In the Council's reasonable financial opinion, these changes are not considered to be material but rather reflect the practical operation of the Contract and, in places, reduce certain costs to the Council. The total actual spend under the original Contract over the 15 year term was PS41M. The increase as against the original estimated value arose due to unexpected increases in waste volumes over the term, growth in households served, market inflation, and changes to operational requirements, which were not foreseen when the initial award was made. The estimated cost of the proposed two year extension taken together with the other modifications described above is PS8.75M. The proposed two-year extension is intended to provide sufficient time to allow the Council to finalise its requirements for a long-term solution and to plan and undertake a competitive tendering exercise for the successor, long-term arrangement in accordance with the Procurement Act 2023. The Council considers that the proposed modifications are permitted in accordance with Regulation 72(1)(e) of the Public Contracts Regulations 2015 (PCR) for the reasons set out below. With reference to Regulation 72(8)(a), the proposed modifications will not render the Contract materially different in character as there will be no material change to the services to be provided for the extension period (either in terms of the nature of the services or the quantity). The modifications are an extension of term only and minor clarifications to the service/payment made to reflect actual operation as set out in this notice. With reference to Regulation 72(8)(b), the Council does not consider that the modifications introduce conditions which would have (i) allowed for the admission of other candidates, (ii) allowed for the acceptance of a tender other than that originally accepted, or (iii) attracted additional participants in the procedure. The key effect of the modifications are to extend the term of the Contract by 2 years and in the context of a 15 year contract the Council does not consider there would have been any change to the outcome of the original procurement by this change. With reference to Regulation 72(8)(c), the modifications will not materially change any of the core commercial terms of the Contract, and there will be no change to the economic balance of the contract in favour of FCC. The Council does not consider that the modification will extend the scope of the Contract considerably within the meaning of Regulation 72(8)(d). No material change is proposed to the nature or quantity of the works and services and no material new services or works will be included in the scope. Regulation 72(8)(e) of the PCR is not engaged as there is no change to the contractor.

Procurement Information

The Council is not making a direct award under the Procurement Act 2023. Rather, this notice is being used only to provide transparency in relation to a non-material extension to a PCR 2015 governed contract alongside a VEAT notice and a Contract Award Notice (also being published for transparency). The Council is facing a number of challenges centred around new waste legislation (in particular Simpler Re-cycling and EPR) and the need for a new depot site used for the provision of service. The above, coupled with long run-in times for ordering refuse trucks/equipment, means that a variation to extend the term of the existing Contract is the most viable option to prevent disruption to the services and to maintain continuity of a key public service. The Council is part of the Hampshire County Council wide Project Integration but the parties to that integration are yet to finalise their needs. The existing Contract with Urbaser Ltd (now FCC Waste Management Ltd (FCC)) commenced on 1 April 2011 and was due to expire in March 2026. The Contract has been provisionally extended by informal agreement between the parties and the parties now intend to formalise the extension by two years effective from April 2026 to April 2028, with an estimated value of PS8.75M over the period. This extension was not originally provided for in the Contract. As noted above, the following modifications to the Contract will be made as part of the extension to capture the financial agreement reached between the Council and FCC: * FCC's garden waste income (minus expenditure) has been included for reporting purposes into the main contract sum before margin/profit calculated to reflect income received. Collection of garden waste income from residents remains an FCC risk; * FCC's payment to the Council to reflect "guaranteed garden waste income" has been removed as an expenditure prior to any profit being shared by the parties. Concept of profit share between the parties remains but figure changed as below. * Exceptional profit share amended with the Council taking a greater percentage of any overspend but receiving an equivalent higher percentage of any savings to reflect extension. * The Council's variable profit annual payment to FCC has been removed which has an estimated value of PS25,000 per annum; * Adding weed spraying into the Specification as a service to be provided rather than one which the Council could request if required. This has an estimated value of PS60,000 per annum within the main contract sum instead of being pad as part of Ad Hoc Works to reflect reality this is always required. * Reducing liability for both the Council and FCC in respect of Interior Maintenance and Repair of Public Toilet Buildings which represents a reduced spend of PS45,000 per annum; * Incorporating the guarantor as a party to the deed of variation to recognise that these changes are already captured by the existing guarantee; * As a consequential change to the deed of variation, the existing lease between the Council and the Contractor for part of the Willmott Lane expired on 31 March 2026. The Council anticipates putting in place a new lease for a term of two years (to align with the extended term of the Contract) in substantially the same form as the original lease but with an updated plant to reflect the practical boundary/use of the site. In the Council's reasonable financial opinion, these changes are not considered to be material but rather reflect the practical operation of the Contract and, in places, reduce certain costs to the Council. The total actual spend under the original Contract over the 15 year term was PS41M. The increase as against the original estimated value arose due to unexpected increases in waste volumes over the term, growth in households served, market inflation, and changes to operational requirements, which were not foreseen when the initial award was made. The estimated cost of the proposed two year extension taken together with the other modifications described above is PS8.75M. The proposed two-year extension is intended to provide sufficient time to allow the Council to finalise its requirements for a long-term solution and to plan and undertake a competitive tendering exercise for the successor, long-term arrangement in accordance with the Procurement Act 2023. The Council considers that the proposed modifications are permitted in accordance with Regulation 72(1)(e) of the Public Contracts Regulations 2015 (PCR) for the reasons set out below. With reference to Regulation 72(8)(a), the proposed modifications will not render the Contract materially different in character as there will be no material change to the services to be provided for the extension period (either in terms of the nature of the services or the quantity). The modifications are an extension of term only and minor clarifications to the service/payment made to reflect actual operation as set out in this notice. With reference to Regulation 72(8)(b), the Council does not consider that the modifications introduce conditions which would have (i) allowed for the admission of other candidates, (ii) allowed for the acceptance of a tender other than that originally accepted, or (iii) attracted additional participants in the procedure. The key effect of the modifications are to extend the term of the Contract by 2 years and in the context of a 15 year contract the Council does not consider there would have been any change to the outcome of the original procurement by this change. With reference to Regulation 72(8)(c), the modifications will not materially change any of the core commercial terms of the Contract, and there will be no change to the economic balance of the contract in favour of FCC. The Council does not consider that the modification will extend the scope of the Contract considerably within the meaning of Regulation 72(8)(d). No material change is proposed to the nature or quantity of the works and services and no materially new services or works will be included in the scope. Regulation 72(8)(e) of the PCR is not engaged as there is no change to the contractor.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-0788a6
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/097540-2026
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
UK6 - Contract Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Direct
Procurement Method Details
Direct award
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

90 - Sewage, refuse, cleaning and environmental services

CPV Codes

90511100 - Urban solid-refuse collection services

90511200 - Household-refuse collection services

90511300 - Litter collection services

90610000 - Street-cleaning and sweeping services

90680000 - Beach cleaning services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
£8,750,000 £1M-£10M
Contracts Value
Not specified

Notice Dates

Publication Date
15 Oct 20261 weeks ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
1 Apr 20266 months ago
Contract Period
28 Oct 2026 - 31 Mar 2028 1-2 years
Recurrence
Not specified

Notice Status

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

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
Gosport Borough Council
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
GOSPORT
Postcode
PO12 1EB
Postcode Area
Portsmouth
Country
England
Major Region (ITL 1)
TLJ South East (England)
Basic Region (ITL 2)
TLJ3 Hampshire and Isle of Wight
Small Region (ITL 3)
TLJ35 South Hampshire
Delivery Location
Not specified
Local Authority
Gosport
Electoral Ward
Harbourside & Town
Westminster Constituency
Gosport

Supplier Information

Number of Suppliers
2
Supplier Names

FCC Environment (UK) Limited

Urbaser Ltd

Further Information

Notice Documents

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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