Contract Award for the Provision of Waste Management and Recycling Services for Bulky Waste
North Lanarkshire Council · 24 August 2022
Back to Environment and Place Committee — 24 August 2022 and its agenda
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North Lanarkshire Council Report Environment and Place Committee Does this report require to be approved? ☒ Yes ☐ No Ref: NLC-CPT-22-010 Date: 24 August 2022 Contract Award for the Provision of Waste Management & Recycling Services for Bulky Waste From Andrew McPherson, Head of Regulatory Services and Waste Solutions E-mail mcphersona@northlan.gov.uk Telephone 07939 280467 Executive Summary The Committee is asked to approve the award of a contract for the Provision of Waste Management & Recycling Services for Bulky Waste (the ‘Contract’) to Dow Group Limited. The Contract is for an initial period of 36 months anticipated to commence on 14 October 2022. The Council reserves the right to extend the Contract for additional periods up to a maximum of a further 24 months in two 12-month periods. The value of the Contract shall not exceed Six Million, One Hundred Thousand and Nine Hundred and Eighteen Pounds Sterling (£6,100,918) exclusive of VAT. Recommendations It is recommended that Committee approves the award of the Contract to Dow Group Limited at the maximum value of Six Million, One Hundred Thousand and Nine Hundred and Eighteen Pounds Sterling (£6,100,918) exclusive of VAT. This recommendation follows the completion of a procurement procedure, where the Tender recommended for award has been evaluated as providing the most economically advantageous Tender in terms of cost and quality for the Council. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition Statement (17) Ensure we keep our environment clean, safe, and attractive
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1. Background 1.1 The requirements within the Contract are currently under Contract with Dow Group Limited. This contract is due to expire on 13 October 2022 with the Contract detailed within this report due to supersede this. 1.2 North Lanarkshire Council are responsible for waste management facilities to sort, treat and dispose / recycle items of bulk waste collected as shown below: • The Council’s “Special Uplift” service excluding items of Waste Electrical and Electronic Equipment (WEEE); • Dumped waste from the Council’s “Removal of Fly Tipping” service; and • Bulky waste removal from the Councils housing stock. 1.3 The Special Uplift Service is one of several services offered and operated by the Council’s Waste Solutions Section and compliments the weekly domestic kerbside collection services and Household Waste Recycling Centres, (HWRC), that are strategically located throughout the North Lanarkshire area. 1.4 It is anticipated that the following tonnage will be collected annually: • circa 3,000 tonnes of bulky household waste via the Council’s “Special Uplift” service; • circa 6,000 tonnes of dumped waste from the Council’s “Removal of Fly Tipping” service • circa 1,400 tonnes of bulky household waste via the bulky waste removed from the Councils housing stock. 2. Report 2.1 A user intelligence group (the ‘UIG’) of technical and procurement representatives was formed to review technical specifications, discuss trading processes, market conditions and trends, ways to maximise community benefits and sustainability and to agree the procurement strategy that would deliver maximum benefit for the Council via the Contract. 2.2 The initial estimated value of the Contract and the identified procurement procedure (route to market) dictated that the procurement procedure be undertaken in accordance with the Procurement (Scotland) Regulations 2016. 2.3 The procurement procedure was undertaken as a “Mini Competition” from the Scotland Excel Treatment and Disposal of Recyclable and Residual Waste (27/17) Dynamic Purchasing System (DPS), Lot 11 – Treatment and Disposal of Bulky Waste 2.4 The Contract award recommendation is made on the basis of the tenderer who submitted the most economically advantageous tender. 2.5 The tender submitted by Dow Group Limited has been evaluated as representing the most economically advantageous tender for this Contract.
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2.6 Appendix 1 confirms the scoring achieved by each tenderer, further details of the procurement procedure is provided in Appendix 2 and the SME status and location of all tenderers is located within Appendix 3. 2.7 The value of the Contract shall not exceed Six Million, One Hundred Thousand and Nine Hundred and Eighteen Pounds Sterling (£6,100,918) exclusive of VAT including all extension options available. 2.8 The costs associated with contract delivery will be contained within the revenue budgets for Waste Solutions, Land Maintenance & Housing Solutions. Price Savings / Increases 2.9 The value of the contract has been increased due to a rise in the tonnage for the fly tipping removal services and to accommodate additional tonnage if required for a service change for the Special Uplift Service. The new rates are an increase of circa 6.4% for special uplifts and fly tipping removal waste, and a saving of circa 12% on the rates for bulky waste removed from the Council’s housing stock. Price Stability 2.10 Prices shall be firm for the first 12 months of the Contract. Subsequent to that initial period, there is provision within the Contract for Dow Group Limited to request annual price review however these will require to be no greater than the current National Retail Price Index & any statutory amendments to landfill tax. The decision to accept or reject any price review will be at the sole discretion of the Council. Community Benefits 2.11 The Council is committed to maximising the delivery of community benefits. The procurement included a community benefit requirement, this approach is designed to deliver local community benefits where possible. 2.11.1 Within their Tender, Dow Group Limited committed to deliver the following community benefits within the Contract where possible: • Create recruitment, including apprenticeship opportunities; • Provide training sessions in the Council’s establishments; • Supply chain development & opportunities for local SMEs; and • Local youth sports programme sponsorship. 2.11.2 The community benefits delivered as part of the Contract potentially include the creation of jobs or apprenticeships. Fair Work First 2.12 Within their tender submission, Dow Group Limited advised that they have committed and / or will commit to the following areas of the Scottish Governments “Fair Work First” initiative: • Investment in workforce development; • No inappropriate use of zero hours contracts;
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• Work towards being an accredited Living Wage Employer; and • Appropriate channels for effective voice, such as trade union recognition Contract Strategy 2.13 Officers from Regulatory and Waste Solutions will be responsible for managing the Contract which will be undertaken in accordance with the Council’s agreed approach to contract and supplier management. 3. Measures of success The Contract will deliver the following outcomes; 3.1 The appointment of a service provider who has the experience and capability to deliver an innovative, high quality and responsive waste disposal and recycling service that will deliver the minimum delivery targets within the Contract; • The contract award procedure is compliant with the procurement legislation and internal procedures; • That best value is both demonstrable and achieved; • That the Contract secures a range of community benefits; • That the Contract secured a number of “Fair Work First” initiatives; • That the Contract performance is proactively managed against a number of local Key Performance Indicators and national targets; and • A collaborative approach to the procurement of the requirement, minimising the burden on internal resource and leveraging the economies of scale. Andrew McPherson Head of Head of Regulatory Services and Waste Solutions
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4. Impacts ( http://connect/report-template-guidance ) 4.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? N/A If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 4.2 Financial Impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? North Lanarkshire Council has a statutory obligation to provide the Bulky Waste Service for Special Uplifts, Fly Tipping removal & Housing Bulky removal. This has been built into the revenue budget for Waste, Land Management & Housing. 4.3 HR Policy Impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? N/A 4.4 Legal Impact
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Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? N/A 4.5 Data Protection Impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e-mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 4.6 Technology / Digital Impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? N/A Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐
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4.7 Environmental / Carbon Impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The Dow Group Limited have indicated they can achieve over 40% recycling and a minimum of 25% diversion from landfill of the material delivered through this contract. Thus, improving North Lanarkshire’s recycling performance. They will also continue to explore ways to extract further types of material for recycling. They have a commitment to meet the ban on all non-household biodegradeable waste from entering Landfill by 2025. Both will have a positive impact on the carbon emissions. 4.8 Communications Impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? N/A 4.9 Risk Impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Low risk as there are plenty of contingency opportunities if the successful contractor was unable to fulfil the contract. This can be achieved either via Scotland Excel framework or through a Negotiated Tender Process for a temporary period.
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Appendix 1 – Summary of Tender Evaluation Process Final Rank Tenderer Name Total Tender Score (%) Recommended for Contract Award (Y / N) 1 Dow Group Limited 93.00% Yes 2 Diverse Investments Scotland Limited trading as Newtown Waste Solutions Limited and Newtown Skip Hire Limited 84.65% No 3 Paterson’s of Greenoakhill Limited 80.89% No 4 Hamilton Waste & Recycling Limited 78.13% No
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Appendix 2 – Summary of Procurement Process Response Procurement Procedure Utilised: Mini Competition DPS Owner Scotland Excel DPS Title Treatment and Disposal of Recyclable and Residual Waste DPS Reference Number 27/17 DPS Lot Reference Lot 11 – Treatment and Disposal of Bulky Waste Governing Legislation / Regulations: Procurement (Scotland) Regulations 2016 Date Contract Strategy Approved: 16 September 2019 (Overarching Strategy for the Scotland Excel Treatment and Disposal of Recyclable and Residual Waste (27/17) Dynamic Purchasing System) Date ITT Documents Published: 25 May 2022 Number of Companies Invited to Take Part: 31 Tender Return Deadline: 15 June 2022 Number of Tenders Received: 4 Tenders Received from SME’s: 3 Tenders Received from NLC Based Tenderers: 3 Number of Non−compliant Tenders: 0 Number of Compliant Tenders: 4 Number of Recommended Tenderers: 1 Basis of Contract Award (Both Lots): Quality: 30% Price: 70% Evaluation Team: Officers from Waste Solutions Anticipated Contract Start Date: 14 October 2022 Total Contract Period (Months): 36 + 12 + 12 Maximum Total Contract Value: £6,100,918
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Appendix 3 – SME Status and location of all Tenderers Name of Tenderer Size of Tendering Organisation (Micro, Small, Medium or Large) Location (Local Authority / Council Area) Dow Group Limited Medium North Lanarkshire Diverse Investments Scotland Limited trading as Newtown Waste Solutions Limited and Newtown Skip Hire Limited Small North Lanarkshire Paterson’s of Greenoakhill Limited Large North Lanarkshire Hamilton Waste & Recycling Limited Medium East Lothian