Item 05 - Contract Authorisation Report – Treatment of Organic Waste - Comingled Food, Garden Waste
West Dunbartonshire Council · 15 February 2023
Back to Tendering Committee — 15 February 2023 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – Supply, Distribution and Property Tendering Committee: 15 February 2023 ___________________________________________________________________ Subject: Contract Authorisation Report: Treatment of Organic Waste - Co- mingled Food/Garden Waste 1. Purpose 1.1 The purpose of this report is to seek the approval of the Tendering Committee to authorise the Chief Officer - Regulatory and Regeneration to conclude the award of the contract for the Treatment of Organic Waste - Co-mingled Food/Garden Waste. 2. Recommendations 2.1 It is recommended that the Tendering Committee: a) Authorise the Chief Officer - Regulatory and Regeneration to conclude on behalf of West Dunbartonshire Council (the Council), the award of the Contract for the Treatment of Organic Waste - Co-mingled Food/Garden Waste to Keenan (Recycling) Limited. b) Note that the contract shall be for a period of two years with the option of a two x 12 month extension and at a value of £585,000 inclusive of VAT over two years and £1,170,000 inclusive of VAT should the contract be extended. The estimated commencement date of the contract is 28 February 2023. 3. Background 3.1 The Council collect Co-mingled Food/Garden Waste in a household brown bin via refuse collection vehicles and delivered to provider’s processing site. 3.2 Waste is a valuable resource which, when treated appropriately, could significantly boost Scotland’s economy and create jobs. You can use the food waste recycling collection services to dispose of anything you can't eat, or compost at home. It will be recycled into a good quality soil improver or fertiliser and can even generate electricity that can be fed back into the national grid. 3.3 The overall budget for the Treatment of Organic Waste - Co-mingled Food/Garden Waste has been approved as an on-going requirement at full Council as part of the annual budget setting process. 3.4 This procurement exercise has been conducted in accordance with the Council’s Standing Orders and Financial Regulations and the Public Procurement Regulations. A Contract Strategy document was also approved on 13 January 2023. 4. Main Issues ITEM 5
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4.1 Historically, the Council has used Scotland Excel (SXL) Framework Agreements (FA) to source a provider for the Treatment of Organic Waste and the Contract Strategy identified that this is the best route to market for this requirement. There is no other live FA for this requirement. There are nine providers on the SXL FA (0220) for the Treatment of Organic Waste. The Council has considered that a reasonable travel time and mileage to deliver waste should be less than 19 miles from Milton, Dumbarton G82 2UA. This resulted in one possible provider for each Lot who could take the Council’s waste: Co-mingled Food/Garden Waste - Keenan (Recycling) Limited Mileage Distance (Single Journey) 13.4 miles National Gate Fee per Tonne £65.00 Contaminated Fee per Tonne £150.00 4.2 Due to the timescales for the new contracts to be in place for 28 February 2023 and to provide best value to the Council; it is recommended that the Council progresses the Direct Award route (without further competition) under the SXL FA for the Treatment of Organic Waste. 4.3 It is recommended that the contract is awarded to Keenan (Recycling) Limited, of Paisley. The contract shall be for a period of two years with the option of a two x 12 months extension and at a value of £585,000 inclusive of VAT over two years and £1,170,000 inclusive of VAT should the contract be extended. 4.4 Keenan (Recycling) Limited has committed to paying all staff as a minimum the real Living Wage (£10.90 per hour) and promotes Fair Working Practices across their organisation. 4.5 Social Benefits will be discussed at the implementation meeting with Keenan (Recycling) Limited and actions to take these forward will be agreed. The minimum Social Benefits points required is 25 points. 5. People Implications 5.1 There are no people implications. 6. Financial and Procurement Implications 6.1 Financial costs in respect of this Contract will be met from the approved General Revenue budget for Roads and Neighbourhood / Waste Services. 6.2 This procurement exercise was conducted in accordance with the agreed Contract Strategy produced by the Corporate Procurement Unit in consultation with Roads and Neighbourhood / Waste Services officers and the provisions of Contract Standing Orders, the Financial Regulations and Public Procurement Regulations.
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7. Risk Analysis 7.1 Keenan (Recycling) Limited has no known links to Serious and Organised Crime which would have significant political and reputational ramifications for the Council. 7.2 Should the Tendering Committee decide not to proceed as recommended then this will delay the project, may have financial implications and reputational ramifications. 8. Equalities Impact Assessment (EIA) 8.1 An equalities screening was undertaken and the results confirm there are no equalities impact. 9. Consultation 9.1 Roads and Neighbourhood / Waste Services, Finance Services and Legal Services have been consulted on the contents of this report. 10. Strategic Assessment 10.1 The Treatment of Organic Waste will contribute to the delivery of the Council's strategic priorities: “Our environment promotes a greener future”. Name: Angela Wilson Designation: Chief Officer – Supply, Distribution and Property Date: 27 January 2023 Person to Contact: Victoria Wilson, Procurement Officer, Corporate Procurement Unit, 16 Church Street, Dumbarton, 01389 737395 Victoria.Wilson@west-dunbarton.gov.uk Appendices: None Background Papers: Contract Strategy EIA Screening Wards Affected: All
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