Environmental consultancy Eunomia supported North Somerset Council to procure a new, competitive Waste Collection and HWRC (Household Waste Recycling Centre) contract, to start in March 2017.
We developed a streamlined two-stage competitive dialogue process that was both innovative and drove down costs. A final reduction in contract price in the region of £1million per annum was made between the stages of the procurement process. The final contract, worth £49m over the first seven years, was awarded to Biffa, and is designed to help the high-performing council maintain or improve its high standing in the recycling league tables while keeping costs low.
Features of the contract include:
- A pragmatic 50/50 risk share mechanism between the authority and contractor on recyclate prices;
- An incentive payment mechanism to improve recycling rates at the HWRCs;
- The introduction of different coloured boxes to increase kerbside separation and collection efficiency;
- A strong emphasis on social value, with the contractor committing to provide apprenticeships and trainee posts in the local area, to help meet the Council’s aspiration that at least 90% of the workforce will hail from North Somerset.
The Project Leader for Eunomia Principal Consultant Andy Grant said:
“When procuring a new waste contract it’s important to do all you can to make sure that the process is competitive. In this case, we developed a streamlined two-stage competitive dialogue process, with dialogue limited to a few areas of the contract, resulting in strong engagement with suppliers throughout the process and maximised competition.”
Another step designed to increase competition was to support the authority in identifying and securing a depot from which any potential contractor could operate. This reduced the potential advantage of the incumbent and encouraged more bidders to participate.
More information about Eunomia’s procurement services can be found here.