What is the most cost-effective way to commission your waste and recycling collection services?
Sustained pressure on budgets means many local authorities are reconsidering how to organise their collection services – whether it’s in house, through outsourcing, or via a local authority company.
Eunomia’s Commissioner tool provides managers and elected members with a robust model that helps inform critical decisions such as commissioning the ‘right’ option. Commissioner integrates the financial and qualitative considerations into a single MS Excel tool that can be handed to the client to support any written report we may be asked to prepare. Commissioner allows decision-makers to compare what financial savings could be made alongside the practical criteria.
The qualitative appraisal is based on risk assessment methodology and considers all issues in terms of probability, magnitude and ability to mitigate downsides. Although many less significant issues can be included in this kind of appraisal, the fundamental ones relate to control, flexibility, sovereignty and transfer of financial risk.
On the financial side, the key factors are:
- Variation in unit labour cost, made up of general terms and conditions and pension costs. The significance of these will vary considerably depending on the baseline situation
- Extent of profit assumed in the baseline (if contracted out) and future outsourced options
- Any assumptions regarding variation in productivity resulting from different options.
Commissioner enables Eunomia to provide impartial and objective advice that has led us to recommend a wide range of options to different authorities, based on our analysis of their specific circumstances.
Find out how we can use Commissioner to help you finding the most cost-effective collection service by contacting a member of our team.