Understanding Procurement Challenges through a Waste Market Assessment

12th August 2020

A public sector client reached the completion of the contract with their waste service provider. As part of its due diligence, the client needed to review the full set of waste treatment options available to them and their associated risks. Eunomia was able to provide a quantitative assessment of the market from the customers point of view, and commercial advice to the client seeking to understand the national waste market.

The assessment took into consideration the client’s need to understand future capacity for waste treatment in the region; an assessment of service providers with potential interest in the client’s waste; the economic impact of spot market prices on their options; and previous procurement situations relevant to this project where procurement challenges could have been made. This review included assessing the likelihood of a procurement challenge by identifying potentially interested parties.

Our assessment covered the following areas relating to the waste market:

  • the current and future policy context;
  • the market drivers acting on the sector;
  • a supply and demand modelling appraisal;
  • waste exports to EU member states;
  • an understanding of market prices;
  • a review of relevant previous situations, with regards to the procurement of public services; and
  • a summary of risks related to the client’s specific needs.

Eunomia maintains a comprehensive database and regularly reviews all residual waste facilities in the UK. In addition, Eunomia acts as the secretariat to the RDF Industry Group, comprised of 32 private sector members spanning the international RDF supply chain. From this expert industry knowledge, Eunomia was able to provide the client with a quantitative assessment of the residual waste market from their perspective. We provided a set of recommendations for the local authority. In the report, we outlined the different approaches available to them along with the advantages and a sophisticated understanding of the risks involved in the different courses of action. The client was then able to consider the advice provided by our work in its procurement strategy.

Through our work with waste and resource management companies, local authorities and government, we remain very ‘close’ to the market and have an-in depth understanding of how the different facets of the waste market interact.

Alexa Cancio, our Project Manager, said:

Eunomia is well-regarded for its knowledge and expertise in the waste sector, which played a big role in meeting the needs of this project. In addition, our track record in procurement services served well in highlighting what approaches would best serve the client and what risks they would need to take into account.

A spokesperson from the client said:

“Eunomia provided a comprehensive and insightful overview of the waste market sector, tailored to our needs. The team’s expertise in waste procurement services was obvious and they delivered the work rapidly and to a high standard. The report has been instrumental in our decision about the next steps for waste management for the organisation.”

Image courtesy of Lisa via Flikr CC BY-NC-ND 2.0.