Decision details

The Environment Portfolio Holder presented a report on the outcome of the dialogue sessions for the Invitation to Submit Detailed Solutions (ISDS) stage of the Waste Management procurement process.

The Portfolio Holder reported that a number of key issues had arisen during the dialogue sessions which needed to be clarified by the Cabinet before 9 December 2013 – the final date for seeking clarifications by the contract bidders. These were as follows:

·         All of the Contractors were made aware of the Council’s decision to retain the Grounds Maintenance service in–house, and that the Oakwood Hill site would not be available as a potential Waste Management depot. However, all of the Contractors had expressed a desire to work closely with the Grounds Maintenance team and locate some of the Street Cleansing resources at Oakwood Hill. Therefore, it was felt that this should be included as an option at the current time.

·         One Contractor had included an option to extend the working week for waste collections beyond 4.30pm and to include Saturday mornings, whilst the others had discussed it during the dialogue sessions. There would be a number of issues to consider prior to implementation but it was felt that this could remain as an option at the current stage.

·         All of the Contractors were pleased that the Council was prepared to accept some of the risk associated with the sale and value of recyclables. The Council’s Waste Management Consultant from WYG Environmental had produced a revised clause 22 for discussion at the next stage.

·         At the previous stage, tenders were assessed on the basis of the lowest price for an acceptable level of service. However, this had led to concerns about possible ‘loss leader’ bids and therefore it was suggested that the next stage be assessed on the basis of the tendered price for the ‘as is’ service, i.e. the service that was currently being delivered. Contractors would still be encouraged to include service delivery options as part of alternative bids for the Council to consider alongside the standard bid.

The Portfolio Holder reported that all five bidders remained keen to win the Council’s Waste Management Contract, and that a review was being undertaken of the Council’s Fleet operations service prior to its transfer to the Oakwood Hill site.

The Cabinet had reservations about some of the service options being considered, but was content to agree them for further discussion at the next stage of the process.

Decision:

(1)        That for the purposes of the Invitation to Submit Detailed Solutions (ISDS) Competitive Dialogue process, the following be agreed in principle:

            (a)        the availability of part of the proposed Oakwood Hill depot site to the           waste contractor for street cleansing operations;

            (b)        the inclusion of the ‘extended working week’ as a service delivery    option;

            (c)        the extent of exposure through the ‘risk and reward’ arrangement on           commodities, as set out in the revised clause 22 produced by the Council’s       Waste Management Consultant; and

            (d)        the assessment of tender price be based upon the “as is” service; and

(2)        That the review of the Fleet Operations service currently being undertaken, prior to its move to the Oakwood Hill Depot site, be noted.

Reasons for Decision:

To consider a number of issues arising from the ISDS Competitive Dialogue undertaken in respect of the new waste contract and changes in the assessment methodology for the assessment of ISDS tender returns.

Other Options Considered and Rejected:

The only options were to leave the process as it was, however this carried with it a number of risks to the ISDS process and outcomes.