Section one: Contracting authority/entity
one.1) Name and addresses
Newcastle City Council
Barras Bridge
NEWCASTLE-UPON-TYNE
NE1 8QH
Contact
Andrew Richardson
andrew.richardson@newcastle.gov.uk
Telephone
+44 1912116936-26936
Country
United Kingdom
NUTS code
UKC22 - Tyneside
Internet address(es)
Main address
one.4) Type of the contracting authority
Regional or local authority
one.5) Main activity
General public services
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
The Provision of a Waste Recovery and Disposal Service
Reference number
000171
two.1.2) Main CPV code
- 90500000 - Refuse and waste related services
two.1.3) Type of contract
Services
two.1.4) Short description
To secure the provision of a waste recovery service at its existing waste recovery facilities within Newcastle upon Tyne
two.1.6) Information about lots
This contract is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Value excluding VAT: £13,300,000
two.2) Description
two.2.3) Place of performance
NUTS codes
- UKC22 - Tyneside
Main site or place of performance
Byker Reclamation Plant
two.2.4) Description of the procurement
N/A
two.2.11) Information about options
Options: No
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Award of a contract without prior publication of a call for competition in the cases listed below
- The procurement falls outside the scope of application of the regulations
Explanation:
The authority is proposing to execute variation to its residual waste contract with SUEZ Recycling and Recovery UK Ltd (formerly known as SITA GB Limited) dated 2 April 2001 which it awarded following the publication of a contract notice in the Official Journal of the EU in 1999 (Original Contract). The estimated value of the Original Contract was £90m (in 2001 prices).
This will formally extend the contract by 12 months to 31 March 2026 and include options for a further two extensions of six months each that can be taken up by mutual agreement by both parties. The period of the extension has been agreed to allow the Original Contract to be co-terminus with the intended commencement of the Tees Valley Energy Recovery Facility contract (TV ERF) which will replace (in part) the service provided under the Original Contract. The TV ERF is currently in procurement and the service commencement date is currently anticipated to be 1 April 2026. The estimated amount payable by the authority for the extension period is £13.3m per year (which is the value inserted section 2 above).
The variation also formalises previous operational changes made to the Original Contract over the last twelve years, as well as the further changes that are needed to facilitate both the smooth transfer from the Original Contract to new model contracts managing the Council's waste stream and allow the authority to plan for change in infrastructure to a configuration which will be able to meet the requirements set out in the Environment Act 2021(including separate collection of food waste).
Operational changes made historically include:
• Treatment of a proportion of the residual waste stream at Suez's existing EfW facilities on Teesside, in particular the facility at Haverton Hill, Billingham
• modification of the technology from production of compost using open windrows to production of a compost like output via an In Vessel Composting (IVC) facility and landfill of the residue to meet the requirements of the Animal By-products Regulations
• use of the residue from the mechanical treatment of the residual waste as a Refuse Derived Fuel for use in energy from waste to minimise biologically active waste going to landfill to comply with the Landfill Allowance Trading Scheme.
Further changes to now be incorporated in the variation include:
• Convert Byker Resource Recovery Centre from a Mechanical Biological Treatment (MBT) facility to a traditional Waste Transfer Station (WTS) capable of receiving additional waste volumes not currently delivered there to allow alignment with the TV ERF requirements and future recycling collection and treatment (including separate food waste).
• Changes required to implement the statutory responsibilities on councils to provide certain waste services, for instance a weekly food waste collection, and greater segregation of recyclable material at the kerbside under the Environment Act 2021.
• Close Benwell WTS to enable the authority to include the site in its waste infrastructure review.
• Close the Ellington IVC.
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
Section five. Award of contract/concession
Contract No
000171
Title
The provision of a waste recovery and disposal service
A contract/lot is awarded: Yes
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract
27 May 2022
five.2.2) Information about tenders
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor/concessionaire
SUEZ Recycling and Recovery UK Ltd
SUEZ House, Grenfell Road, Maidenhead
Berkshire
SL6 1ES
Country
United Kingdom
NUTS code
- UKC22 - Tyneside
The contractor/concessionaire is an SME
No
five.2.4) Information on value of contract/lot/concession (excluding VAT)
Initial estimated total value of the contract/lot/concession: £13,300,000
Total value of the contract/lot/concession: £13,300,000
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
Newcastle City Council
Newcastle upon Tyne
Country
United Kingdom