Section one: Contracting authority/entity
one.1) Name and addresses
SOMERSET COUNCIL
County Hall
TAUNTON
TA14DY
Contact
paul skuse
Telephone
+44 7833446435
Country
United Kingdom
Region code
UKK23 - Somerset
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Somerset County Waste and Recycling Services
Reference number
2004/S 174368-201
two.1.2) Main CPV code
- 90514000 - Refuse recycling services
two.1.3) Type of contract
Services
two.2) Description
two.2.3) Place of performance
NUTS codes
- UKK23 - Somerset
two.2.4) Description of the procurement at the time of conclusion of the contract:
Somerset County Council ("Council") awarded a contract to Suez Recycling and Recovery Limited ("Suez") in March 2020 following a procurement for project management services for the delivery of Waste Collection and Recycling Services for Somerset Waste Partnership formed by the County Council and District Councils. Council's municipal waste strategy and its landfill directive obligations to divert biodegradable municipal waste from landfill (the "Contract"). The procurement was advertised in OJEU Contract Notice (2004/S 174368-201).
two.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession
Duration in months
120
Section four. Procedure
four.2) Administrative information
four.2.1) Contract award notice concerning this contract
Notice number: 2004/S 201-174368
Section five. Award of contract/concession
Contract No
DN309286
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract/concession award decision:
28 March 2020
five.2.2) Information about tenders
The contract/concession has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor/concessionaire
Suez Recycling and Recovery Limited
Suez House, Grenfell Road
Maidenhead
SL6 1ES
Country
United Kingdom
NUTS code
- UKJ1 - Berkshire, Buckinghamshire and Oxfordshire
Companies House
02291198
The contractor/concessionaire is an SME
No
five.2.4) Information on value of the contract/lot/concession (at the time of conclusion of the contract;excluding VAT)
Total value of the procurement: £570,000,000
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
Public Procurement Review Service
London
Country
United Kingdom
Section seven: Modifications to the contract/concession
seven.1) Description of the procurement after the modifications
seven.1.1) Main CPV code
- 90514000 - Refuse recycling services
seven.1.3) Place of performance
NUTS code
- UKK23 - Somerset
seven.1.4) Description of the procurement:
Somerset County Council ("Council") awarded a contract to Suez Recycling and Recovery Limited ("Suez") in March 2020 following a procurement for project management services for the delivery of Waste Collection and Recycling Services for Somerset Waste Partnership formed by the County Council and District Councils. Council's municipal waste strategy and its landfill directive obligations to divert biodegradable municipal waste from landfill (the "Contract"). The procurement was advertised in OJEU Contract Notice (2004/S 174368-201).
seven.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession
Duration in months
120
seven.1.6) Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession:
£617,000,000
seven.1.7) Name and address of the contractor/concessionaire
Suez Recycling and Recovery
SUEZ House
Maidenhead
SL6 1ES
Country
United Kingdom
NUTS code
- UKJ1 - Berkshire, Buckinghamshire and Oxfordshire
Companies House
02291198
The contractor/concessionaire is an SME
No
seven.2) Information about modifications
seven.2.1) Description of the modifications
Nature and extent of the modifications (with indication of possible earlier changes to the contract):
increase in value
seven.2.2) Reasons for modification
Need for modification brought about by circumstances which a diligent contracting authority/entity could not foresee.
Description of the circumstances which rendered the modification necessary and explanation of the unforeseen nature of these circumstances:
Increase in the value of the contract in excess of the permitted tolerance.
There have been a several commercial challenges since the start of the contract including Covid, and national driver shortages. Consequently, SUEZ have also disclosed significant losses on the contract, to the extent it has become unviable. SUEZ have advised that without a formal variation to the contract to increase payments, they will consider renouncing the contract. This would mean walking away from the contract, withdrawing all services and accepting the contractual consequences of paying the Council damages that arise (subject to contractual caps).
The Council considers that it is essential to increase the value of the contract over its remaining term by £47,000,000 as a one of final settlement in order to make the contract viable for the supplier over the remainder of its term, and so protecting a statutory public service. Other options have been considered but it is considered that these are more expensive for the Authority or represents a greater risk.
The modification does not alter the overall nature of the contract, which remains for the collection and recycling of waste in Somerset and continues to reflect the successful transition to "Recycle More".
The increase in price is below 20% of the original (as-awarded) contract value for the initial 10 year term and so does not exceed (and is significantly less than) 50% of the value of the original contract.
seven.2.3) Increase in price
Updated total contract value before the modifications (taking into account possible earlier contract modifications, price adaptions and average inflation)
Value excluding VAT: £570,000,000
Total contract value after the modifications
Value excluding VAT: £617,000,000