Section one: Contracting authority
one.1) Name and addresses
Leicestershire County Council
County Hall, Leicester Road, Glenfield
Leicester
LE3 8RA
Contact
Mrs Kay Springthorpe
Telephone
+44 1163050375
Country
United Kingdom
Region code
UK - United Kingdom
Internet address(es)
Main address
https://www.eastmidstenders.org/index.html
Buyer's address
https://www.eastmidstenders.org/index.html
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
Contract for the Treatment of Post 2020 Residual Waste
Reference number
DN379327
two.1.2) Main CPV code
- 90500000 - Refuse and waste related services
two.1.3) Type of contract
Services
two.1.4) Short description
Contract for the Treatment of Post 2020 Residual Waste
two.1.6) Information about lots
This contract is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Lowest offer: £150,000,000 / Highest offer: £650,000,000 taken into consideration
two.2) Description
two.2.2) Additional CPV code(s)
- 90510000 - Refuse disposal and treatment
- 90513000 - Non-hazardous refuse and waste treatment and disposal services
two.2.3) Place of performance
NUTS codes
- UKF11 - Derby
- UKF12 - East Derbyshire
- UKF13 - South and West Derbyshire
- UKF14 - Nottingham
- UKF22 - Leicestershire CC and Rutland
- UKG13 - Warwickshire
- UKG24 - Staffordshire CC
two.2.4) Description of the procurement
The contract is for the treatment of residual waste.
The contract will be primarily for residual waste arising within Leicestershire but may include waste that arises from other Waste Disposal Authorities.
The potential total contract value could therefore vary from between 150 000 000 GBP to 650 000 000 GBP over the potential twenty five year period and subject to the total tonnage treated.
Leicestershire currently manages household waste through a two-tier authority system with
seven Waste Collection Authorities (WCAs) and one Waste Disposal Authority (the Council).
The procurement for the Treatment of Post 2020 Residual Waste was run by Competitive Dialogue process with 3 stages of dialogue.
Stage 1 ISOS 70% Quality 30% Price of which there was 7 bidders.
Stage 2 ISDS 50% Quality 50% Price of which there was 5 bidders.
Stage 3 ISTF 30% Quality 70% Price of which there were 2 bidders.
The contract has a minimum duration of 8 years but with the option for the Council to extend by periods of one or more years to a maximum of 25 years.
two.2.5) Award criteria
Quality criterion - Name: Quality / Weighting: 30
Price - Weighting: 70
two.2.11) Information about options
Options: No
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Competitive dialogue
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
four.2) Administrative information
four.2.1) Previous publication concerning this procedure
Notice number: 2019/S 000-000057
Section five. Award of contract
Title
Treatment of Post 2020 Residual Waste
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
19 October 2022
five.2.2) Information about tenders
Number of tenders received: 2
Number of tenders received from SMEs: 0
Number of tenders received from tenderers from other EU Member States: 0
Number of tenders received from tenderers from non-EU Member States: 0
Number of tenders received by electronic means: 2
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
Biffa Waste Services Ltd
Cressex Head Office, Coronation Road
High Wycombe
HP12 3TZ
Country
United Kingdom
NUTS code
- UK - United Kingdom
The contractor is an SME
No
five.2.4) Information on value of contract/lot (excluding VAT)
Lowest offer: £150,000,000 / Highest offer: £650,000,000 taken into consideration
Section six. Complementary information
six.3) Additional information
This contract opportunity was published in the OJEU by way of a Contract Notice on 9 July 2019 (ref 2019/S 130-319454). The contract entered into with the winning supplier is within the scope of the above Contract Notice.
As set out in more detail below, the Council and the Contractor agreed to some modifications to the contract prior to contract signature. The agreed modifications fall within the scope of negotiations that are permitted in accordance with Regulation 30(20) of the Public Contracts Regulations 2015 (PCR 2015).
The Council has agreed to remove the restriction on the indexation mechanism which limited the contractual annual price increase to no more than 3%. This is balanced by a right for the Council to assess the cost viability at specific points during the contract before the end of the minimum term of the contract (2031) using a benchmarking process and subsequently either:
1. reduce the rate per tonne; or
2. lower the tonnage guaranteed by the Council by up to 20,000 tonnes per annum; or
3. terminate the Contract earlier than 2031.
This change reflects the fact that the current economic circumstances (in which the contract is being signed) are very different compared to those that were present at the time the procurement was advertised and dialogued. Whilst a rise in indexation was possible, the present global circumstances have caused inflation to increase to a degree that was unforeseen. Under Regulation 72(1)(c) a modification can be made as a result of circumstances which a diligent contracting authority could not have foreseen. The modification does not alter the overall nature of the contract and any increase in price does not exceed 50% of the value of the original proposed contract.
In addition to the above the following changes have been made to the Contract:
• The guaranteed annual tonnage under the contract has been amended to 40,000 from the 45,000 tonnes as advertised in the OJEU Notice which is an insubstantial reduction that gives the Council additional flexibility.
• One element of the Secondary Waste Types has been reclassified as a Primary Waste Type (shredded non-size limited) which will create costs savings for the Council.
• The contract commencement date remains between 01/04/2021 and 01/04/2023 as advertised but during this period there will be a commissioning period whereby a limited amount of waste is due to be delivered to Contractor’s facility.
These changes are to the benefit of the Council, do not materially modify essential aspects of the tender or the procurement and do not risk distorting competition or causing discrimination.
six.4) Procedures for review
six.4.1) Review body
High Court of Justice
London
WC2A2LL
Country
United Kingdom