CABINET ENVIRONMENTAL SERVICES CONTRACTS

Transcription

1 Report No: 65/2016 PUBLIC REPORT CABINET 15 March 2016 ENVIRONMENTAL SERVICES CONTRACTS Report of the Director for Places (Environment, Planning & Transport) Strategic Aim: Meeting the health & wellbeing needs of the community Key Decision: Yes Exempt Information Cabinet Member(s) Responsible: Forward Plan Reference: FP/041215/05 No Councillor Tony Mathias, Portfolio Holder for Places (Highways, Environment, Transport and Community Safety) Contact Officer(s): Ward Councillors Dave Brown, Director for Places (Environment, Planning & Transport) Mark Loran, Senior Environmental Services Manager All DECISION RECOMMENDATIONS That Cabinet: 1. Approve the proposed evaluation methodology for the dry mixed recycling and green waste treatment contracts as set out in Appendix Delegate authority to award the contract in line with the evaluation criteria to the Director for Places (Environment, Planning and Transport) in consultation with the Portfolio Holder for Places ((Highways, Environment, Transport and Community Safety).

2 1 PURPOSE OF THE REPORT 1.1 To consider the evaluate methodology for the replacement contracts for: a. Dry mixed recycling treatment this involves receiving all of the kerbside mixed recycling collected from the grey wheeled bins, after which it is sorted into the various different material types before sending each material on to an appropriate reprocessor; and b. Green waste treatment this involves receiving all of the green waste from kerbside collections (green wheeled bins) and the CA Sites, after which it is screened, stored and processed to create compost. This can then be spread on agricultural land or, subject to meeting quality control requirements, can be sold on as a product. 2 BACKGROUND AND MAIN CONSIDERATIONS 2.1 The key changes that will be incorporated in the new contracts will be: a. to clarify the need for all of the relevant waste to be received, processed and marketed. To this end, there will be a requirement for a contingency arrangement in case the waste cannot be accepted at the main facility provided; b. to clarify the responsibilities for dealing with contamination; c. to strengthen reporting requirements to ensure the Council receives all data and other information required for the submission of statutory returns and to ensure legal compliance; d. to strengthen performance and payment elements that will ensure the contractors are incentivised to perform well and will be penalised financially for poor performance; and e. to introduce a variable cost element that tracks known/published market rates, as opposed to fixed prices with or without indexation. 2.2 The intention is to give the Council more protection against contractor failure, whilst balancing this against any significant budget pressures by evaluating tender returns using a 60/40 price/quality split. 2.3 It is noted that the location of the main facility and, to a lesser extent, the contingency facility, is a crucial factor as this impacts on the Council s haulage costs. As such, an internal cost element has been incorporated into the proposed evaluation methodology. 2.4 Appendix 1 includes full details of the proposed evaluation methodology. 3 TIMESCALES 3.1 The current contracts for the treatment of dry mixed recycling and green waste will expire on 31 April Interim arrangements are being finalised with service providers for a 3 month period to allow for any procurement delays.

3 4 ALTERNATIVE OPTIONS 4.1 The Council could deliver these services in-house. It is unlikely that this would be cost effective; however, this will be considered if the tender prices returned do not appear to represent good value for money for the Council. 5 FINANCIAL IMPLICATIONS 5.1 The financial implications will be dependent on the outcome of the procurement exercises. However, the price/quality split must be determined in advance. It is proposed that a 60/40 price/quality split is used. This weighting of price to quality will ensure a good quality service is provided by a Contractor with the means to ensure compliance with relevant legislation, whilst maintaining a primary focus on minimising the financial cost to the Council. 6 LEGAL AND GOVERNANCE CONSIDERATIONS 6.1 The procurement processes will be a single stage open tenders under the EU procurement regulations. The Council s contract procedure rules require Cabinet to approve the methodology for evaluating tenders that exceed the EU thresholds. Cabinet are also required to authorise the award to the contract. It is proposed that awarding the contract in line with the evaluation criteria is delegated to the Director for Places in Consultation with the Portfolio holder. 7 EQUALITY IMPACT ASSESSMENT 7.1 Equality impact screening indicates that an equality impact assessment is not required. 8 COMMUNITY SAFETY IMPLICATIONS 8.1 None. 9 HEALTH AND WELLBEING IMPLICATIONS 9.1 The proposed evaluation methodology includes an assessment of social benefits. 10 CONCLUSION AND SUMMARY OF REASONS FOR THE RECOMMENDATIONS 11.1 The recommendation is that Cabinet approves the proposed evaluation methodology for the above environmental services contracts (attached as Appendix 1) using a 60/40 price/quality split. This weighting of price to quality will ensure a good quality service whilst maintaining a primary focus on minimising cost to the Council. 11 BACKGROUND PAPERS 11.1 None.

4 12 APPENDICES 12.1 Appendix 1 Proposed Evaluation Methodology for Environmental Services Contracts A Large Print or Braille Version of this Report is available upon request Contact

5 Proposed Evaluation Methodoplogy for Environmental Services Contracts Appendix 1 Assessment criteria and weightings The evaluation of the Dry Mixed Recycling Treatment Contract and the Green Waste Treatment Contract will be subject to the following assessment criteria and weightings. Part 1 Technical Assessment % weighting 1a Mobilisation Plan What specific procedures and actions will the Contractor put in 5% place and take to ensure the seamless transition into the new Services at Service Commencement. 1b Resource and Staff Management Plan What general resources and what staff the Contractor will provide to deliver the Services, including: details of the number of staff to be employed at the main facility and at the contingency facility, to cover all opening hours and opening days, with details of proposed shift profiles; details of which relevant operating staff will hold a waste management Certificate of Technical Competence (CoTC) and any other relevant qualifications; 15% 1c details of any sub-contractors to be used to deliver the Services; an organogram showing the proposed Contract management structure, identifying key roles and supplemented by role descriptions, required experience, qualifications, duties and responsibilities; a copy of the Contractor's equal opportunities policies and details of how they will be applied (including but not limited to gender, race, disability, sexual orientation, religion and belief); a copy of the Contractor's staff welfare and disciplinary/grievance procedures and details of how they will be applied; details of the Contractor's training and development schemes, policies and procedures and how they will be applied; Operations and Service Delivery Plan What specific facilities will the Contractor put in place what specific policies and procedures will the Contractor put in place to ensure that all of the Contract Waste can be suitably received, processed and marketed including: complying with the relevant operational requirements of the Specification; details of the physical infrastructure that the Contractor will provide at both the main facility and the contingency facility; arrangements to receive the waste across a suitably maintained and calibrated weighbridge and for the provision of necessary documentation; arrangements for dealing with contamination, including reporting this to the Council, and where necessary quarantining loads; 20%

6 Proposed Evaluation Methodoplogy for Environmental Services Contracts Appendix 1 1d 1e 1f 1g Health and Safety Plan arrangements to minimise queuing and to minimise turnaround times (calculated between entrance weighbridge to exit weighbridge); arrangements for the screening and sorting the waste received; arrangements for disposing of or treating residues; arrangements for disposing of or treating contaminants; and arrangements for keeping screened and/or sorted materials separate to maximise their marketability. How the Contractor will comply with their Health & Safety obligations, including but not limited to: complying with the relevant health and safety requirements of the Specification; providing copies of health and safety policies, including for dealing with emergencies, and details of how they will be applied; providing risk assessment procedures for individual activities and facilities; having consideration of site specific characteristics and requirements; having due regard to specific staff roles, responsibilities and qualifications; health and safety training provision and awareness raising, including as part of staff inductions; and incident and accident monitoring, recording and reporting systems. Environmental Management Plan How the Contractor will manage and mitigate the environmental impacts of providing the Services, including: complying with the relevant environmnetal management requirements of the Specification; details of how the Contractor will meet its Duty of Care obligations; and consideration of individual site characteristics and requirements. Interface Plan How the Contractor will positively engage with the Council, including details of: commitment to attend routine contract meetings and adhoc meetings as necessary; meeting the routine reporting requirements; dealing with contamination issues as they arise; dealing with ad-hoc operational issues as they arise; and diverting the Council to use the contingency facility in the event that the main facility is unavalable. Materials Marketing Plan What markets and outlets for will the Contractor utilise to move on all materials received and processed through the Service, with reference to: quality protocols (where relevant); and 15% 15% 10% 15%

7 Proposed Evaluation Methodoplogy for Environmental Services Contracts Appendix 1 provision of contingency arrangements to be used in the event that a primary market or outlet is not available. 1h Social Impact and Prosperity Plan What local employment and engagement impacts will the Contractor deliver, including but not limited to: details of any proposed partnership working to the benefit of local organisations; details of any joint working with the third sector; and details of any other community benefits. All Technical Assessment elements 5% 100% The Technical Assessment will account for 40% of the total evaluation score. Part 2 Commercial Assessment % weighting 2a Gate Fee This cost will be applied per tonne of waste received and accepted by the Contractor. Although the mechanism needs to be finalised, the current intention is that It will track suitable published market rates with a quarterly update, so as to mitigate the risk of large budget pressures at the end of a contract year or contract period. For evaluation purposes this shall be modelled as follows: 90% 2b 2c The tendered Gate Fee multiplied by the anticipated/modelled annual tonnage for the relevant waste stream. Internal haulage costs to the main facility These costs should never actually be realised as they are integrated into other existing contractual arrangements, but an 'internal cost' mechanism is necessary to mitigate other elements of the evaluation criteria leading to the winning Contractor providing a main facility to which delivery of the waste is not feasible due to the distance from Rutland. For evaluation purposes this shall be modelled as follows: The travelling distance in miles for a return journey, subject to a suitable route for HGVs, between LE15 7LT and the main facility, multiplied by 1 as an average haulage rate per tonne per mile and then multiplied by the anticipated/modelled annual tonnage for the relevant waste stream. Internal haulage costs to the contingency facility These costs should never actually be realised as they are integrated into other existing contractual arrangements, but an 'internal cost' mechanism is necessary to mitigate other elements of the evaluation criteria leading to the winning Contractor providing a contingency facility to which delivery of the waste is not feasible due to the distance from Rutland. For evaluation purposes this shall be modelled as follows: 9% 1%

8 Proposed Evaluation Methodoplogy for Environmental Services Contracts Appendix 1 The travelling distance in miles for a return journey, subject to a suitable route for HGVs, between LE15 7LT and the contingency facility, multiplied by 1 as an average haulage rate per tonne per mile and then multiplied by the anticipated/modelled annual tonnage for the relevant waste stream. All Commercial Assessment elements 100% The Commercial Assessment will account for 60% of the total evaluation score.