To submit a joint report by the Head of Function (Resources)/Section 151 Officer and the Interim Head of Highways, Waste and Property Services.
Minutes:
The joint report of the Head of Function (Resources)/Section 151 Officer and the Acting Head of Service (Highways, Waste and Property) with regard to the delivery of the Council’s Waste Collection and Street Cleansing Service as from April, 2021 was presented for the Executive’s consideration.
The Executive was provided with background information about the current contract which has been delivered externally by Biffa Ltd. since 2012 and which comes to an end on 31 March, 2021. In order to assist in determining whether the service post March, 2021 is to be delivered by re-procuring externally or by bringing the contract in-house, the Council commissioned WRAP Cymru (at no cost to the Authority) to assist in the evaluation process and to provide an assessment of the financial implications of internal delivery in comparison with the cost of continued externalisation. The report by WRAP Cymru was provided to the Executive and detailed the qualitative factors and risks associated with the two options broken down into specific areas.
The Head of Function (Resources)/Section 151 Officer outlined the main issues to be considered in relation to internalisation/externalisation and what both entailed. Should the Executive approve continuing to externalise the contract and commence a formal procurement process in order to appoint a contractor, which is the recommended option, then there are pricing options in connection with service provision that can be considered for inclusion in the tender information documentation; the Officer elaborated upon these and highlighted the considerations attached to each. These were listed in recommendation 3 of the report.
The Executive discussed the service delivery options with the Officers and having regard to the information provided, was in agreement that based on cost and best value considerations, continued externalisation of the service is the most beneficial option to the Council noting also the views of Scrutiny on this and other points as aired in a constructive discussion on the matter at the meeting of the Partnership and Regeneration Scrutiny Committee on 13 June.
The Executive raised a number of questions on the information presented and sought clarity also on the length of the contract noting that some flexibility was needed. Having reflected on and debated the matter, and having considered the clarifications provided by Officers and the input of Scrutiny, the Executive was agreed that a formal procurement process to appoint a contractor for the new waste management contract should begin in accordance with recommendations 1 to 3 of the report but with the following amendments/ additions –
• Option for contract extension – the contract should run for an initial period of 8 years with the option to extend the contract for up to a maximum of 12 years (making a potential of 20 years in total) subject to a comprehensive review after 6 years.
• Powers to be delegated to the Head of Service (Highways, Waste and Property) – powers to be thus delegated as per recommendation 2 of the report should be exercised in consultation with the Portfolio Holder and,
• Pricing options to be included in the tender information documentation as per recommendation 3 of the report - these should additionally include a request to bidders to provide tender prices based on paying both the National Living Wage and on paying the Real Living Wage.
It was resolved to approve recommendations 1 to 3 of the report with regard to commencing a formal procurement process (as described in Appendix 3) to appoint a contractor to undertake the Waste Collection and Street Cleansing Contract from 5 April, 2021 subject to the amendments made at the meeting in respect of the following -
• Option for contract extension;
• Powers to be delegated to the Head of Service (Highways, Waste and Property) which are to be exercised in consultation with the Portfolio Holder and,
• Pricing options to be included in the tender information documentation to additionally include a request to bidders to provide tender prices based on paying both the National Living Wage and on paying the Real Living Wage.