The Provision of a Waste Recovery and Disposal Service

CPV: Refuse and waste related services

Procedure method

Award procedure without prior publication of a call for competition

Legal basis

CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)

Procurement category

Services

Notice status

Awarded without competition

Procurement threshold

Unspecified in notice

Regulatory regime

Standard

Commercial structure

Stand-alone contract (no framework)

Competition type

Direct award (no call for competition)

GPA / WTO covered

Yes (GPA)

Recurring procurement

Unspecified in notice

First published

27 May 2022, 15:21 BST

Last source update

27 May 2022, 15:21 BST

Authority reference

000171

FTS notice number

2022/S 000-014945

Classification (CPV)

Refuse and waste related services

Delivery area

North East (UKC22)

Official registry OCID

ocds-h6vhtk-034107 Find a Tender

Why no open competition

The procurement falls outside the scope of application of the directive

Published justification

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.

• SUEZ Recycling and Recovery UK LtdAwarded supplier SUEZ House, Grenfell Road, Maidenhead, Berkshire, North East, SL6 1ES

No document links were published on the notice.