Advance notification of a Recycling Materials Broker - Expression of Interest Only

Tender description

Please note: Brokers who express their interest will be invited to complete an Outcome Based Business Plan only. Recycling Materials Broker Arrangement London Borough of Hounslow and its partner Recycle 360 wish to enter into an arrangement with a recycling materials broker, for the sale of sorted recycling materials into the reprocessing market while maximising the commercial income from the sales. On this basis, we are exploring the brokerage market to get a better understanding of how such an arrangement might work. It is our intention to review returns from interested parties, and subsequently enter such an arrangement. Therefore, we require Brokers to express their interest in providing these arrangements only. Background The London Borough of Hounslow (LBH) is an outer London local authority on the West boundary of the Greater London area. With a population of some 270,000 living in approximately 105,000 properties of various demographic and building type, the authority provides a comprehensive suite of waste and recycling collection services, including a kerbside sort for some 70,000 households. Lampton 360 was established by LBH in 2012 with the objective of trading local authority functions to make financial surpluses and return them to the Council. Lampton 360 is a company that is a wholly owned subsidiary of the Council and is designed to operate in a way that allows the company to generate business beyond the Council services it supplies by up to 20%. Recycle 360 is a Teckal compliant subsidiary of Lampton 360. The primary objectives for Recycle 360 are to provide high quality recycling and waste collection services on behalf of the LBH cost effectively and efficiently and to develop the commercial waste business to generate revenue growth up to the Teckal limit. Recycle 360 has been providing LBH’s waste collection services since October 2016 and in the last year several large service changes have been delivered. From end November 2017 Recycle 360 will be operating a newly developed Materials Handling Facility (MHF) – the Southall Lane Depot (SLD) – where it will bulk and sort recyclables for onward sale into the reprocessing market. In order to realise the best prices for this kerbside sorted material, LBH and Recycle 360 believe an arrangement with a competent waste broker specialist would be an advantage, through their expertise and economies of scale. Waste Collection and MHF Kerbside collections to approx. 71,000 are made using Romaquip Kerbsider specialist vehicles, with a four-container system. The following materials are collected • Carboard • Paper (note with card mixed in) • Glass • Textiles • Mixed plastics and cans • Small WEEE • Food waste Additionally, communal recycling bins are collected weekly: • Cardboard • Mixed plastics • Paper • Glass • Cans There is a future aspiration to change this system to match the kerbside streams mix. From November 2017, Recycle 360 will deliver the collected materials to a new, purpose built Materials Handling Facility, the Southall Lane Depot, Southall Lane, Southall, UB2 5AG (NB New postcode currently mapping in Google, satnavs etc at the wrong location). This MHF will bulk materials for onward sale into the reprocessing market. The MHF has a sorting line for separating the mixed plastic and cans, and baling equipment. The following outputs are expected: • Baled mixed plastics • Baled steel cans • Baled aluminium cans • Baled cardboard • Textiles • Loose paper (currently disposed under contract until xxxx) • Loose glass (currently disposed under contract until xxxx) • Food waste (disposed via West London Waste Authority) • WEEE (disposed via West London Waste Authority) The partnership also operates a Household Reuse and Recycling Centre at Space Waye, North Feltham Trading Estate, Pier Road off Faggs Road, TW14 0TH. This site captures a variety of recycling materials from both domestic and trade sources. The methodology of sale from this site is under review, with the potential for some materials, e.g. cardboard and mixed plastics to be baled for onward sale via the MHF. Keywords: Broker