Refuse and waste related services

Tender description

Leicestershire County Council (‘the Council’), in 2018, managed approximately 160 000 tonnes of residual waste per annum (pa). At present the Council utilises landfill disposal for a significant quantity of residual waste. As part of the Leicestershire Municipal Waste Management Strategy, the Council wishes to move its waste up the Waste Hierarchy by procuring non-landfill treatment capacity for residual waste; with an option to increase tonnages at a later date. The likely commencement date for this contract is between 1.4.2021 and 1.4.2023 and would continue until at least 2031.The Council shall be able to break from the contract from 31.3.2031 and the successful bidder shall be able to break from the Contract from 31.3.2034. There could be possible further extension or extensions that take the total contract term up to a maximum term of 25 years. The region of Leicestershire currently manages household waste through a 2-tier authority system with 7 Waste Collection Authorities (WCAs) and one Waste Disposal Authority (the Council). In 2018, a total of circa 327 000 tonnes per annum (pa) of municipal waste was collected from both commercial and household premises by these authorities of which approximately 160 000 tonnes pa of this was residual waste. It is forecast that by 2021 168 500 tonnes pa of residual waste will be required to be sent for treatment or disposal. Approximately 22 000 tonnes would be ‘bulky’ residual waste arising from WCA collections and waste deposited at fourteen Recycling and Household Waste Sites (Household Waste Recycling Centres). The remaining c. 146 500 is expected to arise from ‘kerbside’ collections from businesses and householders. The Council currently anticipates that it will initially require a treatment solution for between 45 000 to 60 000 tonnes pa of residual kerbside ‘black bag’ waste. However, the Council intends to dialogue on the options available to increase the tonnage required to be treated over the duration of the contract to accommodate increases of waste due, but not limited to, national waste strategies, waste growth and contingency arrangements for other contracts. Additionally, bidders will be requested to submit proposals for the treatment of other types of ancillary residual waste (such as 'bulky' residual waste) during the term of the contract. The Council does not guarantee any tonnage of such ancillary residual waste will be required to be treated during the contract term and the pricing options for the treatment of such ancillary residual waste shall not form part of the financial evaluation during the procurement. Additionally, the Council wishes to explore the opportunities under this procurement of providing planned and unplanned contingency arrangements for the waste being managed under its other treatment contracts. The contract will be primarily for residual waste arising within Leicestershire but may include waste that arises from other Waste Disposal Authorities; such waste is intended to be incorporated into the overall tonnage requirements under the contract but is not envisaged to significantly increase the Council’s treatment tonnage requirements stated previously in the short to medium term. Additional contracting authorities included in this notice are Derby City Council, Derbyshire County Council, Nottingham City Council, Rutland County Council District Council, Staffordshire County Council and Warwickshire County Council. The potential total contract value could therefore vary from between 150 000 000 GBP to 465 000 000 GBP over the potential twenty five year period and subject to the total tonnage treated.