2223-0164 Textiles Concession

Tender description

Islington Council has textile containers from a designated supplier placed in areas of high footfall across the borough on both public and estate land. Primarily, this is to reduce the volume of textiles in the waste stream and divert this resource to recycling and reuse. The Council gives the contractor the right to locate, maintain and collect from designated textile banks from agreed locations within Islington. Through a services concession contract between the supplier and the council, the textile containers also generate income for the council based on a revenue share of the price per tonne of collected textiles. Lot 1: Islington Council has textile containers from a designated supplier placed in areas of high footfall across the borough on both public and estate land. Primarily, this is to reduce the volume of textiles in the waste stream and divert this resource to recycling and reuse. The Council gives the contractor the right to locate, maintain and collect from designated textile banks from agreed locations within Islington. Through a services concession contract between the supplier and the council, the textile containers also generate income for the council based on a revenue share of the price per tonne of collected textiles. The services concession contract is a commercial contract where the contracting authority entrusts the provision and the management of services to the economic operator and the consideration consists of either solely the right to exploit the services that are the subject of the contract or of that right together with payment. The operating risk sits with the concessionaire which means that there is no guarantee of breaking even on investments and costs incurred. The estimated value of this concession contract is based on the total turnover of the concessionaire generated over the duration of the contract, including all possible extensions. This has been estimated in consideration for services which are the object of the concession contract and for the supplies incidental to such services. The value is net of value added tax. The value of the contract is estimated to be £150,000 per annum based on the overall price for tonnage of textiles. The total value is therefore estimated to be £750,000 however, the value may fluctuate.