Proposed contract modification for 006635 - Household Waste Recycling (under Regulation 72(1)(c) of the Public Contracts Regulations 2015) between Newcastle City Council and Biffa Waste Services Ltd

Tender description

In 2019 Newcastle City Council "the Council" awarded a contract to Biffa Waste Services Ltd "the Contractor" for the provision of servicing, treatment and disposal of separate materials collected from the City's three Household Waste Recycling Centres ("the Contract"). The Contract start date was 8 July 2019 with an initial term of 2 years and 2 x 12-month extension options. The Council has exercised both of those options, thereby giving a current contract expiry date of 7 July 2023. Due to circumstances which it could not have foreseen (as explained more fully in section VI.3) Additional information below, the Council proposes to make a contract modification to extend the term of the Contract by a further 23 months and 24 days. This modification will result in a revised contract expiry date of 30 June 2025. Lot 1: The Council's current contract for the provision servicing, treatment and disposal of separate materials collected from the City's three Household Waste Recycling Centres is due to expire on 7th July 2023. The Council has a statutory duty to provide this service and therefore needs to make arrangements for the provision of the services beyond this date. The Covid pandemic, war in Ukraine and unprecedented increases in fuel prices have resulted in global volatility in the waste industry and recyclate markets at the present time. These factors could not have been foreseen by the Council when the contract was awarded in 2019. Together with revisions to the timetable to deliver the National Resources and Waste Strategy, the above factors mean that a competitive procurement at this time is unlikely to deliver better value than that already achieved by the current contract. As such, in light of the unforeseeable circumstances above, the Council proposes to extend the Contract by a further twenty three months and twenty four days.