Proposed contract modification to Processing of Recyclable Material (under Regulation 72 (1) (c) of the Public Contracts Regulations 2015) between Newcastle City Council and J&B Recycling Limited

Tender description

In 2019 The Council of the City of Newcastle ("the Council") awarded contract 006639 to J&B Recycling Limited ("the Contractor") for the processing of recyclable materials ("the Contract"). The Contract start date was 1st October 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 of 30th September 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 two years. This modification will result in a revised contract expiry of 30th September 2025. The Agreement was varied by way of deed of variation on Monday 13 November 2022 as explained below in section II.2.4. Lot 1: In 2019 Newcastle City Council "the Council" awarded a contract to the J&B Recycling Limited "the Contractor" for The processing of recyclable materials including through a materials recycling facility ("the Contract"). The Contract start date was 1st October 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 30th September 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 two years. This modification will result in a revised contract expiry date of 30th September 2025. The agreement was varied by a variation letter dated 10 November 2022. The contract is subject to increased payment for diesel fuel because of reforms introduced in the Finance Bill 2021. Via the above variation of 10 November 2022 The Council has agreed to make a concessionary £1 per tonne to cover 'red diesel' costs from 1 April 2022 until the expiry of the agreement.