Public procurement notice: Voluntary Ex Ante Transparency Notice
Published: 2018-12-18
Buyer: Birmingham City Council
Country: UK
Contract type: Services
Procedure: Contract award without prior publication
CPV classification: 45200000: Building and civil engineering work | 45213270 | 45232470 | 45259000 | 45453100
Estimated value: 161500000 GBP

Technical requirements: The award of a 5-year extension to a 25-year waste management contract (“Contract”) with Veolia ES (UK) Limited and Veolia ES Birmingham Limited (both collectively known as “Veolia”) originally awarded under the OJEU Contract Notice referred to in Section IV.2.1 below and which is due to expire on 16.1.2019. The estimated value of this extension over the 5-year term is in the region of 127 500 000 GBP.
(i) essential works to Tyseley Energy Recovery Facility (ERF), the Perry Barr and Kings Norton Waste Transfer and household waste recycling sites;
(ii) and other additional works to the Tyseley ERF as identified during the 5-year as being necessary for the effective operation of the ERF (together the “Combined Works”). The contracts have yet to be negotiated, but at this stage the estimated value of the Combined Works is in the region of 34 000 000 GBP.
The award of a 5-year extension to a 25-year waste management contract (“Contract”) with Veolia ES (UK) Limited and Veolia ES Birmingham Limited (both collectively known as “Veolia”) originally awarded under the OJEU Contract Notice referred to in Section IV.2.1 below and which is due to expire on 16.1.2019. The estimated value of this extension over the 5-year term is in the region of 127 500 000 GBP.
(i) essential works to Tyseley Energy Recovery Facility (ERF), the Perry Barr and Kings Norton Waste Transfer and household waste recycling sites;
(ii) and other additional works to the Tyseley ERF as identified during the 5-year as being necessary for the effective operation of the ERF (together the “Combined Works”). The contracts have yet to be negotiated, but at this stage the estimated value of the Combined Works is in the region of 34 000 000 GBP.
— a suitable procurement time period for the recommissioning of the Council’s complex waste management and disposal arrangements to be completed. The Council anticipates commencing this procurement in 2019,
— greater performance data and information to be collected about the Tyseley ERF and which can then be shared with bidders as part of the re-procurement,
— a suitable mobilisation time period and time period to obtain new consents/environmental permits following the re-procurement,
— the Combined Works to the ERF to be undertaken. This would then enable the ERF to be in a good operational standard in preparation for handover to the new operator following the re-procurement,
— and the timely delivery of these Combined Works to offer improved long-term value for money in the delivery of the waste services.
The Council considers for technical and economic reasons that Veolia is the only suitable provider capable of providing continuity of waste services during the 5-year extension period for the following reasons:
— Veolia’s historic and operational knowledge of the ERF will minimise down time at the ERF and maximize ERF plant availability, whilst the ERF essential works are being undertaken,
— the size and complexity of the existing operations across a number of waste management sites, including the ERF,
— and the economic and operational impact of seeking to mobilise a new contractor for the extension period, including the costs and complexity of required staff transfers.


Winner: Veolia ES (UK) Limited
Award value: 161500000