Public procurement notice: Modification Of A Contract/Concession During Its Term
Published: 2016-01-23
Buyer: Wigan Borough Council
Country: UK
Region: Greater Manchester
Contract type: Services
Procedure: Competitive dialogue
CPV classification: 09310000 | 45111000 | 45210000: Building construction work | 45213270 | 45222100

Technical requirements: Residual Waste Treatment, Disposal, Management of Household Waste Recycling Centres and Transfer Station (s) Solutions.
The original contract, competitively procured through a Competitive Dialogue process pursuant to Contract Notice 2012/S 43-070600, was to deliver a long-term solution for the Authority in addressing its needs in diverting municipal solid waste (MSW) from landfill including for the delivery of Residual Waste Treatment and Disposal, Management of Household Waste Recycling Centres and Management of Transfer Station (s) and related services. The initial contract included the operation and management of a transfer station at Makerfield Way, Higher Ince, Wigan (Kirkless 1) to accept, sort and transfer waste and recyclates, but not including organic waste (i.e. green and food waste), collected by or on behalf of the Authority. The 25 year contract was awarded to FCC Waste Services (UK) Limited which commenced on 1.4.2015 and has a contract value of 320 000 000 GBP.
Residual Waste Treatment, Disposal, Management of Household Waste Recycling Centres and Transfer Station (s) Solutions.
The information provided within ‘Section II) Object’ and ‘Section V) Award of contract/concession’ within this Modification Notice refers to the original contract only as put in place pursuant to OJEU Contract Notice 2012/S 43-070600 published on 2.3.2012. The information provided within ‘Section VII.1.4) Description of the Procurement’ refers to the original contract plus the modifications to that contract. Further details of the contract modification and the reasons for the modification can be viewed within the Voluntary Ex Ante Transparency Notice 2015/S 085-153589 published on 2.5.2015.
In accordance with Regulation 86 (Notices of decisions to award a contract), Regulation 87 (Standstill Period) and Regulations 91 (Enforcement of duties through the Court) of the Public Contracts Regulations 2015 or in accordance with Regulation 32 (Information about contract award procedures), Regulation 32A (standstill period), Regulation 47 and Regulations 47D to 47N (inclusive) of the Public Contracts Regulations 2006 (as amended) as appropriate.
The original contract, competitively procured through a competitive dialogue process pursuant to Contract Notice 2012/S 43-070600, was to deliver a long-term solution for the Authority in diverting municipal solid waste (MSW) from landfill including for the delivery of Residual Waste Treatment and Disposal, Management of Household Waste Recycling Centres and Management of Transfer Station (s) and related services. The initial contract included the operation and management of a transfer station at Makerfield Way, Higher Ince, Wigan (Kirkless 1) to accept, sort and transfer waste and recyclates, but not organic waste, collected by or on behalf of the Authority. Following the modification of the contract (through the Authority change mechanism in the contract), the contract now includes the management and operation of a new Organic Waste Treatment Transfer Station (Kirkless 2). The estimated value of additional services under the variation is 1 810 000 GBP over a 7 year term.
The modification to the original contract includes the management and operation of a new Organic Waste Transfer Station (Kirkless 2). The service includes accepting collection vehicles which have collected organic waste and enabling them to tip the material in designated bays, holding the material securely before loading the material onto larger vehicles (provided by a separately appointed organic waste transport and treatment contractor). The estimated value of additional services under the variation is 1 810 000 GBP over a 7 year term. The modification follows the abandonment of a competitive dialogue process for an organic waste treatment and disposal solution (OJEU Contract Notice 2012/S 43-070599) to build a combined reception and treatment facility on the Kirkless 2 site to deal with the Authority's organic waste. No tenders were received which met the Council's requirements for value for money, leading to the Authority deciding to build the Kirkless 2 transfer station.
The services cannot for economic and technical reasons be provided by a contractor other than FCC because of interoperability of the 2 transfer stations, the interdependency of activities and the economies of scale by utilising the same loading equipment and staff. Awarding the contract to a different provider would cause significant inconvenience and duplication of costs in terms of management structures, backup plant and equipment which would diminish the quality of service provided and result in poor value for money for the Authority. The Authority also considers that under Regulation 32 (2) (b) there are technical reasons giving rise to FCC being the only provider capable of delivering the requirement. This is due to the volatility in green waste tonnage volumes, making it unviable for any provider other than FCC to deliver given the interoperability of the 2 facilities and the economies of scale FCC has given proximity to the Kirkless 1 site. (See VEAT 2015/S 085-153589).