Havering London borough council has opted to combine waste and recycling collections with other services under a single contract worth £10m.
Havering will begin the procurement process in September 2021
Waste and recycling collections will now come under an integrated contract which includes street cleansing, trunk road cleaning, and weed control services.
The procurement process will begin in September 2021 and is currently set to be completed in July 2023.
The current collections contract expires in 2023 and is held by Serco , which won the contract worth £40 million in 2014.
Decision
In a cabinet meeting report from the 7 July, the council revealed that bringing these services under one contract will present a more appealing market opportunity.
It explained: “If the waste and recycling collection contract was retendered by itself, the market is less interested in this procurement opportunity as it is of lower value than many other procurement opportunities in the wider market.”
Serco is the current contractor for waste and recycling collections
The council added that procuring all services under one contract will offer “best value for money” and allow for the transfer of financial risks to the selected contractor.
The report said: “It also provides an opportunity to demonstrate that the council is obtaining best value for money by carrying out an open and transparent process and engaging with the market. The competitive tension provided through a procurement process incentivises innovation and reduces cost.”
Other benefits of procuring the integrated contract includes increased accountability and more collaborative working with operatives.
ELWA
Havering London borough council is one of the waste collection authorities under the East London Waste Authority (ELWA).
The integrated contract decision comes as the ELWA prepares its new waste strategy, which works to evaluate “considerable change” coming to national waste policy over coming years.
This includes putting plans in place to “develop successor arrangements” to the waste disposal contract currently held by Renewi, which is set to end in 2027.
In the strategy, the ELWA said it will work to procure a contract that is more in line with national policy, as the current contract, which started in 2002, and was more designed to achieve high levels of diversion of waste from landfill rather than high recycling rates.
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Source: letsrecycle.com Waste Managment
