Agenda Item No






The Vale of Glamorgan Council


Cabinet Meeting: 10 March, 2014


Report of the Cabinet Member for Environment and Visible Services


Waste Management and Cleansing - Tenders for the Reprocessing of Co-mingled Recyclable Materials - 1st April 2014 - 31st March 2017 (Option to extend to 31st March 2018)


Purpose of the Report

1.         To seek approval for the award of a contract to treat the Council's co-mingled municipal recyclable materials from 2014 to 2018.


1.         That, after full consideration of the financial details contained within a further report on this agenda at Part II, Cabinet approve the appointment of G A E Smith (Holdings) Ltd t.a. Casepak Ltd Feldspar Close Enderby Leicester LE19 4SD as 'Preferred Bidder' for co-mingled municipal dry recycling material reprocessing from 2014 - 2018; including the optional 1 year extension.

2.         That the Council's Head of Legal Services be authorised to agree the terms and  enter into a contract with the Preferred Bidder.

3.         That the urgent decision procedure as set out in article 13.09 of the Council's Constitution be used in view of the need to permit a contract start date of 1st April 2014.

Reasons for the Recommendations

1.         To enable the Vale of Glamorgan Council to enter into a formal contract with the Preferred Bidder  G A E Smith (Holdings) Ltd t.a. Casepak Ltd Feldspar Close Enderby Leicester LE19 4SD; for the processing of its dry recyclable materials, including the haulage of the material, for the period 2014 to 2018

2.         To ensure that all financial and contract regulations are met.

3.         To allow the new contract to start on the termination date of the current temporary arrangement with SiteServ.


2.         Cabinet on the 27th January 2014 minute No C2170 refers–

RESOLVED - T H A T the exercise of the Managing Director’s Emergency Powers as indicated below be noted –

(m)         Temporary Contractual Arrangements to Allow the Continued Recycling of the Council's Collected Municipal Dry Recycling -

Authority to:

(1)          Make arrangements with SITA Ltd in the event of SiteServ being unable to continue the existing contingency arrangement for the bulking and reprocessing of the Council's dry recycling at a rate of £35 per tonne.

Make arrangements:

(i)           with SiteServ to continue the present contingency arrangements between Biffa and SITA Ltd at a rate of £27 tonne between the period of 1st February 2014 to 31st March 2014 or

(ii)          in the event of SiteServ being unable to continue the existing contingency arrangements for the bulking and reprocessing of the Council's dry recycling make arrangements with SITA at a rate of £35 per tonne between the period of 1st February 2014 to 31st March 2014.

(3)          Extend the procurement period for the new long term dry recycling contract to 31st January to allow all necessary contract formalities to be in place for a 1st April 2014 commencement.

(Scrutiny - Economy and Environment)

Reason for decisions

To inform Cabinet.

3.         Cabinet having previously resolved at its meeting held on the 23rd September 2013 (Minute C2031 refers):

(1)          THAT the Director of Visible Services and Housing be authorised to progress a formal procurement process for the treatment of all dry municipal recycling.

4.         This resolution followed the collapse of a collaborative procurement process led by Caerphilly County Borough Council, where as a result of a dispute between Caerphilly County Borough Council and Sita UK Ltd, this Council was left without a formal contract option.  This meant that the Council needed an urgent temporary arrangement for its recycling, which was agreed, and to procure its own 'stand alone' contract arrangements.  (Minute No. C2031 refers).

5.         A new OJEU Notice relating to the Vale of Glamorgan's municipal co-mingled dry recyclate alone was therefore made on the 23rd September 2013 inviting bids for the reprocessing of the Council's municipal recycling, with nine service providers expressing an interest.

Relevant Issues and Options

6.         In accordance with Council's Financial Regulation and Standing Orders, this procurement was progressed utilising formal European Union compliant competitive tender processes, with tenders invited by public advert in an Open Tendering Procedure.  3 companies  finally submitting bids but only 2 compliant bids were received prior to the specified closing time:

·           Biffa Municipal Limited, Coronation Road, Cressex Industrial Estate, High Wycombe, HP10 3TZ;

·           G A E Smith (Holdings) Ltd t. a. Casepak Ltd Feldspar Close Enderby Leicester LE19 4SD;

The financial details of these two bids are shown in the following Part II report on this agenda.

7.         A third tender was received but it was deemed non-compliant.

Resource Implications (Financial and Employment)

8.         The resources required to carry out this re-procurement process, including the interim arrangements required, have been met from the Waste Management & Cleansing revenue budget.

9.         The details of the new contract costs are contained within the Part II report.

Sustainability and Climate Change Implications

10.      The recycling of municipal household waste is considered a major contributor to achieving sustainable waste management and climate change reduction. Any cessation of the Council's recycling services, no matter how short, would have a negative impact on the Council's policies to improve both sustainability and our impact on the environment.

Legal Implications (to Include Human Rights Implications)

11.      The Council’s Head of Legal Services will progress the contractual completion of all matters relating to the new contract if approved by Cabinet.

12.      It is a legal requirement for parties to provide information 14 days before a transfer of a service under TUPE with the outgoing provider having a legal obligation to provide the incoming provider with specified information 14 days before a transfer of business takes effect.  Failure to follow this requirement could result in liability and claims against the Council which is a further reason for the need to obtain Cabinet approval at the earliest possible time.

Crime and Disorder Implications

13.      There are no crime and disorder implications associated with this report.

Equal Opportunities Implications (to include Welsh Language issues)

14.      There are no equal opportunity implications as a result of this report.

Corporate/Service Objectives

15.      Outcome: Current and future generations of Vale residents and visitors enjoy the built and natural environments of the Vale of Glamorgan and actively protect and maintain them.

Minimising our impact on the environment:

E1 Work with a range of partners to provide appropriate residual and recycling collection treatment and disposal services and achieve national recycling target of 58%. (2015/16)

Policy Framework and Budget

16.      This report is a matter for Executive decision.

Consultation (including Ward Member Consultation)

17.      As the proposed commitment is Vale wide no specific consultation has been carried out with Ward Members.

Relevant Scrutiny Committee

18.      Economy and Environment.

Background Papers


Contact Officer

Clifford Parish, Operational Manager Waste Management and Cleansing

Tel: 02920 673 220


Officers Consulted

Accountant - Visible Services

Head of Legal Services

Operational Manager - Committee Reports

Group Auditor


Responsible Officer:

Miles Punter - Director of Visible Services and Housing