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Agenda Item No.

 

THE VALE OF GLAMORGAN COUNCIL

 

SCRUTINY COMMITTEE (ECONOMY AND ENVIRONMENT):  3 SEPTEMBER 2013

 

REFERENCE FROM CABINET: 29 JULY 2013

 

C1448       CARDIFF ORGANIC WASTE PARTNERSHIP – KITCHEN FOOD AND GREEN GARDEN WASTE TREATMENT PROCUREMENT – (EVS) (SCRUTINY – ECONOMY AND ENVIRONMENT) –

 

Members were apprised of the outcomes of a highly competitive and robustly dialogued and negotiated procurement process, at the Invitation to Submit Detailed Solutions (ISDS) stage.

 

Following the agreement to work with Cardiff City Council to jointly procure future food and green waste treatment capacity in line with the Welsh Government's (WG) preferred strategy for treatment of organic waste, officers of the Council's Waste Management and Cleansing Division (WM&C) had worked on the ISDS stage of the project.  They had also been part of the procurement and dialogue team and Project Management Board, ensuring that the Council's interests were considered during all aspects of the procurement.

 

Following the initial market testing and the Invitation to Submit Outline Submissions (ISOS) the four bidders taken forward who submitted detailed solutions at the subsequent ISDS Stage were all based on Anaerobic Digestion (AD) technologies for food waste, and Open Windrow Composting (OWC) technologies for garden green waste.

 

The ISDS dialogue stage comprised the following 4 bidders:

·        Agrivert Limited

·        Keldar Biogen Renewables Cymru

·        G E Neco Wessex Water

·        Shanks Waste Management Limited

 

The treatment solutions were to be at the following locations:

 

ISOS Bidder

Kitchen Food Treatment Facility

Green Garden Waste Facility

Agrivert Limited

 

Rover Way Cardiff (Neil's Soils),

Cardiff City Council's existing Open Windrow Compositing (OWC) facility at their Lamby Way landfill facility. 

Keldar Biogen Renewables Cymru

 

Dwr Cymru Welsh Water's Rover Way Sewage Treatment Plant site

Cardiff City Council's existing Open Windrow Compositing (OWC) facility at their Lamby Way landfill facility. 

G E Neco Wessex Water

 

Existing AD facility  Avonmouth

Cardiff City Council's existing Open Windrow Compositing (OWC) facility at their Lamby Way landfill facility. 

Shanks Waste Management Limited

New Inn, Pontypool

Cowbridge Compost  Ltd Site in Cowbridge

 

The ISDS Bids were evaluated in accordance with the agreed and published evaluation methodology and the Public Contract regulations. The final two bidders would be selected by the evaluation process and agreed by the Project Board as recommended Final Tenders. The evaluation criteria for the procurement was attached at Appendix 1 and had been used by the Procurement Project Team to ensure that the selection of the bidders through the process resulted in the most sustainable and best value solutions being taken forward to the latter parts of the procurement process.

 

The Council had already signed up to an IAA for carrying out the procurement stages;  but would need to consider, subject to a further report, a  second IAA to cover the contract management, partner liabilities and payment mechanism following the completion of the procurement process. 

 

The 'Next Steps' in taking the procurement forward to financial close are as follows:

·        Complete (ISDS) Detailed evaluation stage process and derive Select List for Final Tenders. 2 No (ISFT stage) – July 2013;

·        In parallel, complete Final Tender (ISFT) documentation suite, reflecting the project’s commercial positions and continuing objectives of the project going forward. 

·        Develop communications plan in detail for the next stage, covering media and stakeholder engagement plans.

 

Key Target Milestones of the procurement (depending on progress made by all parties in the final stage of negotiation and dialogue).

·        Commence 'Call for Final Tenders' Stage – September 2013;

·        Preferred Bidder Announcement - summer 2014;

·        Financial Close – Autumn 2014;

·        Planned Service Commencement January 2016;

·        Project Expiry (15 years) January 2031.

 

The Council had already signed up to an OBC and IAA for this procurement, which provided a tool for the Partnership (and its stakeholders) to analyse the outcome of the procurement process and answer a number of questions about the proposed solution, including:

 

·        Did it address all of the Partnership’s requirements?

·        Did it represent good value for money?

·        Was it affordable?

·        Was it in line with National Waste Policy?

·        Was it a good fit with the Partners’ wider waste management strategies?

·        Was it environmentally sustainable?

·        Was the risk-profile appropriate?

·        Taking all the above into consideration, was it the right solution for the Partnership?

 

Whilst it would be necessary to re-affirm the Final Business Case when the Preferred Bidder had been identified (following the completion of the ISFT) both these items would be matters to be determined within a subsequent report to Cabinet in 2014, which would also address the questions raised above.

 

This was a matter for Executive decision.

 

RESOLVED – 

 

(1)       T H A T the progression of this procurement to the Invitation to Submit Final Tender Stage (ISFT) be approved.

 

(2)       T H A T the report be referred to the Scrutiny Committee (Economy and Environment) for information.

 

(3)       T H A T further reports be provided to Cabinet as necessary on this matter during 2014.

 

Reasons for decisions

 

(1)       To permit the successful bidders from the ISDS Stage to be invited to submit Final Tenders and for the procurement to then be taken to the Preferred Bidder Stage.

 

(2)       To apprise Scrutiny Committee (Economy and Environment).

 

(3)       To obtain the necessary authority to progress through the latter stages of the procurement process.

 

 

Attached as Appendix – Report to Cabinet – 29 JULY 2011