Partnering Agreement for Environmental and Street Scene Services

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Awarded: Partnering Agreement for Environmental and St | FCC Environment (UK) Limited | WinAContract

The Council is facing a number of challenges around new waste legislation (in particular Simpler Re-cycling and EPR), the need for a new depot site and long run-in times for refuse equipment. An extension to the term of the existing Contract is the most viable option to maintain continuity of a key public service. The Council is part of the Hampshire Project Integration but the other parties are yet to finalise their needs. The existing Contract with Urbaser Ltd (now FCC Waste Management Ltd) commenced on 1 April 2011 and was due to expire in March 2026. The Contract has been provisionally extended by informal agreement and the parties now intend to formalise the extension by 2 years from April 2026 (estimated value of £8.75M). This extension was not originally provided for in the Contract. As part of the extension, the Council proposes to make further modifications as more particularly described in Section II above. In the Council's reasonable opinion, the modifications are not material and reflect the practical operation of the Contract and, in places, reduce certain costs to the Council. The total actual spend under the original Contract over the 15 year term was £41M. The increase as against the original estimated value arose due to unexpected increases in waste volumes over the term, growth in households served, market inflation, and changes to operational requirements, which were not foreseen when the initial award was made. The estimated cost of the proposed two-year extension taken together with the other modifications described above is £8.75M. The proposed extension is intended to provide sufficient time to allow the Council to finalise its requirements for a long-term solution and to undertake a competitive tendering exercise for a long-term successor in accordance with the Procurement Act 2023. The Council considers that the proposed modifications are permitted in accordance with Regulation 72(1)(e) of the Public Contracts Regulations 2015 (PCR). Under Regulation 72(8)(a), the modifications will not render the Contract materially different in character as there is no material change to the services to be provided for the extension period. The modifications are an extension of term only and minor clarifications to the service/payment made to reflect actual operation. Under Regulation 72(8)(b), the Council does not consider that the modifications introduce conditions which would have (i) allowed for the admission of other candidates, (ii) allowed for the acceptance of a tender other than that originally accepted, or (iii) attracted additional participants in the procedure. The key effects of the modifications are to extend the term of the Contract by 2 years and in the context of a 15 year contract the Council does not consider there would have been any change to the outcome of the original procurement. Under Regulation 72(8)(c), the modifications will not materially change any of the core commercial terms of the Contract, and there will be no change to the economic balance of the contract. The modifications do not extend the scope of the Contract considerably within the meaning of Regulation 72(8)(d). No material change is proposed to the nature or quantity of the works and services to be provided. Regulation 72(8)(e) of the PCR is not engaged.

Source:	Find a Tender Service (FTS)
Notice Type:	Award notice
Buyer:	Gosport Borough Council
Main Category:	Services
Procurement Method:	Award procedure without prior publication of a call for competition
Method Rationale:

Partnering Agreement for Environmental and Street Scene Services

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