Find a TenderAwarded without competition
Published 26 Jul 2022, 10:38 BST

Official UK procurement notice

Somerset County Council Waste Project

Official notice

Authority: Somerset Council (Local council)

ServicesAward procedure without prior publication of a call for competition
Awarded value£288,000,000published contract · exc. VAT
Awarded 13 May 2019no call for competition
Awarded to Syracuse Waste Limited

What is being bought

Published requirement description

Somerset County Council (“Council”) awarded a contract to Viridor Waste Management Limited (“Viridor”) in 2006 following a procurement for project management services for the delivery of the Council’s municipal waste strategy and its landfill directive obligations to divert biodegradable municipal waste from landfill (the “Contract”). The procurement was advertised in OJEU Contract Notice (2004/S 204-174980). This also encompassed the delivery of waste services and development of new waste treatment facilities - details can be found in the OJEU Contract Notice.

Viridor has subsequently changed its name to Valencia Waste Management Limited “(VWML”).

The Council is intending to enter into a novation agreement with Syracuse Waste Limited (No. 13269384) (“Syracuse”) which is a contractor successor to VWML. This will result in Syracuse replacing VWML as the party to the Contract for the remainder of the term.

CPV: Consulting services for water-supply and waste consultancy · Refuse and waste related services · Waste analysis services

The lotProcurement structure

single lot · no lot value published
Lot #1The Contract was entered into on 14 May 2006 for a duration of 191 months with an est.…

The Contract was entered into on 14 May 2006 for a duration of 191 months with an est. value of £288m (and a max. duration of 299 months) for the services referred to above. The proposed novation will not seek to extend the duration beyond the max. duration of the Contract and will expire on 31 Mar 2031.

Viridor transferred the resources, assets and staff (engaged in providing the services) into a newly created wholly-owned subsidiary, Syracuse, on 31 Jul 2021.

On 31 August 2021 Biffa Waste Services Limited acquired the entire share capital of Syracuse.

The Council intends to novate the Contract to Syracuse with the remaining term running until 31 Mar 2031. The novation will take place no earlier than the expiry of 10 days from the publication of this notice.

The £288m value in II.1.7) represents the est. value of the Contract when it was entered into on 14 May 2006 on the basis of a ~£17m value per annum across 191 months. See II.2.14) for details of est. remaining value. Additional information: The Contract has an initial term of 191 months (~16 years) with an option to extend for 9 years (which has been invoked).

The remaining term on the novated Contract will be ~108 months with an estimated remaining value of £115m on the basis of ~£12m value per annum. The per annum value is lower due to the March 2017 variation that removed residual waste treatment and disposal from the services.

Delivery: South West

Procedure terms & legal framework

From the official record · publisher note attached
Procedure method
Award procedure without prior publication of a call for competition
Legal basis
CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)
Procurement category
Services
Notice status
Awarded without competition
Procurement threshold
Unspecified in notice
Regulatory regime
Standard
Commercial structure
Stand-alone contract (no framework)
Competition type
Direct award (no call for competition)
GPA / WTO covered
Yes (GPA)
Recurring procurement
Unspecified in notice
First published
26 Jul 2022, 10:38 BST
Last source update
11 Aug 2022, 12:02 BST
Authority reference
DN624159
FTS notice number
2022/S 000-022133
Classification (CPV)
Consulting services for water-supply and waste consultancyRefuse and waste related servicesWaste analysis services
Delivery area
South West (UKK23)
Official registry OCID
ocds-h6vhtk-0355d6 Find a Tender
Why no open competition
The procurement falls outside the scope of application of the directive
Published justification

The Contract was entered into on 14 May 2006 for a duration of 191 months with an est. value of £288m (and a max. duration of 299 months) for the services referred to above. The proposed novation will not seek to extend the duration beyond the max. duration of the Contract and will expire on 31 Mar 2031.

Viridor transferred the resources, assets and staff (engaged in providing the services) into a newly created wholly-owned subsidiary, Syracuse, on 31 Jul 2021.

On 31 August 2021 Biffa Waste Services Limited acquired the entire share capital of Syracuse.

The Council intends to novate the Contract to Syracuse with the remaining term running until 31 Mar 2031. The novation will take place no earlier than the expiry of 10 days from the publication of this notice.

The £288m value in II.1.7) represents the est. value of the Contract when it was entered into on 14 May 2006 on the basis of a ~£17m value per annum across 191 months. See II.2.14) for details of est. remaining value.

Review and risk notes
Review procedure

In accordance with Chapter 6 of the Public Contracts Regulations 2015 (as amended) (Regulations 88 to 104)

Continued from Annex D1:

  • V1 – CCTV Protocol – minor amendment to reflect use of new CCTV equipment. Minor operation scale. No financial impact
  • V2 – Williton Transfer – Council’s decision to not proceed with the provision of a transfer facility. Service reduction with minimal operational impact. No additional contractual financial cost
  • V3 – Dimmer Compost Price – rationalisation of original contract banded pricing to a single price point. No operational or financial impact. Minor amendment.
  • V4 – Poole Transfer – Council decision to remove a delivery point location. Service reduction with minimal operational impact and no additional contractual financial cost
  • V5 – HWRC Opening Hours – Council decision to reduce recycling site operating hours. Saving of £165k per annum. Minimal impact to service whilst minimising budget reductions
  • V6 – Closed Landfill Management – variation to formally incorporate this service within the Core Services Contract. Continued operational service. No financial impact
  • V7 – Chard HWRC Replacement – transition of site location following the Council build out of a new facility. Minimal operational impact, signposted within the Core Services contract. Financial increase in site management fee of circa £41k per annum
  • V8 – Dimmer In Vessel Price – price adjustment following the extinction of Defra funding amounting to an increase of £17.54 per tonne in the cost of treating food waste. No operational impact
  • V9 – Inert Waste Disposal Rate - contract rate change following a revaluation of the cost of landfill remediation and aftercare. No operational impact. Minor contractual cost increase of £2.50 per tonne for the treatment of inert contractual waste
  • V10 – Recycling Centre Opening Times – Council decision to reduce recycling site operating hours. Saving of £291k per annum. Minimal impact to service whilst minimising budget reductions
  • V11 – Community Recycling Sites – Council decision to avoid site closures through making budget reductions in designating 4 of the 18 Somerset recycling sites as community recycling sites (thereby being a discretionary rather than statutory provision). Imposing a gate fee for residents to use those facilities
  • V12 – Recycling Centre Commodity Charging – removal of contractual payment terms for hardcore, tyres & gas bottles. Allowing contractor to introduce charging for these non-household items at the Recycling Centres in order for the Council to make budget reductions (circa £200k per annum)
  • V13 – Pre payments – agreement to pre pay the contractor on a quarterly in advance basis, in order to gain some financial cash flow benefit. Council decision to be able to make budget reduction of circa £100k per annum
  • V14 – CRS Closures & Opening Times – Council decision to close 2 community recycling sites, previously provided as a result of VO11 and to increase recycling site opening hours previously set by VO10. Minor operational impact and a reduction in budget savings provided by VO10 of £80k per annum
  • V15 – GDPR – updating the contract from DPA to GDPR. No operational or financial impact
  • V16 – waiver to provide a PCG in lieu of a bond. No operational impact.
  • V17 – provision of a PCG releasing financial savings. No operational impact.
  • V18 – residual waste treatment and disposal removed and captured in separate contract.
  • V19 – replacement of IVS services with AD for food waste treatment recognizing improved processing technology and budget reductions.

Continued in VI.3)

Publisher note: • V20 – execution of the contract extension clause in lieu of financial savings for the Council. Minimal operational impact and annual contract saving ranging from £300k in 2018/19 to £800k per annum from 2022/23 to the extent of the contract. Other modifications include a rebase of the minimisation bonus, revised agreement of how to share future contract savings, temporary increase in the contractor default cap and a further modification in recycling site operational hours • V21 – Anaerobic Digestion Services. Price amendment for additional tonnages to assist in budget reductions. No operational impact. • V22 variation to formally capture existing practices in to the contract. Minor operational impacts. No financial implications

Notice history

3 releases on Find a Tender
Published amendments (2 · 0 deadline changes)
WhenWhatBeforeAfterShift
—DateV.2.113 May 201914 May 2006-4747 d
—TextContact, Email and Telephone Number · I.1Contact person: Vicky Woodland E-mail: vwoodland@somerset.gov.uk Telephone: +44 1823355118Contact person: Paul Skuse E-mail: PSkuse@somerset.gov.uk Telephone: +44 7833446435

2 amendments published without a description.

Commercial outcome & contract awards

Published awards, contracts and bid statistics, not a forecast
Awards 1
Awarded value £288,000,0001 contract exc. VAT
Contracts signed 1latest 13 May 2019
Awarded toValueDateStatus
Syracuse Waste Limited£288,000,000 †—Awarded

Contracts

  • Somerset County Council Waste Project · Syracuse Waste Limited

    Signed
    13 May 2019
    Value
    £288,000,000
    Status
    active

Contracting authority & participating public bodies

Somerset County Council

Contracting authorityLocal CouncilRegional or local authorityGeneral public services County Hall, Taunton, South West, TA1 4DYContact name, email, phone

Dispute resolution & review bodies

  • High Courts of JusticeReview body London

Bidders & participating suppliers

1 commercial party on the notice

Official documents & specifications

Official links; attachments are not copied

No document links were published on the notice.