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Surrey councils seek joint £100m collection contract

Four local authorities in Surrey have decided to procure a joint waste collection and street cleansing contract in a deal valued at over £100 million, letsrecycle.com can reveal.

Elmbridge borough council, Mole Valley district council, Surrey Heath borough council and Woking borough council are teaming up to tender for a contract for an initial term of 8-10 years, with the potential to extend up to a total of 24 years. The councils are hoping that by doing so, they could save up to £10 million over the initial contract period.

Elmbridge is expected to be the first council to enter into the joint contract, in June 2017
Elmbridge is expected to be the first council to enter into the joint contract, in June 2017

Working in partnership with Surrey county council, the local authorities have drawn up a draft service specification and are due to publish a contract notice in the Official Journal of the European Union (OJEU) next month. The notice will include the names of all 11 district and borough councils in Surrey, as well as Surrey county council, meaning that further councils can join at a later stage.

Specification

The specification involves alternate weekly collections of commingled dry recycling and residual waste, in addition to weekly food waste collections – essentially the service already operated by the four waste collection authorities. However, where possible, the services will be further aligned to make it easier to work in partnership and share communications. Suggestions will also be invited from potential bidders on innovative ways to handle absorbent hygiene products, such as nappies.

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Speaking to letsrecycle.com, Eve Risbridger, project manager for the Surrey Joint Waste Collection Contract Project, said: “This is a really exciting time for the Project.  All four districts have now formally approved the draft specification and we are due to publish the OJEU notice in May. We have been visiting potential bidders who are keen to help us realise our aim of high quality waste and street cleaning services with significant cost savings from working together across boundaries. We are looking forward to hearing their innovative ideas to reduce costs.”

Ms Risbridger explained that the Surrey Joint Waste Collection Contract Project came out of the work of the Surrey Waste Partnership which she said “seeks to improve waste management in Surrey and drive efficiencies through working collaboratively.”

Negotiations

The four waste collection authorities and Surrey county council decided to procure the contract together and signed an Inter Authority Agreement in November 2013. Rushmoor borough council in neighbouring Hampshire was originally planning to join, however pulled out due to what it described as “a break-down in negotiations between Hampshire county council and their disposal contractor over collected recycling which would have been diverted to Surrey in the event of Rushmoor joining the contract”.

Commenting on whether the new joint service would be in fitting with the requirement for separate collections under the Waste Regulations, a report to Woking borough council’s executive last month explained that the Surrey Waste Partnership had assessed the compliance of each waste collection authority in Surrey against the regulations and in Woking’s case concluded that “no changes to the format of the current collection system… was required.”

It adds that while a few factors may change if moving to a joint collection contract, such as location of depots, it believed this would have little impact on the performance of the service, meaning that the assessment would remain valid, albeit subject to review.

The councils are seeking to retain an alternate weekly collection system for residual and recyclable waste, with weekly food waste collections
The councils are seeking to use an alternate weekly collection system for residual and recyclable waste, with weekly food waste collections – as currently carried out in Woking

“The Draft Service Specification has therefore been based on a commingled kerb-side alternate weekly collection (with food waste weekly) as is the current practice in Woking”, it concluded.

Contracts

At present, Biffa provides waste collection services to Woking, Surrey Heath and Mole Valley councils, while Veolia has a waste collection and street cleansing contract with Elmbridge borough council. When this expires, Elmbridge will be the first to enter into the joint contract, in June 2017. The other 3 waste collection authorities will join over a period of two years.

The contract will be procured through the competitive dialogue route and a bidder’s day will be held on May 21. Contract award is planned for Autumn 2016.

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