Archived decisions

Contact: Mark Robertson, ext 7105

1. Summary

1.1 The following decision is sought:

That the contract price for areas RC3, RC4 and RC5 in Contract 795 be adjusted, as detailed in the confidential Executive Summary.

2. Reason

2.1 To ensure the reliable provision of the household waste recycling centre (HWRC) service from the commencement of the contract.

2.2 The contractors have demonstrated that they made a genuine error and, following an evaluation of various options, the adjusted contract prices are still the best value offer received for the three contract areas.

2.3 The increase can be accommodated within the budgetary provision.

3. Other Options Considered and Rejected

3.1 Require the contractors to work to their original contract price: The resulting level of HWRC service provided would be unacceptable. Without the additional funding, the contractor cannot guarantee adequate resources to focus on removing extra recyclable materials from the waste bin and provide adequate customer service, therefore the County Council's recycling targets may not be achieved. The contractors would have insufficient funding margin to withstand fluctuations in recycling market prices, and could face financial difficulties affecting their ability to continue to operate if there is a significant fall in recycling prices. It was considered that there was an unacceptable level of risk to service continuity if the contractors were required to work to their original contract price.

3.2 Re-tender the contract areas: There is insufficient time before the expiry of the existing contracts, and the existing contracts cannot legally be further extended. There is also no guarantee that re-tendering will result in cost reductions.

4. Conflicts of Interest Declared by the Decision Maker or a Member or Officer consulted - None.

5. Dispensation granted by the Standards Committee - Not Applicable.

6. Reason(s) for the Matter being dealt with if Urgent

6.1 The notification of error by contractors was received on 12 December, just prior to existing contract expiry. A decision is required before 31 December 2002 to ensure continuity of the HWRC service in these contract areas.

6.2 Pursuant to Regulation 16 of the Local Government (Executive Arrangements) (Access to Information) Regulations 2000, the Chairman of the Environment Policy Review Committee, Councillor Glen, has been consulted about the need for an urgent decision and his consent has been given. The normal procedure of allowing five days notice of the proposed decision is not practicable because of the existing contracts' expiry date.

Approved by: Date:

Councillor K B Estlin