Decision details

Date of Decision:

23^rd June, 2023

Title:

21-270 Supply of Two-Wheeled Plastic Bins (including Replacement Parts) – Direct award

Decision Maker:

(Including Job Title)

Sam Barstow, Assistant Director, Community Safety & Street Scene

Specific Delegation:

(If any)

Group delegations and priorities:

Under the Sub Scheme of delegation – Assistant Director Sam Barstow has the delegated responsibility authorise the direct award of the plastic bins contract through call off without further competition from ESPO framework 860_22. In addition, in the absence of Paul Woodcock as the Strategic Director for Regeneration and Environment, the Assistant Directors are authorised to make decision on the Strategic Directors behalf in the context of their service areas.

Some falls under sections: 3-4-7

3.       In respect of procurement, contract        administration and best value:

·                 In accordance with Financial and Procurement Procedure Rules, matters relating to the specification for works, goods and services, the seeking of estimates, quotations and tenders, the evaluation of the same and acceptance of tenders relating to contracts for works, goods and services in accordance with approved budgets or supplementary estimates.

·                 Where a contract for support and maintenance is renewed within five years of the original contract, authority to award such a contract.

4.       In respect of in-house service providers:

·                 The authorisation of individual variations.

7.       Other functions

Any function not otherwise reserved to the full Council, the Cabinet, a committee of the Cabinet, a member of the Cabinet, a joint committee discharging executive functions or another local authority, relevant to the Assistant Director’s portfolio.

Bidding for external funding and grant aid for both revenue and capital schemes, and their subsequent implementation.

Brief Description of Decision:

In Rotherham, household waste is collected in four waste streams: glass, cans and plastic recycling, paper and card recycling, residual waste and a garden waste service by subscription.  Waste is collected from the kerbside in two-wheeled plastic bins of different colours, each corresponding to a different waste stream.  Households may request new, additional and replacement bins from the Council, subject to their eligibility and payment of relevant charges.  Where a damaged bin is returned, the Council may repair it using replacement parts.

Two-wheeled plastic bins are also used to collect waste from commercial waste customers, according to the bin capacities specified in their contracts with the Council.  It is the Council’s ambition to increase its share of the local market in commercial waste, especially amongst small and medium sized enterprises which are likely to need smaller capacity collections i.e., two-wheeled plastic bins.

These services help to ensure the Council meets its statutory obligations under the Household Waste Recycling Act (2003) and Environmental Protection Act (1990): to arrange for the collection of household waste and the separate collection of at least two types of waste which may be composted or recycled; and if requested, to arrange for the collection of any commercial waste from premises inside its local authority area.

It is the decision that the Assistant Director of Community Safety and Street Scene should award a contract for the supply of two-wheeled plastic bins (including replacement parts) to IPL Plastics (UK) Ltd, through call off without further competition from ESPO framework 860_22.

The value of the contract is £1,473,000.

Reasons for the Decision:

A previous contract was awarded to ONE51 ES Plastics (UK) Ltd, trading as MGB Plastics, following a further competition exercise under YPO framework 551 for the supply of plastic wheeled bins.  This contract expired on 1 July 2022, with no further extension options available after a 4-year term.

Though MGB Plastics has since joined IPL, a multi-national plc, as IPL Plastics (UK) Ltd, it retains a local manufacturing base at the Barbot Hall Industrial Estate in Parkgate, Rotherham.  MGB Plastics successfully delivered the Council’s previous contract, which included the roll-out of pink-lidded bins for residual waste to all households in the Borough and the provision of brown bins, as a garden waste subscription service was introduced.

Since the Council’s previous contract expired, there has been spot purchase of wheeled bins from MGB Plastics to meet the need for new, additional and replacement bins.  If this continues, the Council will breach the Public Contracts Regulations (2015) as the total off-contract spend will exceed the relevant threshold for procurement of goods.

To abide by The Public Contracts Regulations (2015) while continuing to deliver its existing services, the Council must procure a new contract for the supply of two-wheeled plastic bins.

Several framework contracts are available, including YPO framework 1040 and ESPO framework 860_22.  Given the timescale for implementation required to meet service needs, call off without further competition from ESPO framework 860_22 has been identified as the preferred route to market.

Since the preferred route to market is by call off without further competition from ESPO framework 860_22, there will be no assessment of tenderers against evaluation criteria, following a competitive tender.

However, to be admitted to ESPO framework 860_22 suppliers have already been required to demonstrate their adherence to minimum standards, as well as their competitiveness on price (60%) and quality (40%).

To identify a preferred supplier under ESPO framework 860_22, the service has considered the following:

·        Price

·        Social Value (environmental) – distance travelled in distribution

·        Social Value (environmental) – relative amount of virgin and recycled plastic used in manufacture

·        Social Value (economic) –benefit to the local economy in jobs and business growth

As service need is very time-sensitive in the proposed procurement, mobilisation period has also been considered in the identification of a preferred supplier.  In connection with this, prices offered were to be no greater than those paid under the Council’s previous contract (uprated by CPI inflation), so the annual value of the proposed contract would not exceed existing approved budgets and the procurement could proceed within the authorisations outlined above.

Details of alternative options considered and rejected:

Several framework contracts are available, including YPO framework 1040 and ESPO framework 860_22.  Given the timescale for implementation required to meet service needs, call off without further competition from ESPO framework 860_22 has been identified as the preferred route to market. 

Conflicts of interest declared by any Executive Member consulted by the decision maker which relates to the decision:

It is confirmed that there are no known conflicts of interest (personal or financial) with any of the individuals involved in the development of this business case and/or the preferred supplier, IPL Plastics (UK) Ltd.

Dispensations Granted:

(If any)

N/A

Reports or parts of reports considered

21-270 Supply of Two-Wheeled Plastic Bins (including Replacement Parts) – To be attached