URL: https://democracy.kent.gov.uk/ieDecisionDetails.aspx?ID=3005

Decision Maker: Cabinet Member for Environment

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: Proposed Decision:   1.    APPROVE the procurement and contract award of an organic waste contract for an initial 5 years, (plus an extension of up to 5 years) commencing 1st April 2026; 2.    DELEGATE authority to the Director of Environment and Circular Economy to take relevant actions to facilitate the required procurement activity; 3.    DELEGATE authority to the Director of Environment and Circular Economy in consultation with the Cabinet Member for Environment, to take relevant actions, including but not limited to, awarding, finalising the terms of and entering into the relevant contracts or other legal agreements, as necessary, to implement the decision; and 4.    DELEGATE authority to the  Director of Environment and Circular Economy in consultation with the Cabinet Member for Environment to award extensions of the contract in accordance with the relevant clauses within the contract.   Reason for the decision KCC currently has in place contractual arrangements that are due to expire 31st March 2026, and therefore is seeking new contractual arrangements from 1st April 2026, for the processing of Organic Waste currently collected by the Waste Collection Authorities and at the Household Waste Recycling Centres (HWRCs) across Kent.   Background -      As the Waste Disposal Authority, KCC has a statutory responsibility for the processing of organic waste collected by Borough and District Councils (known as the Waste Collection Authorities) from households at the kerbside, and from deposits at HWRCs across the County by residents. -      The commission will be presented in three lots and procured via a competitive procurement process under the Procurement Act 2023 and will include the provision for managing circa 95,000 tonnes per annum. -      The contract will be for an initial period of 5 years, with an option to extend up to a further 5 years. This timeframe is intended to ensure a reliable and consistent statutory service during the Local Government Reform transition period. -      The extension will be considered based on performance and value for money, in accordance with "Securing Kent’s Future" and will be assessed through a benchmarking exercise conducted 18 months before the extension clause is activated. -      The procurement will be compliant with the Procurement Act 2024. -      The contract will ensure that providers adhere to environmental legislation and permitting requirements and best practice is delivered   Options (other options considered but discarded) -      Option 1 - Do nothing – the current arrangements will cease and KCC will be unable to accept the waste - this is not an option due to KCC’s obligation to receive this material under waste legislation and dispose of it as per the Environmental Protection Act 1990. -      Option 2 - Continue to accept the waste but utilise alternative disposal options by using landfill or incineration - This is not an option as there is a desire and obligation to move material up the waste hierarchy where possible, and to meet recycling and landfill diversion targets. Furthermore, to send this material to incineration would be extremely costly against a treatment option. -      Option 3 - Extend for a further period - This is not favoured, as all organic contracts have been extended previously to align to one end date giving the opportunity to produce economies of scale when a full county re-procurement is undertaken. Three contracts do not have an available compliant extension option. -      Option 4 – Commence a full procurement exercise (recommended option) before the end of the contracts – This is the preferred option and provides sufficient time to undertake a full commissioning activity before 1st April 2026, and to secure a provider/s who can treat and utilise the waste material meeting the circular economy desired outcomes.   How the proposed decision supports the Framing Kent's Future - Our Council Strategy 2022-2026 ·         Priority 3: Environmental step change: Continue to work with our commissioning partners to create the infrastructure and jobs that enable us to reprocess waste materials and produce energy within the county, in order to maintain a closed loop local economy.   How the proposed decision supports Securing Kent’s Future 2022 -2026: Securing Kents Future - Budget Recovery Strategy.pdf ·         Objective 2: Delivering savings from identified opportunity areas to set a sustainable 2026/27 budget and MTFP: Contract Review and delivery of best value.  

Content: Proposed Decision:   1.    APPROVE the procurement and contract award of an organic waste contract for an initial 5 years, (plus an extension of up to 5 years) commencing 1st April 2026; 2.    DELEGATE authority to the Director of Environment and Circular Economy to take relevant actions to facilitate the required procurement activity; 3.    DELEGATE authority to the Director of Environment and Circular Economy in consultation with the Cabinet Member for Environment, to take relevant actions, including but not limited to, awarding, finalising the terms of and entering into the relevant contracts or other legal agreements, as necessary, to implement the decision; and 4.    DELEGATE authority to the  Director of Environment and Circular Economy in consultation with the Cabinet Member for Environment to award extensions of the contract in accordance with the relevant clauses within the contract.   Reason for the decision KCC currently has in place contractual arrangements that are due to expire 31st March 2026, and therefore is seeking new contractual arrangements from 1st April 2026, for the processing of Organic Waste currently collected by the Waste Collection Authorities and at the Household Waste Recycling Centres (HWRCs) across Kent.   Background -      As the Waste Disposal Authority, KCC has a statutory responsibility for the processing of organic waste collected by Borough and District Councils (known as the Waste Collection Authorities) from households at the kerbside, and from deposits at HWRCs across the County by residents. -      The commission will be presented in three lots and procured via a competitive procurement process under the Procurement Act 2023 and will include the provision for managing circa 95,000 tonnes per annum. -      The contract will be for an initial period of 5 years, with an option to extend up to a further 5 years. This timeframe is intended to ensure a reliable and consistent statutory service during the Local Government Reform transition period. -      The extension will be considered based on performance and value for money, in accordance with "Securing Kent’s Future" and will be assessed through a benchmarking exercise conducted 18 months before the extension clause is activated. -      The procurement will be compliant with the Procurement Act 2024. -      The contract will ensure that providers adhere to environmental legislation and permitting requirements and best practice is delivered   Options (other options considered but discarded) -      Option 1 - Do nothing – the current arrangements will cease and KCC will be unable to accept the waste - this is not an option due to KCC’s obligation to receive this material under waste legislation and dispose of it as per the Environmental Protection Act 1990. -      Option 2 - Continue to accept the waste but utilise alternative disposal options by using landfill or incineration - This is not an option as there is a desire and obligation to move material up the waste hierarchy where possible, and to meet recycling and landfill diversion targets. Furthermore, to send this material to incineration would be extremely costly against a treatment option. -      Option 3 - Extend for a further period - This is not favoured, as all organic contracts have been extended previously to align to one end date giving the opportunity to produce economies of scale when a full county re-procurement is undertaken. Three contracts do not have an available compliant extension option. -      Option 4 – Commence a full procurement exercise (recommended option) before the end of the contracts – This is the preferred option and provides sufficient time to undertake a full commissioning activity before 1st April 2026, and to secure a provider/s who can treat and utilise the waste material meeting the circular economy desired outcomes.   How the proposed decision supports the Framing Kent's Future - Our Council Strategy 2022-2026 ·         Priority 3: Environmental step change: Continue to work with our commissioning partners to create the infrastructure and jobs that enable us to reprocess waste materials and produce energy within the county, in order to maintain a closed loop local economy.   How the proposed decision supports Securing Kent’s Future 2022 -2026: Securing Kents Future - Budget Recovery Strategy.pdf ·         Objective 2: Delivering savings from identified opportunity areas to set a sustainable 2026/27 budget and MTFP: Contract Review and delivery of best value.   As Cabinet Member for (the Kent) Environment I agree to:   (i)             APPROVE the procurement and contract award of an organic waste contract for an initial 5 years, (plus an extension of up to 5 years) commencing 1st April 2026;    (ii)            DELEGATE authority to the Director of Environment and Circular Economy to take relevant actions to facilitate the required procurement activity;   (iii)          DELEGATE authority to the Director of Environment and Circular Economy in consultation with the Cabinet Member for Environment, to take relevant actions, including but not limited to, awarding, finalising the terms of and entering into the relevant contracts or other legal agreements, as necessary, to implement the decision; and   (iv)          DELEGATE authority to the Director of Environment and Circular Economy in consultation with the Cabinet Member for Environment to award extensions of the contract in accordance with the relevant clauses within the contract; as shown at Appendix A.

Date of Decision: August 11, 2025