Procurement of Waste and Recycling Services in the UK – Lessons for New Zealand

Procurement of Waste and Recycling Services in the UK – Lessons for New ZealandWasteMINZ conferenceChristchurch14 – 16 October 2009

Presented by: Duncan Wilson

Introduction

−The UK− Service changes− Key Drivers− Responses− Processes and forms of contract

−New Zealand:− Key drivers− Why we contract out services− Adapting to changing times− Lessons

What is Happening in the UK

Changing drivers in the waste sector −National waste minimisation targets devolved

to councils−Landfill Tax−LATS – divert biodegradable waste−‘Gershon’ efficiency savings targets−Changing public expectations

Simple contracts - Rubbish

collected, taken to landfill

Procuring Waste & Recycling Services

Kerbside recycling - kerbside sort? comingled?compacted, or not?

Inorganics collect? charge?

frequency? try to recycle, or don’t bother?

Organics collect? food

waste with green waste –

or separately?

Facilities MRF... MBT…

IVC… public investment –

or rely on the private sector?

Rubbish – Charged? Bins?,

Bags? Fortnightly?

What is Happening in the UK

Responses from councils−Integrated contracts−Procurement of infrastructure (PFI)−Joint working−Longer contract periods−Need to work hard to attract bidders−Basically bigger and more complicated!

Some UK examples

−Traditional/Open Tender Processes− design services− write specifications− tender

−Restricted Tender Processes− selection before tender stage

−Negotiated Procedure− specifications agreed between contracting

parties

−Competitive Dialogue Procedure− specifications developed in dialogue− MEAT tender chosen

Forms of Contract

−Public/Private Partnership Contracts− long term contracts− regular reviews of specifications− choosing a partner rather than priced

specifications

−Private Finance Initiatives− BOOT and DBO similar− able to access funding/investment

−Cost-plus− open-book accounting with profit added− very flexible in specifications− CCO

Lessons for New Zealand

Waste Management landscape changing−Waste Minimisation Act−National Waste Strategy Targets−Emissions Trading Scheme−National Environmental Standards−Budgets under pressure−Variety and quality of materials collected−Flexibility in contracts – transfer of

resources and changing processing capacity

Lessons for New Zealand

Procurement should be changing−Integrated contracts−Infrastructure included−Longer contract terms−Flexibility−Tied to objectives – council and government−Need to align interests

Summary

Beyond kerbside rubbish collection contracts

−Long term, partnering style contracts−Specify outcomes, not services−Procure services less often−Risk – but not necessarily financial risk

A different approach = Better results for waste management and

financial efficiency

Contact Details

Duncan WilsonLisa Eve

Eunomia Research & Consultingduncan@eunomia-consulting.co.nz 

lisa@eunomia-consulting.co.nzOffice: +64 9 376 1909

www.eunomia-consulting.co.nz