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Somerset County Council (‘Council’) and Viridor Waste Management Ltd (‘Viridor’) signed a strategic partnering agreement (‘SPA’) on 13.5.2006 (as extended on 3.4.2014) allowing for development of new waste management projects provided ...

Voluntary ex ante transparency notice

Services

Directive 2014/24/EU

Section I: Contracting authority/entity

I.1)Name and addresses
Somerset County Council
County Hall, Somerset
Taunton
TA1 4DY
United Kingdom
Contact person: David Oaten
E-mail:
NUTS code: UKK23

Internet address(es):

Main address: www.somerset.gov.uk

I.4)Type of the contracting authority
Regional or local authority
I.5)Main activity
General public services

Section II: Object

II.1)Scope of the procurement
II.1.1)Title:

Waste Treatment Contract.

II.1.2)Main CPV code
90500000
II.1.3)Type of contract
Services
II.1.4)Short description:

Somerset County Council (‘Council’) and Viridor Waste Management Ltd (‘Viridor’) signed a strategic partnering agreement (‘SPA’) on 13.5.2006 (as extended on 3.4.2014) allowing for development of new waste management projects provided that contracts are concluded before 2021. The parties entered a contract for waste management services on 14.5.2006 (‘CSC’) including landfilling residual waste, pending development of a waste treatment project.

The parties have agreed a waste treatment contract (‘NWTF2 Contract’), where Viridor will develop 2 transfer stations, and transfer residual waste to an energy from waste facility in Avonmouth. The contract follows the SPA reference terms, amended for the project specifics in accordance with the SPA mechanism. The parties are varying the CSC with effect from service commencement under the NWTF2 Contract, as residual waste currently landfilled will be treated at the Avonmouth facility.

II.1.6)Information about lots
This contract is divided into lots: no
II.1.7)Total value of the procurement (excluding VAT)
Value excluding VAT: 300 000 000.00 GBP
II.2)Description
II.2.1)Title:
II.2.2)Additional CPV code(s)
90513300
90512000
90513100
90513200
90533000
II.2.3)Place of performance
NUTS code: UK
NUTS code: UKK
II.2.4)Description of the procurement:

The NWTF2 Contract is within, and constitutes an application of, the terms of the SPA and/or, to the extent that any elements of the NWTF2 Contract may constitute modifications to the SPA, the modifications fall within Regulation 72(1)(a) PCR, as the SPA sets out a clear, precise and unequivocal mechanism (the New Project Approval Procedure in Schedule 3 and clause 8 (‘NPAP’)) describing the process for entering into contracts for new waste management projects, and this mechanism has been followed.

Please refer to Section IV for further information.

II.2.5)Award criteria
II.2.11)Information about options
Options: yes
Description of options:

The service period includes an optional extension of 5 years beyond the initial 25 year period (consistent with the terms of the SPA).

II.2.13)Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds: no
II.2.14)Additional information

The value stated in II.1.7 is an estimated figure based on the currently expected tonnage over the life of the contract (including service period of 25 years + 5 years), and may be lower or higher depending on actual tonnages.

Section IV: Procedure

IV.1)Description
IV.1.1)Type of procedure
Award of a contract without prior publication of a call for competition in the Official Journal of the European Union in the cases listed below
  • The procurement falls outside the scope of application of the directive
Explanation:

The NWTF2 Contract and associated variation of the CSC (‘Variation’) are modifications which do not require a new procurement procedure in accordance with Directive 2014/24/EU of the European Parliament and of the Council, as implemented by the Public Contracts Regulations 2015 (‘PCR’).

The NWTF2 Contract is within, and constitutes an application of, the terms of the SPA and/or, to the extent that any elements of the NWTF2 Contract may constitute modifications to the SPA, the modifications fall within Regulation 72(1)(a) PCR, as the SPA sets out a clear, precise and unequivocal mechanism (the New Project Approval Procedure in Schedule 3 and clause 8 (‘NPAP’)) describing the process for entering into contracts for new waste management projects, and this mechanism has been followed.

The overall nature of the SPA is not altered. In accordance with the NPAP, the NWTF2 contract has been agreed reflecting the reference terms which form part of the SPA and provide for construction of new facilities and a 25 year service period (‘Template Agreement’), with departures in accordance with those permitted by the SPA. Under the NWTF2 contract, Viridor will provide services for a 25 year term (with a possible 5 year extension), consistent with the term of the Template Agreement. Key departures from the Template Agreement relate to the following:

- the waste management solution under NWTF2 involves the use of new facilities, in the form of the transfer stations and the construction of a new waste treatment facility, all on Viridor sites. The facilities will not revert to the Council on expiry or termination, and the Contractor will bear construction cost and delay risk;

- the facilities will not be exclusively for Council use, although they will be given priority, and the Council will pay a price by reference to its usage; and accordingly some drafting relating to PFI/PPP has been removed, and simplified (for example the Council will not bear planning or title risk).

The CSC envisages waste being sent to NWTF1 or other NWTFs, and the Variation is of a practical and incidental nature to reflect the geographical locations of the new facilities developed under the NWTF2 Contract. As such, the Variation does not: render the CSC materially different in character; introduce conditions which would have impacted on the initial procurement procedure; change the economic balance; or extend the scope of the CSC considerably. Accordingly, the Variation is not a substantial modification to the CSC.

IV.1.3)Information about framework agreement
IV.1.8)Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: yes
IV.2)Administrative information
IV.2.1)Previous publication concerning this procedure

Section V: Award of contract/concession

V.2)Award of contract/concession
V.2.1)Date of conclusion of the contract/concession award decision:
24/02/2017
V.2.2)Information about tenders
The contract has been awarded to a group of economic operators: no
V.2.3)Name and address of the contractor/concessionaire
Viridor Waste Management Limited
Peninsula House, Rydon Lane, Devon
Exeter
EX2 7HR
United Kingdom
NUTS code: UKK43
The contractor/concessionaire will be an SME: no
V.2.4)Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession: 300 000 000.00 GBP
V.2.5)Information about subcontracting

Section VI: Complementary information

VI.3)Additional information:
VI.4)Procedures for review
VI.4.1)Review body
Not Applicable, but proceedings may be started in the High Court of England and Wales in accordance with Part 3 (Remedies) of the Public Contracts Regulations 2015
Not applicable, please see above.
United Kingdom
VI.4.2)Body responsible for mediation procedures
VI.4.3)Review procedure
Precise information on deadline(s) for review procedures:

In accordance with Part 3 (Remedies) of the Public Contracts Regulations 2015.

VI.4.4)Service from which information about the review procedure may be obtained
VI.5)Date of dispatch of this notice:
10/03/2017