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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 Zealand. WasteMINZ conference Christchurch 14 – 16 October 2009 Presented by: Duncan Wilson. Introduction. The UK Service changes Key Drivers Responses Processes and forms of contract New Zealand: Key drivers

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

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  1. Procurement of Waste and Recycling Services in the UK – Lessons for New Zealand WasteMINZ conference Christchurch 14 – 16 October 2009 Presented by: Duncan Wilson

  2. 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

  3. 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

  4. Procuring Waste & Recycling Services • Kerbside recycling - kerbside sort? comingled? compacted, or not? • Organics collect? food waste with green waste – or separately? • Simple contracts - Rubbish collected, taken to landfill • Rubbish – Charged? Bins?, Bags? Fortnightly? • Inorganics collect? charge? frequency? try to recycle, or don’t bother? • Facilities MRF... MBT… IVC… public investment – or rely on the private sector?

  5. 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!

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. Contact Details Duncan Wilson Lisa Eve Eunomia Research & Consulting duncan@eunomia-consulting.co.nz  lisa@eunomia-consulting.co.nz Office: +64 9 376 1909 www.eunomia-consulting.co.nz

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