The report into the processes used to award the contract to SITA UK in March 2008, was published last week (September 22). It was commissioned after councillors raised concerns about how much effort had been made by the council to involve the community group Kerbside Calderdale in delivering the contract.
The report highlights a number of unacceptable issues relating to the procurement process and the judgement and decision making of a small number of council staff
Owen Williams, chief executive, Calderdale council
Kerbside Calderdale had offered recycling collections to 26,000 households in the West Yorkshire region under the previous arrangement with Spanish firm Focsa but talks over working arrangements with SITA UK broke down (see letsrecycle.com story).
However, while the report, which was carried out by legal firm PricewaterhouseCoopers, found that the council had done enough to involve Kerbside, it also identified a number of “unacceptable issues” surrounding the procurement process used and the information given to potential bidders.
This included the introduction of a secondary assessment stage which contravened EU procurement process rules and embarking on a procurement route in the first place that did not allow negotiations between bidders and the council.
Commenting on the report, Owen Williams, chief executive of Calderdale borough council, said: “The report highlights a number of unacceptable issues relating to the procurement process and the judgement and decision making of a small number of council staff. As a result it will be necessary to consider whether there are any disciplinary issues that need to be dealt with.”
At a council committee meeting on Monday (September 28), councillors recommended that Mr Williams look into the study.
A spokesman for the council told letsrecycle.com: “A committee recommended to the council meeting sitting on October 1 that the chief executive (as head of paid service) make urgent investigations into the conduct and capability of officers and advisers identified in the report (including those about to leave the employment of the council) and take action as he considers appropriate and report back on actions taken to a meeting of cabinet in December 2009.”
Investigation
In the document, PricewaterhouseCoopers gathered information from the council, SITA UK and other prospective bidders and looked at the practices used by Calderdale council from the early stages of procurement in 2006 to the contract award two years later.
The report claimed that Calderdale's decision to introduce another assessment stage (known as a Best and Final Offer stage) to the procurement process was a “departure from the EU procurement process”, and, despite not receiving approval from the legal team, this decision was subjected to a “general lack of scrutiny and challenge from senior officers”.
And, the report also criticised the council for “causing difficulties” in the tender process by following a 'restricted procedure' procurement route which did not allow for any negotiations between bidders and also failing to consider any other procurement options before beginning the process. This was also seen as another departure from standard practice under EU procurement rules.
Mr Williams said: “After considering the report, I also have significant concerns about the advice received by the council during 2007 and the input of specialist officers, some of whom are no longer working with us. Therefore, as well as suggesting to members that we accept the recommendations of the report in full, I will also be taking further legal advice on the potential remedies available to the council.”
“I will get to the bottom of what went wrong and do everything in my power to make sure this does not happen again,” he added.
Plans
The report concludes with nine recommendations on improving the procurement process to prevent “potential breaches of procurement rules”. The council, at Monday's meeting, said that the recommendations would be turned into an Action Plan by the chief executive.
In addition, an all-party procurement cabinet working party is to be established to oversee the procurement process of contracts for services over £60,000 until cabinet determines that the working party is no longer required.
The council spokesman said it would be “inappropriate” for Calderdale to elaborate on the legal elements of the report and that they “wouldn't want to speculate on what advice might be given to others on potential remedies”.
However, he did say that the council did not envisage any implications for SITA UK as a result of the conclusions of the investigations.
Mr Williams is set to take “appropriate action” and report back on actions taken ahead of a meeting of the council cabinet in December.
Kerbside
Under the terms of the contract, the West Yorkshire council had stated that any bidder needed to “seek” to work with the community sector in delivering the waste management service but not that it needed to carry-out the work with a community partner.
The PricewaterhouseCoopers report found that the council had introduced a “number of ways” to include a voluntary group throughout the delivery of the contract and had asked all the shortlisted companies to factor in working with Kerbside Calderdale.
And, despite suggestions to the contrary, it found no evidence that the council had asked prospective bidders to remove Kerbside from their bids.
Mr Williams said: “Members commissioned this report primarily because of concerns relating to Kerbside. In particular they wanted to know whether the council could have done more to ensure that Kerbside was a part of the waste contract.”
“The report concludes that the council made significant efforts in order to bring both SITA UK and Kerbside together with a view to reaching agreement. The report also contains comments from each of the three final bidders who all said that they understood the council was keen to see social enterprise and in particular Kerbside as a part of the contract,” he added.
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