Bucks considers U-turn over Covanta appointment

The council's cabinet member for environment and planning will decide on Wednesday (March 10) whether to take the procurement process for the 25-year contract back a step by re-opening competitive talks with Covanta and the other firm to feature on the final shortlist for the deal, Waste Recycling Group.

Covanta's was chosen last year as preferred bidder with a proposal to treat 210,000 tonnes a year of Buckinghamshire's residual waste at a 390,000 tonne-a-year capacity energy-from-waste facility which the US-owned company plans to build at Rookery Pit, in neighbouring Bedfordshire (see letsrecycle.com story).

But, the council has now revealed that, during discussions with the company after it was named as preferred bidder, its waste management team was made aware by Covanta of an issue relating to the site, prompting the team to recommend that the procurement process be taken back a step.

“The issue is associated with legal constraints on their site, which impacts on the commercial aspects of their bid,” it said in a statement.

“This has affected the Council's evaluation of final tenders as the matter was not taken into account at the previous evaluation phase,” it added.

The council said that it could not divulge the precise nature of the issue due to Covanta's commercial confidentiality.

However, the company's plans to take waste from Buckinghamshire and treat it in a neighbouring county have proved controversial, with councillors from Central Bedfordshire council – which covers the Rookery Pit site – criticising Buckinghamshire's decision to award preferred bidder status to Covanta without consulting them first (see letsrecycle.com story).

Decision

If the cabinet votes to reopen talks with Covanta and WRG, then the two companies will be asked to submit further final tenders in September, with a view to preferred bidder status being awarded by the end of the year.

Commenting on the officers' recommendation, councillor Martin Tett, cabinet member for environment and planning at the council, said: “Officers have put forward the recommendations as a result of a commercial matter which had arisen during the final phase of the project.

“In order to discuss this matter further, the rules of the competitive procurement process would mean that the council has to re-open competitive discussions with Covanta and also WRG, who were unsuccessful previously.”

Cllr Tett explained that if the council fail to take into account issues such as this then it could face a legal challenge from the bidders. He added: “This which would involve substantial delay and cost to the council. It could also potentially result in the case being referred to the European Court of Justice.”

Plans

The county council explained that it had not opted to abandon the entire plan as the response would be “disproportionate” to the issue and that it would also incur “significant cost” to the council. However, the project timetable is now expected to be delayed by up to a year.

Covanta Energy told letsrecycle.com that it was unable to comment on the proposal at this stage in the tendering process.

A spokesman for WRG said: “WRG notes that officers of Buckinghamshire county council have recommended that discussions should be re-opened for its energy-from-waste procurement project. WRG had proposed a scheme at its Calvert landfill site.”

The spokesman added that the company will await the decision by the council before making any further comment.