DSD, which began its operations in 1991, arranges the collection and recycling of lightweight packaging (aluminium, plastic, composites and tinplate) and glass under European packaging legislation.
The not-for-profit company put its recycling and collection contracts out for tender for the first time this year after the European Commission demanded it reassign the service contracts with shorter terms. But now DSD has been forced to re-open the tender process for many of the contracts to try and get cheaper bids.
Moniker Gabler, communications manager for DSD, told letsrecycle.com: “Just 25% of the companies that participated in the tendering process will get a contract because they gave prices we could afford. But in 70% there will be a new tender process starting next week, because the companies were too expensive. The reason for a tender is to get lower prices but we didn't in 70% of submissions.”
Re-tendered
The accepted contracts are due to start on January 1, 2004 and run until December 31, 2006, but the contracts that are being re-tendered will now start a year later in January 1, 2005.
Ms Gabler said: “For next year, it is possible that existing contracts will stay in place. But DSD are able to contract with anybody else who offers a better price even just for next year.”
One industry view reacting to the news of the tender process came from Cleanaway's German operation. Stefan Dietrich, a spokesman for Cleanaway in Germany, told letsrecycle.com that recycling companies are expecting to suffer from DSD's tendering process. He said: “The DSD tries to lower prices wherever they can. But because a lot of money has been invested into facilities, you want to get your money back.”
He added that as one of the larger recycling companies, Cleanaway was in a better position financially to tender for DSD contracts than the smaller companies.
Investigation
DSD has denied actually taking part in the searches of premises belonging to firms who submitted tenders.
The German Federal Cartel Bureau raided 120 offices of German recycling firms earlier this month to investigate possible anti-competitive behaviour regarding the tendering for the DSD contracts worth a total of 2.5 billion (see letsrecycle.com story).
Ms Gabler explained: “In a lot of regions we have just one partner that has given us a bid. We had to get into contact with the Cartel Bureau and we gave all the information to the Bureau. They got the impression that the different companies might have talked to each other about giving the tenders and they decided go to 120 companies to search them. But some people in the companies think we were involved in the searches when we weren't.”
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