The UKs first waste management services framework is open for business and councils are already signing up to procure services, according to Improvement and Efficiency South East (iESE).
However a spokeswoman for iESE told letsrecycle.com yesterday (June 7) that no formal launch has been made as the organisation is still concluding the contract arrangements with the successful suppliers.
In May 2012 iESE revealed that more than half of the 24 companies invited to tender for the framework had opted not to follow through (see letsrecycle.com story).
Some companies in the waste and recycling industry including Biffa, Kier and Serco had already announced that they did not apply (see letsrecycle.com story).
The delay in announcing details of the suppliers on the framework, which was expected last month, has led some observers of the waste and recycling industry to raise concerns over the iESE project.
The delays are thought to have been partly caused by contractors assessing closely the terms and conditions involvedand especially the terms of payment for using the iESE framework. Contractors have to pay an annual maximum fee of 10,000 for using iESE as well as a percentage rebate from the annual throughput which is paid over the four years of the framework, currently set at 0.5%. If a supplier is on one lot only, they are eligible for a 40% discount on the annual fee. The payment arrangements are subject to an annual review “to ensure any charges remain fair and reasonable.”
Delay
Cllr Paul Bettison, chairman of iESE and leader at Bracknell Forest council, explained that iESE was waiting for the right setting to make the announcement. He told letsrecycle.com: I think it is just a question of choosing an appropriate setting to make the announcement thats the only reason why there is any delay.
He explained that while the process was shorter than a normal procurement, councils still had to prepare their part of the process before moving to the stage where contractors became involved.
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Cllr Bettison added: The framework contract is of great importance because councils spend an absolute fortune on this service. It is such an important and helpful service to residents, that if they dont get that right the public will have a pretty bad regard for them. Its an area where across the country councils spend a lot of money and as you know we have 141 local authorities able to procure together which makes it the largest procurement framework of any type in this country.
Savings
The waste services framework was unveiled in May 2011 when 141 councils in London, the South East, South West and the West Midlands signed up to procure services which iESE said could save them over 85 million collectively (see letsrecycle.com story).
The councils listed on the framework are under no obligation to do use it to procure waste and recycling services as some in the industry have expressed doubt over whether many of them will bother.
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