‘Nervous’ Coventry opts for MRF contract extension

In a meeting earlier this month (1 August), the council’s cabinet was asked to approve a two-year extension of an existing contract with Biffa for its provision of a MRF, and the associated bulking and transport operation with Tom White Waste.

The contract was originally let in 2009 for an initial period of four years with options to extend for up to a maximum of a further six years. The existing agreement expires on 5th September 2017. The new extension will run from run from 6 September 2017 to 5 September 2019.

Biffa

Under the contract, Biffa is contracted to dispose of recyclable materials collected at the kerbside by in-house collection crews, including paper, metal, plastic and glass.

In context to the decision, the council says that going out to tender for the full tonnage would ‘risk’ either no responses or a ‘less favourable deal’ than that put on the table by the existing tenderer.

If this happened, the council was warned that spot gate fees would be higher. And, if the MRF was further away there would be an increase in transport costs.

However, according to the council, if it extends the existing contract for the remainder of the extension period available, it would maintain ‘terms and conditions as previously agreed’ with the contractor.

Gate fee

According to the council, the existing gate fee is ‘below market value’ and the average gate fee paid by local authorities in England. And, the council would “retain associated risks with fluctuating market commodity values.”

The council was advised that by extending the existing contract, it avoids being exposed to a “nervous market” and associated higher gate fee’s or risk of failure to secure a contract.

A spokesman for Coventry city council told letsrecycle.com: “When the original contract was awarded it allowed for a two year extension. The contract has worked well and we therefore chose to implement the extension.

“We are working alongside other local authorities within the Coventry and Warwickshire Sub region and the WMCA to consider waste requirements in the future.”

Materials under the contract are sent to Biffa’s Materials Recycling Facility in Aldridge, Walsall. The MRF has the capacity to process up to 300,000 tonnes of mixed recyclables each year. (see letsrecycle.com story)