The OFT is working with the Office of Government Commerce and Defra on the project, which aims to improve the way local authorities let contracts for waste services including collection work, recycling, disposal services, civic amenity site management and street cleaning.
The project should help local authorities to “make the most of competition when procuring waste management services”.
Guidance
Following similar work that has been carried out in the procurement of construction contracts, the work should ultimately lead to new guidance helping councils tackle possible competition issues and “avoid being the victim of bid-rigging or price-fixing cartels”.
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OFT concerns in the potential for competition problems in the procurement of council waste management contracts came to light last autumn in a report from consultants dot-econ(see letsrecycle.com story).
Issues in the report included the apparent advantages to incumbent waste contractors and Direct Service Organisations, as well as the fact that some contracts are so large only very large waste companies have any chance of success.
The OFT said its guidance should be ready for publication in autumn 2005.
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