Bids have now been received from Biffa and Onyx for the contract, which is set to be worth some 600 million over 25 years. These two companies will now move towards a best and final offer stage.
” We are pleased with these bids, we have two of the bigger players in the market “
– Frank Mulgrew, Shropshire Waste Partnership
But, SITA UK and the Enterprise-Entech consortium, which were also in running for the contract, have withdrawn their offers.
The contract, which includes a 35.8 million PFI award from the Department of Environment Food and Rural Affairs, will cover Shropshire county council, the districts of Bridgenorth, North Shropshire and South Shropshire and Oswestry borough council.
Frank Mulgrew, executive officer for the partnership, said: “We are pleased with these bids, we have two of the bigger players in the market. There is a lot of pressure on the waste contracting industry with companies paying anywhere up to a million pound to bid for a PFI contract, so to receive these two bids is very pleasing.”
Evaluation
The Partnership has now set aside several months to evaluate the bids and Biffa and Onyx will be giving presentations on their proposals over the next two weeks.
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Shropshire will be making a decision on whether to move onto the best and final offer stage by some point in October, although Mr Mulgrew said that the Partnership may move straight to the preferred bidder stage.
If the best and final offer stage is needed it is likely that the preferred bidder stage would slip into 2006. The contract is expected to be signed by September 2006 with work beginning in early 2007.
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