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Procurement of Waste and Recycling Services in the UK – Lessons for New ZealandWasteMINZ conferenceChristchurch14 – 16 October 2009
Presented by: Duncan Wilson
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Introduction
−The UK− Service changes− Key Drivers− Responses− Processes and forms of contract
−New Zealand:− Key drivers− Why we contract out services− Adapting to changing times− Lessons
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What is Happening in the UK
Changing drivers in the waste sector −National waste minimisation targets devolved
to councils−Landfill Tax−LATS – divert biodegradable waste−‘Gershon’ efficiency savings targets−Changing public expectations
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Simple contracts - Rubbish
collected, taken to landfill
Procuring Waste & Recycling Services
Kerbside recycling - kerbside sort? comingled?compacted, or not?
Inorganics collect? charge?
frequency? try to recycle, or don’t bother?
Organics collect? food
waste with green waste –
or separately?
Facilities MRF... MBT…
IVC… public investment –
or rely on the private sector?
Rubbish – Charged? Bins?,
Bags? Fortnightly?
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What is Happening in the UK
Responses from councils−Integrated contracts−Procurement of infrastructure (PFI)−Joint working−Longer contract periods−Need to work hard to attract bidders−Basically bigger and more complicated!
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Some UK examples
−Traditional/Open Tender Processes− design services− write specifications− tender
−Restricted Tender Processes− selection before tender stage
−Negotiated Procedure− specifications agreed between contracting
parties
−Competitive Dialogue Procedure− specifications developed in dialogue− MEAT tender chosen
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Forms of Contract
−Public/Private Partnership Contracts− long term contracts− regular reviews of specifications− choosing a partner rather than priced
specifications
−Private Finance Initiatives− BOOT and DBO similar− able to access funding/investment
−Cost-plus− open-book accounting with profit added− very flexible in specifications− CCO
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Lessons for New Zealand
Waste Management landscape changing−Waste Minimisation Act−National Waste Strategy Targets−Emissions Trading Scheme−National Environmental Standards−Budgets under pressure−Variety and quality of materials collected−Flexibility in contracts – transfer of
resources and changing processing capacity
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Lessons for New Zealand
Procurement should be changing−Integrated contracts−Infrastructure included−Longer contract terms−Flexibility−Tied to objectives – council and government−Need to align interests
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Summary
Beyond kerbside rubbish collection contracts
−Long term, partnering style contracts−Specify outcomes, not services−Procure services less often−Risk – but not necessarily financial risk
A different approach = Better results for waste management and
financial efficiency
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Contact Details
Duncan WilsonLisa Eve
Eunomia Research & [email protected]
[email protected]: +64 9 376 1909
www.eunomia-consulting.co.nz