Procurement

The Partnership comprises of Cardiff Council, Caerphilly County Borough Council, Monmouthshire County Council, Newport City Council and The Vale of Glamorgan Council and is one of a number of procurement partnerships that are participating in a programme of projects for the treatment of residual and food waste supported by the Welsh Assembly Government.

The procurement is being conducted in accordance with the Competitive Dialogue Procedure under the EU Public Sector Procurement Directive (2004/18/EC), implemented into UK law via the Public Contracts Regulations SI 2006/5 with effect from 31 January 2006.

The Guiding Principles outlined in the Public Contract Regulations SI 2006/5 are:

Confidentiality
Non-discrimination
Equality of treatment of all bidders; and
Transparency

Detailed information in relation to the Competitive Dialogue Procedure can be accessed via www.gov.uk:
www.gov.uk/government/uploads/system/uploads/attachment_data/file/225317/02_competitive_dialogue_procedure.pdf

The following summary highlights the key milestones of the Procurement undertaken to date looking forward to the contract award.

Initial Market Testing: November 2006.

An Official Journal of the European Union (OJEU) Prior Information Notice (PIN) was issued in 2006. A PIN is a voluntary notice aimed at giving potential organisations advance notice of the Partnerships’ intention for this project. Twenty-Two (22) organisations responded, indicating a strong market interest for such a project. The initial technical solutions ranged from:

Anaerobic Digestion
Autoclave
Mechanical Biological Treatment to Energy from Waste (EFW)
Energy from Waste (EFW) as a standalone process
Biogas production
Gasification
Pyrolysis

Initial Business Case Prepared: July 2007.

Reports were initially submitted to the four (4) Councils, with the exception of Caerphilly CBC, which at that time, had not joined the Partnership.

Outline Business Case (OBC) Prepared and Approved by The Welsh Assembly Government (WAG): January 2009.

A reference technology was stated within the OBC to ensure that a single option had the potential to provide an affordable and deliverable solution for each patners’ Waste Strategy. The referencing of a technology does not predetermine the output of the Procurement process. The reference technology was selected using the evaluation criteria in accordance with the WAG’s National Evaluation Framework.

Five Full Councils (Partnership) Approve the Outline Business Case: June/July 2009.

Key consultation work undertaken on the evaluation criteria and weightings.

Stakeholder Event on 7 September 2009 – Local Councillors, Assembly Members, Environmental Interest Groups and Statutory Bodies were invited.
Questionnaire to all Council Members, MP’s and AM’s surrounding potential known sites and a random postal survey to 15,000 residents across the five authority areas, seeking views on elements of the evaluation criteria that were not set by law or a decision made by the Councils, this included technical, environment and social responsibility to help to develop the marking scheme (Evaluation Criteria)
Scrutiny Review on Approach to Evaluation Workshop.

Notice issued in the Official Journal of the European Union (OJEU): November 2009.

The detailed Contract Notice provided in depth information in relation to the project and stated: ‘The partnership does not intend to specify a particular technology solution and will therefore consider any technology solution that meets the Partnership’s requirements.’

Pre Qualification Questionnaire Available (PQQ): November 2009.

A pre-qualification questionnaire (PQQ) was made available to all interested Participants who responded to the OJEU Contract Notice.

The PQQ exercise considered the expressions of interest submitted by Potential Providers, looking at:

specified eligibility criteria (the regulations list the grounds upon which an applicant must/may be treated as ineligible and not be selected).
technical ability and economic and financial standing, in order to identify the eight applicants that best meet the Partnerships’ PQQ evaluation criteria.
The methodology for the PQQ selection process that was applied was approved prior to advertising the OJEU notice and the subsequent PQQ documentation.

Joint Committee Agreed the Evaluation Criteria and Weightings: January 2010.

The Joint Committee governing the Project agreed the overall Criteria and Weightings and these are set for the duration of the Procurement. A detailed evaluation exercise will be conducted by the Partnership at each stage of the Competitive Dialogue Procedure. The Solutions will be scored against Level 1, Level 2, Level 3 and 4 criteria. The detailed evaluation criteria, methodology and scoring frameworks will be communicated to all Participants at all stages of the Procurement process.

Invited to Participate in Dialogue (ITPD) Select list of Participants Announced: May 2010.

The invitation to Participate in Dialogue documentation includes, amongst other detailed information, the Invitation to Submit Outline Solutions (ISOS). This represented the first stage of the Competitive Dialogue Procedure. The purpose of the ISOS was to initiate and develop dialogue with the selected Participants with a view of identifying the Most Economically Advantageous Tender which best meets the Partnership’s requirements for the Project.

The Participants invited to participate in the Competitive Dialogue Procedure are listed below in alphabetical order:

Covanta Energy Ltd
MVV Umwelt Gmbh
Shanks Group PLC
SITA UK Ltd
Urbaser Ltd
Veolia ES Aurora Ltd
Viridor Waste Management Limited
Waste Recycling Group Ltd

Invitation to Submit Detailed Solutions (ISDS) Shortlist Announced: December 2010.

The ISOS questionnaire within the ITPD documentation gave Participants the opportunity to present their Solution(s) and demonstrate why they should be invited to participate in the Competitive Dialogue Procedure.

The evaluation of the ‘Outline Solutions’ was undertaken in accordance with the pre-determined published evaluation criteria, methodology and scoring frameworks as set out in the ITPD documentation. For each solution, the following areas were evaluated:

Technical & Service
Deliverability & Integrity of Solution
Financial and Commercial
Legal & Contractual

Covanta Energy Ltd: Covanta Energy Ltd is proposing a merchant Energy from Waste (EfW) facility located at Brig y Cwm, Merthyr Tydfil. www.covantaenergy.co.uk

Veolia ES Aurora Ltd: Veolia ES Aurora Ltd is proposing an Energy Recovery Facility (ERF) located at Bowlease Common, South of the existing Corus Llanwern Steelworks, Newport. www.veoliaenvironmentalservices.co.uk

Viridor Waste Management Ltd: Viridor Waste Management Ltd is proposing a merchant Energy from Waste (EfW) with Combined Heat and Power facility located at Trident Park, Cardiff. www.viridor.co.uk

Waste Recycling Group Ltd: Waste Recycling Group Ltd is proposing an Energy from Waste facility located at Cardiff Road, Dow Corning, Barry. www.wrg.co.uk

Invitation to Submit Detailed Solutions (ISDS)

This stage of the Competitive Dialogue Procedure requires the Short listed Participants to further refine their Outline Solutions and ultimately submit a detailed submission of their Solutions.

Invitation to Submit Final Tenders (ISFT)

This stage of the Competitive Dialogue Procedure outlines the Partnership's requirements for the submission of the Final Tenders following the evaluation of the Participants Detailed Solutions.

The distribution of the ISFT document does not mark the conclusion of the Dialogue phase for the Competitive Dialogue Procedure. The Partnership shall determine when Dialogue shall be closed and Final Tenders requested.

Closure of Dialogue: Following approval from the Project Board and the Welsh Government on October 17 2012, Competitive Dialogue was closed on October 19 2012.

Final Tenders: 20 December 2011

Following an in depth evaluation process, the shortlist was announced and the following companies were invited to submit final tenders.

Veolia ES Aurora Ltd - Llanwern Steelworks in Newport

Viridor Waste Management Ltd - Trident Park in Cardiff

The aim of this stage was to finalise all elements of the proposed solutions and to close out any significant outstanding issues. It is important to note that the Partnership was inviting Participants to submit Final Tenders based upon their proposal at the detailed stage of the procurement process.

Preferred Bidder announced

The Final Tenders were evaluated in accordance with the agreed and published evaluation methodology and the Public Contract Regulations and Viridor was recommended by the Project Board on January 30th to the Joint Committee on February 7 and approved by each Council between February 26 and March 6.

Financial Close and Award of Contract: December 2013

Following the Partnership discharging its obligations on debriefing and Alcatel obligations to the unsuccessful participants. The contractual documentation was finalised within the stated parameters of the Preferred Bidder Letter. The Contract was awarded to Viridor Waste Management Ltd - Trident Park in Cardiff on 10th December 2013.

Contract Award Notice advertised in the OJEU: December 2013

An award notice was advertised in the European Journal. (PDF, 93Kb)

Procurement of Waste Treatment Services for Residual Municipal Waste Documents:

Procurement Strategy (PDF, 171Kb)
Pre-Qualification Questionnaire (PDF, 408Kb)
Procurement Plan (PDF, 232Kb)
Invitation to Participate in Dialogue (PDF, 355Kb)
ITPD Appendices (PDF, 2Mb)
Invitation to Submit Detailed Solutions (PDF, 888Kb)
ISDS Appendices (PDF, 7.3Mb)
ISFT Documentation (PDF, 1Mb)
ISFT Appendices (PDF, 1.4Mb)

Did you know?

The decomposition of waste in the absence of air, gives off methane. As a molecule, methane is 23 times more potent as a green house gas than carbon dioxide.
In the UK approximately 2.4 million tonnes of methane is release each year. Emissions from municipal solid waste landfill sites account for 27% of the national total.
Methane is recovered from landfill operations, but the collection rate at best is only 10%. This has to be compared to residual waste treatment plants where the collection rates are between 40-60%.

Landfill has historically been the chosen method to deal with waste. This cannot continue and a solution has to be found.

A third of all the food we buy ends up being thrown away.
In Wales we throw away 330 000 tonnes of food waste each year.
Organic waste, such as fruit, vegetables and tea bags make up to 38% of the contents of the average dustbin.
An estimated 6.7 million tonnes of household food waste is produced each year in the UK, most of which could be eaten.

Each of the local authorities in Prosiect Gwyrdd are committed to divert as much food waste as possible for composting and plans are underway to implement new schemes.

Every year in the UK, we throw away 28 million tonnes of rubbish from households. This weighs the same as three and a half million double decker buses.
Every day 80 million food and drink cans end up in landfill.
In the UK, we fill about 300 million square metres of land with rubbish each year.
We produce 20 times more plastic in the UK than we did 50 years ago.

Each of the local authorities in Prosiect Gwyrdd is committed to recycling and composting as much waste as practically possible. Residents have a duty to reduce and reuse as much waste as possible so that we can all improve the environment. Waste is everyone's problem.

Wyddech chi?

Mae gwastraff sy'n dadelfennu heb aer yn cynhyrchu methan. Fel moleciwl, mae methan yn gallu cynhyrchu 23 gwaith yn fwy o nwyon ty gwydr nag yw carbon deuocsid.
Yn y DU, rhyddheir oddeutu 2.4 miliwn o dunelli o fethan bob blwyddyn. Mae allyriadau o wastraff dinesig solid mewn safleoedd tirlenwi yn 27% o'r cyfanswm cenedlaethol.
Cesglir methan o weithredoedd tirlenwi, ond 10% ar y mwyaf yw'r gyfradd gasglu. Rhaid cymharu hwn â gwaith trin gwastraff gweddilliol lle mae'r cyfraddau casglu'n llawer uwch (gweler y tudalen dewisiadau).

Tirlenwi yw'r modd traddodiadol o ddelio â gwastraff. Ni all hyn barhau ac mae'n rhaid cael hyd i ateb arall.

Mae un rhain o dair o'r bwyd a brynwn yn cael ei daflu yn y pen draw.
Yng Nghymru, rydym yn taflu 330,000 tunnell o wastraff bwyd bob blwyddyn.
Gwastraff organig, megis ffrwythau, llysiau a bagiau te, yw hyd at 38% o gynnwys bin arferol.
Cynhyrchir oddeutu 6.7 miliwn o dunelli o wastraff bwyd cartref yn flynyddol yn y DU, a gellir bod wedi bwyta'r rhan fwyaf ohono.

Mae pob un o'r awdurdodau lleol sy'n rhan o Broject Gwyrdd wedi ymrwymo at ddargyfeirio cymaint o wastraff bwyd â phosibl i gael ei gompostio. Mae cyllid wedi'i glustnodi gan Lywodraeth y Cynulliad ar gyfer pob awdurdod.

Rydym yn taflu 28 miliwn o dunelli o sbwriel o gartrefi bob blwyddyn yn y DU. Mae hyn yn pwyso'r un faint â thua tair miliwn a hanner o fysus deulawr.
Mae 80 miliwn o dunelli o ganiau bwyd a diod yn mynd i safleoedd tirlenwi bob dydd.
Yn y DU rydym yn llenwi tua 300 miliwn o fetrau sgwâr o dir gyda sbwriel bob blwyddyn.
Rydym yn cynhyrchu 20 gwaith mwy o blastig yn y DU nag oeddem yn ei wneud hanner canrif yn ôl.

Mae pob un o'r awdurdodau lleol sy'n rhan o Project Gwyrdd wedi ymrwymo at ailgylchu a chompostio gymaint o wastraff ag sy'n bosibl. Mae dyletswydd ar breswylwyr i leihau ac ailddefnyddio gymaint o wastraff â phosibl er mwyn i ni gyd wella'r amgylchedd. Mae gwastraff yn broblem i bawb.