Exemption from Tender and Contract Variation - Bulky Organics and Cleansing Waste Processing

16/12/2024 - Exemption from Tender and Contract Variation - Bulky Organics and Cleansing Waste Processing

It is resolved that:

(A)      Council approve an exemption from tender in accordance with section 55(3)(i) of the Local Government Act 1993 for the provision of Organics, Bulky Waste and Cleansing Waste (Non-Putrescible) Receipt and Processing services as a satisfactory result would not be achieved by inviting tenders;

(B)      Council note that a satisfactory result would not be achieved by inviting tenders for this work because:

(i)         the City's current supplier for bulky material processing is the only suitably licensed supplier in the Greater Sydney area that can process material that delivers high rates of diversion from landfill;

(ii)        the City’s current supplier for street sweeping processing is the only suitably licensed supplier in the Greater Sydney area that can process material that delivers high rates of diversion from landfill;

(iii)      the market settings for food and garden waste processing are currently impacted by several pending changes that include legislation, planning approvals and construction timelines;

(iv)      it is not anticipated that any meaningful new processing facilities will be established during the term of the proposed extension;

(v)       the extension will allow time to test and evaluate the 12-month food organics insect processing trial due to commence in 2025; and

(vi)      Veolia as the head contractor has confirmed that it can continue to provide capacity at its transfer stations for all existing services at an acceptable distance for our collection trucks to access;

(C)      Council approve a variation to the existing contract with Veolia Environmental Services (Australia) Pty Ltd to extend the contract for a further 3 years, with a revised expiry date of 30 June 2028;

(D)      Council note the revised contract sum for the extended term is set out in the Confidential Attachment A to the subject report; and

(E)      authority be delegated to the Chief Executive Officer to negotiate and finalise the contract extension with Veolia Environmental Services (Australia) Pty Ltd for the provision of Organics, Bulky Waste and Cleansing Waste (Non-Putrescible) Receipt and Processing services.

Carried unanimously.

X011992.001