Decision details

Household Waste Recycling Centres (HWRC) – Outsourcing of Haulage

Decision Maker: Director for Economy, Infrastructure and Skills

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

Approval to initiate a procurement exercise to outsource the haulage element of the HWRC service and to award the contract to the successful bidder following the procurement exercise.


Decision:

Transfer of all haulage responsibilities, including relevant staff and fleet to an external provider. There would be a requirement on the external provider to TUPE existing fleet staff into their operation.

Consideration to be given, once the future of the re-use operation has been agreed, to the driver and van associated with the transportation of re-use donations.

The decision was made after consideration of the following:

• SCC has not operated a HWRC in-house service for many years and does not have the direct relevant experience within its current workforce to manage a haulage operation which would require logistical knowledge and relevant qualified employees (statutory requirement).
• By outsourcing haulage, the Council will be able to concentrate its efforts on the public facing side of the HWRC service which should lead to customer experience improvements.
• Fleet would need to be procured, together with maintenance service contract provision and would become the responsibility of the Council.
• A soft market testing exercise has indicated that the local market has the flexibility, expertise and infrastructure to efficiently run this type of operation.
• Although an outsourced option will attract additional costs such as profit and third-party overheads it is felt that these will be mitigated to a certain extent by the opportunity for improved resource utilisation.
• The size of the existing fleet makes it difficult respond to quiet and busy periods and an outsourced model should allow for peaks and troughs to be managed more efficiently


Alternative options considered:

Two options were considered:

Option A: Retain the haulage element as an in-house service which will move across to the Council’s control from 30 March 2022; and

Option B: Transfer of all haulage responsibilities, including relevant staff and fleet to an external provider. There would be a requirement on the external provider to TUPE existing fleet staff into their operation. And that consideration be given, once the future of the re-use operation has been agreed, to the driver and van associated with the transportation of re-use donations.


Publication date: 12/07/2021

Date of decision: 12/07/2021