Queensland’s Toowoomba Regional Council (TRC) is investigating cost savings that could be achieved by moving to a new procurement approach for its next waste collection service contract.
Starting 1 July 2021, Cleanaway will provide general waste and commingled recycling collection services under a 10-year agreement with Logan City Council.
Logan City Council Mayor Darren Power said in addition to the collection of waste and recycling bins, the new agreement includes options for council to introduce a garden waste bin service and an on-demand bulky waste pick-up service across the city.
“We will be considering these options over the next few months,” he said.
The tender was awarded after a comprehensive evaluation of bids, Power said, conducted under the supervision of an external probity advisor.
According to Cleanaway Solid Waste Services General Manager David Wheeley, the contract will enable 60 new local jobs, with additional opportunities in procurement and supply.
“Cleanaway’s mission is ‘to make a sustainable future possible’ and for us this means taking a leadership role in environmental sustainability, providing sustainable employment for our people and actively supporting the communities we are part of,” he said.
“Our new side-lift collection fleet will be equipped with the Cleanaview, our in-cabin technology which provides real-time data on collection services and enables us to provide support to residents to use our services correctly, reduce contamination and reduce waste to landfill.”
Cleanaway will continue providing general and hard waste collection services to the City of Sydney South, under a 10-year contract extension with council.
According to a Cleanaway statement, seven vehicles and 21 staff have been added to the company’s Hillsdale Depot to support additional services, with a total of 86 Cleanaway employees now servicing the city.
“With the new agreement, Cleanaway will now be providing essential waste services including commingled and green waste recycling to the entire City of Sydney, both North and South, as it was previously known,” the statement reads.
General Manager Solid Waste Services David Clancy said Cleanaway is proud to providing council and residents with essential waste services.
“Thanks to the entire Cleanaway team that has worked to deliver the new contract extension during these challenging times,” he said.
SUEZ has renewed its contract as Sydney Trains’ waste management provider, continuing a seven-year partnership with the rail operator.
SUEZ will continue to service Sydney Trains’ network of infrastructure throughout the greater Sydney area and across New South Wales, including train stations and maintenance facilities operations centres.
SUEZ NSW State General Manager Tony Grebenshikoff said the renewal follows a competitive tender process, and reflects SUEZ’s record of successful service expansion across the Sydney Trains network.
“A new feature of the contract includes the introduction of advanced technologies, such as weight-based billing and enhanced reporting capabilities, as well as additional training modules that can be easily accessed by all employees through a range of devices,” Mr Grebenshikoff said.
“These and other initiatives will enable SUEZ to work closely with Sydney Trains to provide a seamless and streamlined experience under the renewed, up to 5 year, contract.”
Mr Grebenshikoff said SUEZ had worked closely with Sydney Trains on the rollout of multiple initiatives to achieve waste reduction targets.
“We are proud to have maintained an average on time service success rate of 98 per cent,” Mr Grebenshikoff said.
“SUEZ looks forward to continuing to work with Sydney Trains to provide safe, reliable and efficient collection services across all sites, and supporting this essential public transport network in Australia’s largest city.”
Sydney Trains Chief Executive Howard Collins said the contract renewal enables SUEZ to continue an already well established partnership between the two parties.
“We have been satisfied with the service provided by SUEZ over the past seven years, and we look forward to seeing what new initiatives SUEZ has that will provide further efficiencies in waste management.”
WA’s East Rockingham Resource Recovery Facility has awarded waste management giant SUEZ a 20-year minimum contract as waste management partner.
SUEZ has partnered with a consortium of four companies running the facility – Hitachi Sozen INOVA (HZI), Tribe Infrastructure Group and New Energy Corporation, which won a series of competitive tenders for long-term contracts in the Perth metropolitan area before securing the East Rockingham partnership.
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The facility encompasses the design, construction, financing and operation of a greenfield waste-to-energy facility, 40 kilometres south of the Perth CBD.
The project aims to treat approximately 300,000 tonnes of waste per year from municipal, commercial and industrial sources including up to 30,000 tonnes per year of biosolids.
Energy generation targets are expected to reach 29 megawatts of renewable energy, enough to supply 36,000 homes following the start of construction slated for 2019.
SUEZ will provide 65,000 tonnes per year of commercial and industrial waste, maintenance services, removal of non-processable waste at its Bibra Lake and North Bannister facilities and the purchase of renewable electricity generated for its Perth operations.
This is the second waste-to-energy plant planned for the Rockingham-Kwinana industrial region.
The Australian Competition and Consumer Commission (ACCC) has authorised a group initiative of SA councils to jointly procure kerbside waste collection services.
The councils of Adelaide, Charles Sturt, Marion and Port Adelaide Enfield have been authorised to appoint a single provider for kerbside waste collection services.
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In the context of procuring waste services, councils may be considered to be each other’s competitors, which is why authorisation from the ACCC was required.
Broadly, the ACCC can grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any detriment.
Interim authorisation was granted on 20 July 2018, which allowed the councils to commence the tender processes. The tender closes on 12 December 2018 and will cover around 180,000 rateable properties.
According to the ACCC, it is common practice throughout Australia for local councils to jointly tender for waste services to reduce transaction costs, pool resources and expertise and achieve economies of scale. The ACCC has authorised 30 of these agreements so far, after concluding they were likely to benefit the public.
ACCC Commissioner Sarah Court said a joint tender process is likely to improve the four councils’ purchasing power and encourage more competition from suppliers than if each council conducted a separate tender process.
“It is common for groups of local councils to jointly procure waste services. The ACCC has authorised many such arrangements across Australia over the years,” she said.
“The joint tender process is likely to result in cost savings through encouraging more competitive bids, reducing transaction costs, and other efficiencies. These cost savings can be passed on to Adelaide residents in the form of lower costs or improved services,” Ms Court said.
The ACCC considered information both for and against the joint tender arrangement.
“Some suppliers raised concerns that the size of the proposed contract would deter some suppliers from tendering, resulting in a worse deal for ratepayers,” Ms Court said
“While there may be some companies that choose not to participate, the larger tender is also likely to attract additional bidders, and overall we consider most of the potential suppliers which would bid if the councils contracted separately are also likely to compete for the joint contract.”
“The councils have the experience and incentive to decide whether running a single tender process for a larger volume of work or four smaller, separate tenders, is likely to deliver the best outcomes for their respective communities.”
The ACCC also considered the longer-term impact of the joint tender on competition for waste collection services in Adelaide and found unsuccessful applicants will continue to have other opportunities to provide waste management services in other parts of the city.
The City of Sydney has selected Cleanaway as its new waste and recycling provider with a seven-year contract beginning 1 July 2019.
Services for the council will include general waste, recycling, garden organics and bulk or hard waste and electronic waste kerbside collections.
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The contract also includes 25 new vehicles which have Cleanaway’s integrated data platform installed. The system uses on board cameras to track collections and service events like missed pick-ups, broken bins and can be used for single-call customer service response. Cameras can also provide insights that aim to reduce contamination, improve recycling and increase truck safety.
Cleanaway’s education team will also provide the City of Sydney with sustainability training which aims to reduce waste sent to landfill and improve recycling rates.
Cleanaway Regional Manager – Sydney Metro Michael Sankey said the company looks forward to bringing its expertise to Sydney.
“As part of the contract, Cleanaway will be setting up a new facility and implementing new operational teams and some educational resources,” he said.
“Over the next seven years we’ll be working closely with the council’s waste management team to add value for the community and help the City of Sydney achieve their sustainability goals.”