Issue - meetings

Background:

This report sought the Cabinet’s agreement to commence the procurement of the replacement of the Medway Council Refuse Collection Vehicle (RCV) Fleet Contract.

An addition of £17m to the Council’s Capital programme had been approved by the Council on 20 July 2023 to fund the replacement of the RCV fleet.

Soft market testing in August 2023 suggested that the fleet could be replaced within the £17m budget with the final figure being ascertained at the Gateway 3 stage after procurement evaluation, subject to market conditions at the time of ordering.

An exempt Appendix to the report set out financial analysis in relation to the procurement.

Reasons:

Approval of Option 3 (identified at paragraph 7.2.1.3 of the report) will deliver:

·     Best possible buyers’ terms and conditions to mitigate procurement bottlenecks as a result of increased RCV demand following October 2023 UK Government Simpler Recycling announcement.

·     Reduced time to market ensuring quickest transition to a new fleet with associated operational, cost and climate benefits.

·     Mitigation against any future inflationary pressures by locking in prices at time of order.