Issue - meetings

Medway Norse New Contract Update

 

 

Meeting: 07/04/2026 - Cabinet (Item 10)

10 Medway Norse Contract Extension Procurement pdf icon PDF 198 KB

Minutes:

Background:

 

This report sought permission to re-engage Medway Norse Limited to continue to operate services for Medway Council as a Joint Venture (JV) LATCo.

 

The Medway Norse partnership reflected the Council’s core values by delivering customer?focused services that provided value for money. The services within this contract directly supported the Council’s priority for clean, green, safe and connected communities and also contributed to wider priorities by ensuring reliable SEND Transport, supporting access to education, maintaining attractive public spaces, and improving health and wellbeing across Medway.

 

The report explained that the Medway Norse contract had expired in March 2023. Since then, the Council had relied on the strength of the joint venture and the well-established partnership to maintain service delivery and operate services on implied terms from the out-of-date contract. The lack of a current contract had been raised as a concern by CIPFA. Agreement of the proposed contract would ensure a structure was in place for delivery of these services up to and beyond Local Government Reorganisation but without tying the successor authority into a long term contract.

 

The proposed option of a new 60?month contract (with a 24?month extension option) would provide immediate stability, ensure statutory service continuity and address the governance risk identified by CIPFA arising from operating without an executed contract.

 

Decision

number: 

Decision:

 

The Cabinet noted the contents of the report and noted that the contract was performing equal to, or above, expectations for the services which would remain in the joint venture after April 2026 as follows:

 

·     Waste Services.

·     Greenspace Maintenance.

·     Household Waste Recycling Centers (HWRCs).

·     SEND transport.

67/2026

The Cabinet approved the re?engagement of Medway Norse Limited to continue operating the frontline service functions detailed above [and as set out in 1.1 of the report]. This would maintain the Joint Venture arrangements, enabling Medway Norse Transport Limited to continue delivering SEND Transport.

68/2026

The Cabinet approved the establishment of a new agreement commencing 1 April 2026 and running until 31 March 2031 (60 months), with an option to extend for a further 24 months.

 

Reasons:

 

Agreement of this contract will enable the Council to continue to meet its statutory obligations and will strengthen the joint venture securing the continuity of frontline services and SEND transport. 

 

The proposed contract structure and length strengthen client oversight and ensure the services are aligned with upcoming changes, including Local Government Reorganisation, national waste reforms and the Council’s Climate Change Action Plan, ensuring the joint venture remains fit for purpose over the next contract term.

 

In addition, the timeframe means that the necessary investment in resources can be aligned to the forthcoming business plan objectives.

 

The contract must be established in accordance with TECKAL requirements to ensure the joint venture remains compliant as a Local Authority Trading Company (LATCo) and to enable the Council to award the contract directly without undertaking a full procurement exercise.