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Buckinghamshire County Council officers are recommending reopening discussions with Covanta Energy (Covanta) and Waste Recycling Group (WRG), both of whom submitted bids in January 2009 to provide the county’s Energy from Waste service.

Since the end of September 2009, the project team has been holding discussions with Covanta to agree the terms of the Preferred Bidder appointment and clarifying aspects of Covanta’s solution.  During these discussions Covanta made the Council aware of an issue which had emerged during their final due diligence. The issue is associated with legal constraints on their site, which impacts on the commercial aspects of their bid.  This has affected the Council’s evaluation of final tenders as the matter was not taken into account at the previous evaluation phase.  

Martin Tett, Cabinet Member for Planning and Environment said: “Officers have put forward the recommendations as a result of a commercial matter which had arisen during the final phase of the project. In order to discuss this matter further, the rules of the competitive procurement process would mean that the Council has to re-open competitive discussions with Covanta and also WRG, who were unsuccessful previously.  If we fail to do this then we could face a legal challenge from the bidders, which would involve substantial delay and cost to the Council.  It could also potentially result in the case being referred to the European Court of Justice.  

“Unfortunately I am unable to disclose precise details of the legal constraints on Covanta’s site as the matter is commercially confidential to Covanta.  Disclosing details could prejudice the competitive procurement process.

“I understand this may raise concerns for some of our residents, however I would like to reassure them that if the decision to re-open the final stages of the competition is taken then we will continue to follow a robust procurement process.  This will ensure that the selected bidder provides the best solution for the people of Buckinghamshire.”

If the Council accepts the recommendations to re-open competitive discussions with Covanta and WRG, then both bidders will be asked to submit further Final Tenders in September, with a view to awarding preferred bidder status by the end of the year.