The service requirements section of the Output Specification defines the services required by the Authority and sets out the minimum output standards applicable. For example, minimum waste delivery vehicle turnaround times may be prescribed or the minimum requirements for the management of a visitor centre may be prescribed. Failure to achieve the minimum requirements or to follow the agreed procedures results in the application of deductions to the Unitary Charge. Therefore, the key service requirements have to be identified and the means of measuring performance (bid back by bidders) have to be clear and practical.
The Output Specification should focus on outputs and not prescribe the means by which the outputs are achieved. As a consequence, Authorities should consider, for example, whether all of the maintenance requirements set out in paragraphs 3.38-3.61 of the suggested drafting set out in Part II of this Module are necessary for the facility they are procuring. Relevant considerations include whether any of the facilities are public facing in which case amplified maintenance provisions such as those set out in PR3.4 may be more appropriate.
It is proposed that the key Performance Standard is the diversion of MSW from landfill as opposed to a standard relating to diversion of BMW from landfill. This approach is being proposed given that, in most cases, the diversion of MSW from landfill, whether through energy recovery and/or recycling will also achieve a corresponding diversion of biodegradable waste.
Bidders’ responses to the level of diversion to be achieved by their solution (expressed as a percentage of unprocessed Contract Waste plus a percentage residue from the processing of Contract Waste that goes to landfill) will become contractual targets.3 The level of BMW diversion will depend on the Residual Waste Treatment Facility (RWTF) proposed. The suggested drafting in Part II assumes the simplest case i.e. direct Energy from Waste (EfW) treatment that results in 100% diversion of BMW for every tonne of waste processed by the RWTF (although some unprocessed waste and some residues will be landfilled). Where other treatment processes are proposed the Authority should require bidders to provide greater detail of the outputs from the RWTF such as tonnage, type (ash, compost etc) and biodegradability of residues.
The Authority should assess the level of biodegradable diversion achieved by the RWTF specifically and the waste management system as a whole in order to gauge its performance against the Landfill Allowance Trading Scheme (LATS) scheme. The level of biodegradable waste diverted by the RWTF will depend on the type of process used. Bidders are required to state the biodegradable content of all residues to landfill and to include in their Method Statements the procedures for sampling, measuring and monitoring that will be applied.
Performance Standards will also be stated for other aspects of service delivery, e.g. the delivery of Monthly Service Reports. Failure to achieve these Performance Standards results in deductions applied to the Unitary Charge. The Output Specification and Payment Mechanism will have to identify what the Performance Standards are, how important they are, how they will be monitored, what rectification period will be allowed and what deduction will apply for failure to rectify.
The scope of Services shall include the provision, maintenance, management and operation of Site(s) and Facility(s) and the Method Statements required for the receipt, handling, storage, transportation, treatment and disposal of all Contract Waste.
The collection of Contract Waste, the management of recycling and/or composting facilities and/or transfer facilities that treat non-residual waste fall outside the scope of Services.
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3 Bidders should take into account all possible sources of waste to landfill including fly ash, bottom ash, compost-like output and unprocessed Contract Waste.