Milton Keynes City Council (the ‘Authority’) contract for the provision of the operation and maintenance of Milton Keynes Waste Recovery Park (MKWRP) (the ‘Contract’).The MKWRP is an innovative, operational residual waste recovery facility comprising three adjoined and interlinked technologies: mechanical treatment, dry anaerobic digestion and advance thermal treatment, capable of processing up to 132,000 tonnes per year and providing critical infrastructure to deliver the Authority’s statutory waste disposal functions.The service requires the appointed contractor to work in partnership and collaboration with the Authority to optimise the capacity, efficiency and overall performance of the MKWRP to achieve a design life up to at least 2042.

The estimated total value of £313,710,755 included in this Contract Award Notice is the estimated total gross spend under the Contract for the full possible contract period of 15 years at the point of contract signature, taking into account up to date assumptions regarding costs. The estimated figure does not take into account any potential income that may be received by the Authority under the Contract. The estimated value excludes VAT, any estimate of inflation and the implementation of any future service changes (including anticipated Changes).The estimated value may fluctuate due to the first two years of the Contract being payable on an open book, pass through basis. The estimated value may also be affected by fluctuations in waste disposal costs, the energy markets, inflation, pass through costs, capital investment enhancements made to the installation during the Contract period and any other costs which cannot be quantified at Contract commencement for which a number of assumptions have been made, as well as (without limitation) legislative and policy changes in the waste sector. There is no fixed total cost for this Contract so the estimated total value should be treated as an estimate only and shall not constitute a guaranteed or cap on spend under the Contract. The actual sums payable under the Contract will be determined in accordance with the terms of the Payment Mechanism (Schedule 7) to the Contract. The Contract's Services Commencement Date is 01.10.2026. The Contract's Expiry Date is 30.09.2036, subject to an option to extend the Services by a maximum of five years up to 30.09.2041

The procurement is for the Authority's contract for the operation, maintenance and treatment of residual waste at the MKWRP.The Authority is seeking a single integrated contract (with a single supplier or consortia) to provide the full scope of services, which include (without limitation) the operation and maintenance of the MKWRP, the management, acceptance, haulage, treatment, recovery and disposal of residual waste (including third party local authority waste), and outputs, the marketing and sale of third-party capacity and the marketing, generation and sale of electricity and heat (along with other ancillary services). The services also include (without limitation), entry into third party power purchase agreements in relation to electricity generated at the MKWRP and the maintenance of MKWRP's private wire network.During the Contract term, the Authority is keen to engage with the Contractor on opportunities for technological and commercial innovation and continuous improvement. Additional information: Please see section VI.3 (Additional Information) Options: Extension to the duration of the Contract: the initial term of the Contract is 10 years. The Authority reserves the right at its discretion to extend the term of the Contract for a further period of up to 5 years on notice.Anticipated Changes: The Authority reserves the right to introduce the following anticipated changes to the Services during the term of the Contract:Use of capital funding to support lifecycle replacement and improve MKWRP’s efficiency and capacity for processing material and generating electricity/heat, with the intention to produce additional revenues from the sale of such electricity/heat (including by way of connection to a City-wide district heating network);Use of the biological treatment facility (via dry anaerobic digestion) to process separated food and garden waste from households; The introduction of other municipal waste streams including (non-exhaustively) recyclatesUse of the mechanical treatment facility to process mixed plastic, cans and glass separately collected from households;Explore opportunities to improve extraction of fossil-based carbon through the mechanical treatment facility to mitigate the impact of the UK Emissions Trading Scheme;Explore initiatives to stabilise and reduce contract waste volumes;Expand the private wire arrangements at MKWRP to power operational fleet vehicles and neighbouring consumers;Investigate the potential employment of bespoke modular complementary technologies to offset post treatment disposal costs; andSupport future heat/electricity offtake models including private wire, synthetic, sleeved PPAs and heat offtake agreements, including the construction of an energy centre within or adjacent to the Site, such construction works to be competitively tendered.Further details of all options available are set out in the Contract

Public Contracts Regulations 2015 (Directive 2014/24/EU)

Competitive dialogue

Lot 1: Bids: 3 Lot 1: Sme bids: 0 Lot 1: Foreign bids from eu: 0 Lot 1: Foreign bids from non eu: 0 Lot 1: Electronic bids: 3