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RESOLVED:
 
Cabinet Procurement
& Insourcing Committee awarded the purchase of twenty four (24) 26 tonne ‘narrow track’
6x2 rear steer refuse collection vehicles to Supplier C through the
Halton Housing framework - lot
identification ‘Medium & Commercial Vehicle
Conversions’.
 
Twenty (20) of these
RCV’s will be fitted with ‘trade’ bin lift
systems for the collection of trade bins. Four (4) will be fitted
with ‘split’ bin lift systems for the collection of a
variety of wheeled bins.
 
All RCV bodies to be
fitted with fire hydrant connections.
 
REASONS FOR DECISION
 
Environmental Operations use a large number of
refuse collection vehicles (RCV’s) to deliver their waste
collection service to Hackney's local community encompassing an
ever increasing population.
 
There is an obligation to separate waste into
several categories all requiring separate vehicles to enable the
different waste streams to be collected without contamination. Many
years ago these separate waste streams were collected in the same
vehicle but now many more are required.
 
The existing vehicles are working much harder
than ever before incurring more wear & tear. The 24 older
vehicles were scheduled to be replaced at year 7 but are now 8
years old and suffering high levels of unreliability and
consequential downtime. They will be 9 years old by the time new
vehicles are delivered.
 
This is impacting on Environmental Services
ability to deliver their service and costing the service more
through high repair costs and the use of rental vehicles to cover
downtime.
 
For more than 20 years the service has used
‘narrow track’ RCV’s to enable the vehicles to
access Hackney’s inner city road network with many narrow
residential streets and its dense traffic conditions.
 
Only one supplier manufactures the
‘narrow track’ refuse collection vehicle and this
supplier is accessible through several frameworks.
 
Market testing identifies the supplier as
being accessible through TPPL, Crown Commercial Services, ESPO, YPO
and Halton Housing Framework.
 
Each of these frameworks will charge a
commission for using them but Halton
Housing charges the lowest cost at a fixed £50.00 per
vehicle. All the others charge a percentage of the contract spend.
See Appendix 1 for a breakdown of charges, under 15.2.
 
The vehicles are specified to the highest
technical, environmental and safety standards available at this
time. They will be Ultra Low Emission Zone (ULEZ) and Direct Vision
Standard (DVS) compliant. They will also meet the newest EU
standards known as ‘General Safety Regulations’ (GSR2)
which are mandatory from 1st January 2025.
 
The vehicles will be compatible with operating
on HVO contributing to the Councils fleet environmental
strategies.
 
The quotations attached at Exempt Appendix 2
demonstrates that the supplier can meet our vehicle specification
requirements and are happy to provide the vehicles via the
Halton Housing Framework. KPI’s
based on delivery timings can not be
agreed until an order is actually placed with them via the
framework.
 
DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND
REJECTED
 
This is a simple asset purchase so there is no
option of ‘insourcing’.
 
Option 1 is to do nothing, i.e. try to
maintain the service with the existing vehicles which is already
proving to be problematic as they regularly break down.
 
Option 2 is to lease the vehicles instead of
purchasing them which will prove more expensive. An independent
financial options appraisal is attached at Exempt Appendix 3 that
demonstrates the costs associated with purchase, PWLB borrowing,
operating lease (residual based leasing) and Finance lease
(non residual based leasing).