Issue - meetings
Gateway 3 Contract Award: Recycling Resource Management
Meeting: 05/05/2026 - Cabinet (Item 9)
9 Gateway 3 Contract Award: Recycling Resource Management (RRM) Procurement 
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Minutes:
Background:
The report provided an update on the procurement of the Recycling Resource Management (RRM) Contract and set out the recommended supplier for award.
The RRM Contract was central to Medway’s statutory waste and recycling functions, ensuring the compliant transfer, storage, and treatment of household recycling. It also provided the designated disposal point for all kerbside collected recyclable materials, amounting to approximately 40,000 tonnes per year.
The new contract was due to commence on 1 October 2026 and would operate on a 3 + 3 year term, with an estimated annual value of £1.94 million.
An Exempt Appendix to the report provided the financial analysis of the procurement.
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Decision number: |
Decision:
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79/2026 |
The Cabinet agreed to award the contract to the bidder Veolia Environmental Services, whose submission was the only compliant tender received and, in line with the published evaluation methodology, had been assessed as meeting all required criteria for contract award, as set out in the Exempt Appendix. |
Reasons:
The recommended supplier was the only organisation to submit a fully compliant tender that met all mandatory and technical requirements set out in the specification. The procurement exercise evidenced limited market interest, which is consistent with current market capacity and the specialist nature of the service. As a result, no alternative tenders were available for evaluation.
The bid presents a robust, viable, and fully deliverable solution that will enable Medway to continue meeting its statutory obligations. It provides clear evidence of the supplier’s capability and capacity to deliver all aspects of the contract. The supplier currently operates around 22 contracts across London and the South, including two within Kent -Medway and Dover & Shepway -demonstrating strong regional experience and a proven track record in service delivery.
A re?tendering exercise would be unlikely to produce a different outcome given the market constraints already observed, and would introduce a significant risk of service disruption, additional cost, and potential failure to meet statutory or contractual deadlines.
Awarding the contract at this stage is therefore the most appropriate, proportionate, and defensible route to secure the required services, maintain continuity of a critical statutory function, and ensure compliance with procurement regulations and internal governance requirements.