Partnering Agreement for Environmental and Street Scene Services

Gosport Borough Council (the Council) awarded a Partnering Agreement for Environmental and Street Scene Services to Urbaser Limited (the Contractor) on 1 April 2011 (the Contract). The Contract was guaranteed by Urbaser S.A.U and provided for a maximum term of 15 years with an estimated value of £2.6M for the provision of waste and recycling collections as well as street and toilet cleaning activities.

The Contract was awarded following the conclusion of a public procurement exercise ran under the Public Contracts Regulation 2006.

In March 2024, the Contractor notified the Council that it sold its entire issued share capital of the Contractor by the original guarantor to FCC Environment (UK) Limited (02902416) and requested consent from the Council to novate the guarantee to FCC, which the Council gave.

In November 2024, the Contractor changed its name to FCC Waste Management Limited (company number 03588422).

The Council intends to vary the Contract (as described in this notice) which will take place no earlier than the expiry of 10 days from the publication of this notice.

Continued from II.1.4

The Council intends to enter into a deed of variation with FCC for the purpose of making the following changes to the Contract:

• Extension to the duration of the Contract by a term of 2 years with an estimated value of £8.75M. This extension was not originally provided for in the Contract;
• Incorporate the guarantor as a party to the deed of variation to recognise that these changes are already captured by the existing guarantee as part of the original Contract;
• As a consequential change to the deed of variation, the existing lease between the Council and the Contractor for the Willmott Lane depot will expire. The Council will therefore put in place a new lease for a term of two years (to align with the extended term of the Contract) in substantially the same form as the original lease but with an updated plant to reflect the practical boundary/use of the site. Additional information: Continued from II.2.4.
• FCC's garden waste income (minus expenditure) has been included for reporting purposes into the main contract sum before margin/profit calculated to reflect income received. Collection of garden waste income from residents remains an FCC risk;
• FCC's payment to the Council to reflect "guaranteed garden waste income" has been removed as an expenditure prior to any profit being shared by the parties. Concept of profit share between the parties remains but figure changed as below.
• Exceptional profit share amended with the Council taking a greater percentage of any overspend but receiving an equivalent higher percentage of any savings to reflect extension.
• The Council's variable profit annual payment to FCC has been removed which has an estimated value of £25,000 per annum;
• Adding weed spraying into the Specification as a service to be provided rather than one which the Council could request if required. This has an estimated value of £60,000 per annum within the main contract sum instead of being pad as part of Ad Hoc Works to reflect reality this is always required.
• Reducing liability for both the Council and FCC in respect of Interior Maintenance and Repair of Public Toilet Buildings which represents a reduced spend of £45,000 per annum;

The value in II.1.7 refers to the estimated value over the further, 2 year term of the Contract.