Turning Waste into Revenue with the Hertfordshire Waste Partnership
Turning Waste into Revenue with the Hertfordshire Waste Partnership

additional income per annum

By using a forward e-auction, The Hertfordshire Waste Partnership (HWP) recently achieved an income that was 25% more than the market average for newspapers and magazines (ex works) recovered from the domestic waste stream.

The e-auction was run by the Government Procurement Service and facilitated by East of England LGA (formerly Improvement East). As well as the HWP, Chelmsford Borough Council joined the consortium consequently benefitting from the additional income. Welwyn Hatfield Borough Council undertook the procurement process for HWP, led by their Procurement Manager, Andrew Harper.

The process was run on an open basis with bidders first having to pass a quality threshold before being admitted to the e-auction. The auction was based on the price paid to the Councils within the consortium for a tonne of newspapers and magazines collected from any location in Hertfordshire.

Having confirmed their initial bid price before the auction commenced, the bidders then had the opportunity of increasing their bids by a minimum of 25 pence increments. Each increment of 25 pence represented an additional income of over £5,000 per annum to the consortium, based on the estimated volumes of recovered paper likely to be collected.

There were a total of 15 bids placed during the auction resulting in an additional income of over £80,000 per annum, compared to the initial price received in the initial stage of the tender process.

The eventual winner of the Auction was UPM Kynmene who have secured a minimum 2 year contract with the HWP.

If you would like to know more about the use of forward e-auctions to drive up revenue or reverse e-auctions to drive down contract costs, please contact Eddie Gibson at 01284 758310 or eddie.gibson@eelga.gov.uk or the Government Procurement Service e-auctions team at 0345 410 2222 or info@gps.gsi.gov.uk.