Partnering Agreement for Environmental and Street Scene Services

Overview

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 8 working days from the publication of this notice in order to: • Extend the duration of the Contract by 2 years (this extension was not originally provided for in the Contract) • Include FCC's garden waste income (minus expenditure) for reporting purposes; • Remove FCC's payment to the Council to reflect "guaranteed garden waste income" ; • Reflect the Council taking a greater percentage of overspend but receiving an equivalent higher percentage of savings to reflect extension; • Remove Council's variable profit annual payment to FCC (estimated value of £25k p/a); • Add weed spraying (estimated value £60k p/a); • Reduce liability for both the Council and FCC in respect of Interior Maintenance and Repair of Public Toilet Buildings (£45k p/a); • Incorporate guarantor as a party to the deed of variation; • Extend the existing lease for part of the Willmott Lane depot.