IESE’s waste management framework will save councils money, says IESE’s Alison Templeton.
There are costs associated with the procurement and costs associated with supporting councils and contractors throughout the framework.
But even taking these costs into account the waste framework will save councils significant amounts of money.
The very nature of the framework is designed to save money at a time when local authority budgets are hard pressed, by providing a single framework procurement which councils then use to call off contracts through mini competitions.
Currently many councils go to market individually which leads to a fragmented approach to the market, unnecessarily large consultancy costs and a large number of full tenders for suppliers to handle.
Because of their size, some councils do not have the depth of knowledge and market intelligence of the waste market needed to determine whether they are getting the best deal possible and do not have the buying power to influence that market.
iESE’s waste management framework is expected to save around £85m over the next four years for a 141 councils with a potential value in the region of £1.7bn going through the framework.
It will not only exercise councils’ collective buying power with most of the procurement work only having to be done once, but it will also start to leverage savings for suppliers as well.
Suppliers to the framework will pay a rebate which will be used to fund iESE’s support work. The rebate is capped and we will ensure that the actual rebate charged is both fair and sustainable.
In fact it is inconceivable that iESE would charge a rebate that is too high. iESE is a ‘not for profit’ organisation owned by the local authorities it serves. Unlike a private sector consultancy neither iESE nor its owners benefit if iESE charges are too high.
We submit iESE’s charges to local authorities for review and approval annually, thus ensuring that they are and will remain sustainable and creating a win win situation.
Alison Templeton is director of market leverage at IESE