Appendix 2 Risk Register

Risk

Description

Controls

Rating

Further controls required

Volatility of Vehicle Market

Vehicle lead-times increase further, inability to secure sufficient vehicles to provide part / whole statutory waste service

-      Contract extension until March 2024 to give 14 month lead-time

-      Incumbent available to use existing fleet

-      Additional 3-month extensions

-      Hire vehicles

High

-      Monthly monitoring of vehicle lead-times

-      Agreements in place for hire vehicles

-      Update Business Continuity Plans

Contract Value

Final Tender is not affordable due to significant increase in Contract Value

-      Increase included in MTFS

-      Competitive dialogue process to identify risk pricing and avoidable costs

High

-      Review before Invitation to Submit Final Tender

Incumbent withdraws from process

Due to the current market conditions, several large contractors have withdrawn from contract negotiations. The incumbent could decide the risk within the new contract exceeds their risk appetite and therefore withdraw from the process prior to the extension being agreed.

-      Agree extension prior to Final Tender

-      Reviewing specification following feedback from bidders during dialogue

-      Issuing documents prior to Final Tender to get feedback

-      Red line issues discussed in detail

Medium

-      Agree extension urgently

Lack of Competition

Withdrawal of bidders from process due to inability to submit compliant bid or due to unacceptable risk results in lack of competition for Final Tender and increase price or result in red-line issues being non-negotiable

-      Identifying and reviewing red-line issues throughout the dialogue process

-      Extension to create fair playing field for all bidders

-      Competitive dialogue process

Medium

-      LATCo option being explored as alternative

Extension with unsuccessful bidder

If incumbent is unsuccessful / withdraw from the new contract there is a risk that the prolonged mobilisation period could lead to poor performance, withdrawal of resources, higher complaints, disengaged staff for longer period of time

-      Performance mechanism will remain in place

-      Recovery of previous losses

-      Not significantly longer mobilisation period

-      Partnership Board

Low

-      Monthly monitoring of performance

Extension exceeds 10% contract value

If the extension is extended further there is a risk, it will exceed 10% of the Contract Value and could be challenged

-      Requirement to provide statutory service

-      Delay to procurement process and not replacement

-      Those likely to challenge have had opportunity to bid

Low

-      Agreement from Ashford and Swale to this approach