Appendix 1 Risk Management Mid Kent Waste Contract Award

Vulnerability/Risk

Trigger

Consequences

Current Rating

Contract Award

-          One or more authorities do not agree the award

-          Bid is not compliant so cannot be awarded

-          Bidder withdraws from process

Contract cannot be awarded

Reputational risk to the Council

Unable to deliver statutory duties

Legal costs

 

Likelihood: 2

Impact: 4

 

Rating:8

Deliverability

-          Resource plan is not robust

-          Mobilisation plan not adequate

-          Insufficient experience

-          Data provided is inaccurate

-          Specification unclear or misinterpreted

Service failures

Reputational risk to the Council

Unable to deliver statutory duties

 

Likelihood: 3

Impact: 4

 

Rating: 12

Vehicle availability

-          Lead-times become prolonged

-          Order books closed

-          Hire market limited

Service failures

Unable to deliver statutory duties

Reputational risk to the Council

Likelihood: 2

Impact: 4

 

Rating: 8

Financial

-          TUPE information incorrect

-          Indexation increases significantly

Contract cost exceeds the budget within MTFS

Service reductions required to meet budget

Savings required elsewhere to offset costs

Likelihood: 3

Impact:3

 

Rating: 9

Challenge

-          Contract extension

-          Non-compliant bid accepted

-          Process unfair

Delay to contract award

Contract cannot be awarded

Likelihood: 2

Impact:3

 

Rating: 6

 

No.

Current Rating

Target Rating

Risk

1

8

6

Contract Award

Control in place

Adequacy of controls

Required action/control

Responsible Officer

Success Factors

Date for Review

Regular and ongoing engagement with decision makers

Decision already taken by Members to pursue this route

Maidstone has depot and resources available to offer alternative service if required

Business continuity plans

Extension option available with incumbent

Good

Joint meeting of Cabinet / Executive / Committee if decision is not agreed in December to consider options

Jennifer Stevens

Contract Award

Decision taken by each authority

Letter of Comfort issued

Weekly until end Jan 2023

 

 

No.

Current Rating

Target Rating

Risk

2

12

8

Deliverability of Service

Control in place

Adequacy of controls

Required action/control

Responsible Officer

Success Factors

Date for Review

Competitive Dialogue process to refine solution and issue clarifications

Consultant support to review resource plans and submissions

Bidder CVs and experience captured in submission

Client officers reviewing resourcing and submission and seek clarification

Contractual protections in place

Good

References followed up

Regular mobilisation meetings to identify risks

Risk register to be created for mobilisation

 

Jennifer Stevens

Mobilisation Plan in place and delivered

 

Monthly

 

No.

Current Rating

Target Rating

Risk

3

8

6

Vehicle Availability

Control in place

Adequacy of controls

Required action/control

Responsible Officer

Success Factors

Date for Review

Quotes obtained from vehicle manufacturers with lead-times

Contract commencement delayed enabling longer mobilisation period

Further extensions of current contract available

Vehicle specifications simplified where possible

Vehicle hire arrangements in place

Reassurance from Fleet Director

Good

Regular mobilisation meetings

Contingency plans developed

Depot to be in place to take delivery of vehicles before contract start

 

Jennifer Stevens

Vehicles delivered

Contract commencement

Monthly

 

No.

Current Rating

Target Rating

Risk

4

9

6

Financial

Control in place

Adequacy of controls

Required action/control

Responsible Officer

Success Factors

Date for Review

Three-staged process has refined costs

Risks have been identified and eliminated from the pricing

MTFS based on higher initial cost estimations

Local Authority comparator used to ensure costs realistic

Section 151 Officer engagement through the process

Indexation matched to the actual cost profile of bidders

Fair

Projections of indexation factored into costs

Review of position on staff pay rates to project increases

Jennifer Stevens

Contract cost as of April 2024 is within MTFS budget

 

Monthly

 

No.

Current Rating

Target Rating

Risk

5

6

3

Challenge

Control in place

Adequacy of controls

Required action/control

Responsible Officer

Success Factors

Date for Review

Contract extension within 50% of contract value

Agreed early in process before final tender

Legal advice sought throughout procurement

Consultants advise sought throughout procurement

Bid checked for compliance

Procurement oversight throughout

Good

Extension to be advertised

Ongoing dialogue with incumbent to manage process

 

Jennifer Stevens

Contract Awarded

No challenge received

Weekly until Feb 2023