The ACCC proposes to authorise joint procurement of waste collection services

The ACCC has released a draft determination proposing to grant authorisation to enable Surf Coast Shire Council, Golden Plains Shire Council and the Borough of Queenscliffe (the Applicants) to jointly tender and procure waste collection services.

Waste service suppliers will be able to tender to supply each council and/or groups of councils. The councils will enter into individual contracts with the successful tenderer/s.

The ACCC considers the joint tendering, procurement and management of waste collection services is likely to result in public benefits in the form of transaction cost savings, increased competition for service contracts with more joint tender participants than would be the case if Councils sought tenders on an individual basis, and improved efficiencies.

The ACCC considers that the conduct is likely to result in limited public detriment. All potential waste collection providers will continue to have opportunities to compete to tender to supply to one or more of the Applicants.

Due to the need for long term contracts to provide contractors with a sufficient return to underwrite investment, the ACCC proposes to grant authorisation for 11 years and 6 months.

The ACCC has also granted interim authorisation to enable the Applicants to commence the tender process while the ACCC is considering the substantive application. Interim authorisation does not extend to the Applicants entering into contracts following the joint tender process.

Further information about the ACCC's interim authorisation and draft determination is available on the ACCC public register at: Surf Coast Shire Council & Ors

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