Social Procurement Case Study: Mornington Peninsula Shire Waste Management Contract

In 2010, the Mornington Peninsula Shire Council (a municipality located on Melbourne’s urban/rural fringe) went out to tender, seeking a supplier of waste management services.

Having previously had a social enterprise deliver part of this contract, council wanted to continue to enjoy the community benefits that social enterprise provides. As a process, council ensured that they complied with legislation by being open and transparent and ensuring that the successful head contractor had options in choosing to work with a social enterprise. It was a two stage process:

1. Council issued a request for information to determine the number of social enterprises in the municipality interested in operating a transfer station and recycle shop; based on the response they established a panel of social enterprises.

   Download the Registration of Interest Form that was used.
    

2. When the Shire tendered for its waste management contract, one of the mandatory contractual requirements of the Request for Tender was that the successful tenderer would be required to establish a sub-contracting relationship with one or more of the panel members to operate a recycle shop.

   See the Relevant Clause used in the contract specification for the operation of the Shire's Landfill, Transfer Stations and waste hoppers.

   Also, the contract 'Evaluation Criteria' reflected the Shire's desire that the resales centres be operated by a 'Not For Profit' organisation with an attribute associated to "Community Benefits".

The Shire did not warrant the suitability of the social enterprises listed, requiring the contractor to undertake its own due diligence.

Result

The successful contractor has engaged a social enterprise to operate the Mornington transfer station and recycle shop, which is creating employment for disadvantaged members of the local area.