Tendering for the scrap yard contract with supplementary questions

2.12  The Connétable of St. John of the Minister for Transport and Technical Services regarding tenders for the scrapyard contract:

Would the Minister inform Members whether Picot and Rouille Limited has been chosen to tender in the current round of tendering for the scrapyard contract? Would he also state whether all the preferred companies on the shortlist are locally based companies with experience in recycling?

Deputy K.C. Lewis (The Minister for Transport and Technical Services):

As Members will appreciate the questions being asked would require me to divulge information that is restricted by the tender process. With this in mind, I am not in a position to answer them at this stage. I can, however, give the Constable of St. John and the Assembly my assurance that the tender process being undertaken meets the appropriate States of Jersey procurement rules and pursues a number of other criteria such as employment of local staff. Leading practice in environmental and safety management and the requirement to provide a business model which offers best value to the States of Jersey. The Environment Scrutiny Panel has been fully briefed on the scrapyard contract progress to date and all the issues relating the existing and new contract. I do not believe that information relating to a particular company should be discussed in this public forum. I do not think it fair and reasonable to do so while my department is under strict rules of tendering. I am happy to provide further and the latest information to the Environment Scrutiny Panel, which will answer the question asked by the Constable of St. John .

1. The Connétable of St. John :

Given the Minister's answer, is it usual that when a company has been told that they are not going to be on the tender list, for the department to write an unsigned letter to Picot and Rouille - which I have a copy of here - saying that they are not on the tender list, but their name will be given to companies to ask if they wish to become junior partners in any deal? Can that be right for the Minister and his department to be using an odd way of approaching this situation, given these people are not on the tender list?

Deputy K.C. Lewis :

I am not sure of the letter to which the Constable refers. Hopefully he will furnish me with a copy. Obviously we would like any local companies employing local people to be involved in any new or further contracts. But nothing is guaranteed.

2. Deputy J.G. Reed of St. Ouen :

Would the Minister advise whether the shortlist of preferred companies is still to be finalised? Deputy K.C. Lewis :

The amount of companies invited to tender is 6, following first stage assessment.

The Deputy of St. Ouen :

Does that mean that the list has been finalised?

Deputy K.C. Lewis :

The final list, yes.

3. The Deputy of St. Ouen :

When will the tendering process be concluded?

Deputy K.C. Lewis :

I believe that will be in several months' time.

4. Deputy T.M. Pitman:

Maybe I have missed something, but with fairness to the Constable of St. John , the letter he refers to does seem to suggest a process that hardly seems appropriate or above board. Could the Minister clarify a little more in his answer?

Deputy K.C. Lewis :

I would need to see the letter.

5. The Deputy of St. Ouen :

Could I ask the Minister, would he reconsider including the local company on the tender shortlist?

Deputy K.C. Lewis :

The tendering process is a very rigorous process. Quite a few companies have applied. There have been local companies, there have been off-Island companies and there have been a combination of local and off-Island companies. As I say, there has been a very, very strict process and the list is there. The number is 6.

The Deputy Bailiff :

I think you were asked whether you were going to reconsider. Deputy K.C. Lewis :

That would not be in my remit.

6. The Deputy of St. Ouen :

I struggle to understand that, because this is a company that has been providing a service to this Island for 40 years [Approbation] and I would ask that the Minister would seek to find a solution that would allow this company to tender or take part in the tender process for the new contract.

Deputy K.C. Lewis :

The company tendered along with every other company. The tender process is very rigorous.

7. Senator L.J. Farnham :

Could the Minister give an example of why a company such as this would be excluded from the final tendering process?

Deputy K.C. Lewis :

Quite bluntly, they did not come up to the mark.

8. Senator S.C. Ferguson:

Would the Minister care to explain whether the tender was being handled through the Procurement Department or through his own department?

Deputy K.C. Lewis :

It was through a combination of the 2, I believe.

9. Senator S.C. Ferguson:

Supplementary, please, Sir. Does this mean in effect that the Procurement Department, who perhaps do not know the industry as well as the Minister's department, were in fact taking the lead on this contract?

Deputy K.C. Lewis :

The departments do have experts employed in the industry and it was a very rigorous process.

10. Deputy M.R. Higgins:

If I could just seek clarification on that, is the Minister trying to tell us that the State's Procurement Department have specialists in material handling and recycling?

Deputy K.C. Lewis :

Transport and Technical Services has experts in materials and recycling.

11. The Connétable of St. John :

I hope I can get given a bit of leeway given my colleagues have had considerably more bites at the cherry than I have. Given that there will be remedial work on this site, who will be undertaking the work? Also, of those companies tendering, are they all fully experienced in recycling? If not, how could they be on the tender list?

Deputy K.C. Lewis :

All the companies tendering are experienced in recycling. Any remediation work is under investigation.

12. The Connétable of St. John :

Sir, a supplementary on the final part? If the remedial work is currently under investigation and there is less or about 6 months left on the contract, when will this work be carried out and by whom?

Deputy K.C. Lewis :

The remediation inspection is under investigation as we speak. It may not be possible to use exactly the same site to start with. But we have to do exploratory works on the site to see if there is pollution there.

The Deputy Bailiff :

By whom? The question was by whom. Deputy K.C. Lewis :

I beg your pardon, Sir, T.T.S. officers.