The ACCC is proposing to grant authorisation to Council Solutions and a group of four Adelaide councils to jointly procure kerbside waste collection services.
The four councils, Adelaide, Charles Sturt, Marion and Port Adelaide Enfield, are seeking authorisation to appoint a single provider to supply kerbside waste collection services to residents in their municipalities.
“The ACCC considers that the four councils running a joint tender process is likely to result in transaction cost savings and other efficiencies that could be passed on to residents in lower costs or improved services,” ACCC Commissioner Sarah Court said.
“The ACCC also considers that the councils offering a single contract for a larger block of work is likely to encourage more competition from suppliers than if each council contracted separately.
“The ACCC is satisfied that the joint tender is unlikely to reduce competition to supply waste collection services in Adelaide in the longer term. While the proposed contract will cover around 180,000 rateable properties, unsuccessful tenderers will have sufficient opportunities to provide waste services in other parts of Adelaide and around Australia.”
The ACCC has issued a draft determination and expects to make a final determination in September.
The ACCC has also granted interim authorisation to allow the councils to commence the tender process with the aim of having a contract in place by May 2019. Interim authorisation does not extend to entering into any waste collection contracts. Contracts cannot be entered into unless the ACCC makes a final decision granting authorisation.