Problem
The client was bidding for new contracts to provide integrated waste management services to Local Authorities and industry in the UK. It was desirable to quantify the performance of a number of management scenarios as part of an ongoing process of tender preparation for a 25 year municipal waste management contract.

Until now, there has been no means of pulling together data, on the performance of different management scenarios required as part of the bidding process, into one strategic modelling tool. This has resulted in assessment and preparation of proposals without any quantified analysis of long-term cost performance, and competitive advantage.

Objectives
To generate strategic waste system models of scenarios deemed feasible in the tender region for the long-term management of waste, so that performance (based on demonstration of 'Best Value', sustainability, and secure service provision) might be quantified over the duration of the contract.

Approach
Following initial data identification and collection, model schematics were generated, including the waste management options to be included within the tender. These were then populated with waste management handling and cost data (sourced from the client and in-house expertise), and solutions generated. The software outputs (waste flows and cumulative costs) were generated for the period of the contract, covering the existing contracted management situation as well as the scenarios proposed by the client.

In addition, the solver within the software was applied to determine 'least-cost' management scenarios at each stage. Projected increases in waste over the duration of the contract and assumptions concerning issues such as future levels of landfill tax were included within the model runs.

Outcome/Benefits
The client was informed of the relative performance of each proposal initially identified for inclusion within the tender. Analysis of the 'least-cost' management situation enabled the client to alter the proposals, in terms of proposed facility locations and waste throughputs to maximise efficiency. Analysis of position within the market, as a function of competing bidders, has enabled the client to target cost savings to improve competitiveness, and also to prioritise effort in the tender process.

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