In this case study, the Council was in the opening stages of a competitive dialogue procurement for a complex residual waste treatment solution. A basic cost model (reference case) had been already been developed by the project team, and they decided to use the CH2 system to validate the model – the outcome was wholly successful.
Unlike the cost models often employed on similar projects, the the CH2 system takes a “holistic” view of a Council’s waste management operation from collection, transfer and processing all the way through to final markets, or disposal. Using this approach, it’s possible to explore the full impact and inter-relationship of any changes in existing waste streams with proposed collection regimes and processing facilities.
The system is designed to compare multiple options, and explore a range of sensitivities (tonnages, indexation, costs etc.) to ensure that the impact of potential decisions made in one part of the service are fully understood and can be followed through more easily and more effectively than is usually possible.
The validation process provided several valuable insights for the project team regarding project costs and sensitivities which were not apparent from their basic cost model. The project led to a substantial update of their reference case, which provided the Council with an even more robust position in detailed negotiations with suppliers as part of the procurement process.