Development of a Strategic Heat Network in London

Development of a Strategic Heat Network in London

The procurement may include (without limitation) the design and build of a heat distribution network from an existing landfill gas plant (LFG) located on private third party land and across to the Felnex Development Site.

United Kingdom-Sutton: District heating

2015/S 214-391734

Contract notice – utilities

Services

Directive 2004/17/EC

Section I: Contracting entity

I.1)Name, addresses and contact point(s)

London Borough of Sutton
St Nicholas Way
SM1 1EA Sutton
UNITED KINGDOM
Telephone: +44 2087705000
E-mail: luke.thomas@sutton.gov.uk

Internet address(es):

General address of the contracting entity: http://sutton.gov.uk

Electronic access to information: http://www.londontenders.org

Electronic submission of tenders and requests to participate: http://www.londontenders.org

Further information can be obtained from: The above mentioned contact point(s)

Specifications and additional documents (including documents for a dynamic purchasing system) can be obtained from: The above mentioned contact point(s)

Tenders or requests to participate must be sent to: The above mentioned contact point(s)

I.2)Main activity

Production, transport and distribution of gas and heat

I.3)Contract award on behalf of other contracting entities

The contracting entity is purchasing on behalf of other contracting entities: no

Section II: Object of the contract

II.1)Description

II.1.1)Title attributed to the contract by the contracting entity:

Sutton Decentralised Energy Network.

II.1.2)Type of contract and location of works, place of delivery or of performance

Services
Service category No 12: Architectural services; engineering services and integrated engineering services; urban planning and landscape engineering services; related scientific and technical consulting services; technical testing and analysis services
Main site or location of works, place of delivery or of performance: London Borough of Sutton.

NUTS code UKI22

II.1.3)Information about a public contract, a framework agreement or a dynamic purchasing system (DPS)

The notice involves a public contract
II.1.4)Information on framework agreement

II.1.5)Short description of the contract or purchase(s):

The Authority is seeking to appoint 1 or more contractors (or a consortium of contractors) to support the development of a strategic heat network in South London (the Sutton Decentralised Energy Network (SDEN)).
The procurement may include (without limitation) the design and build of a heat distribution network from an existing landfill gas plant (LFG) located on private third party land and across to the Felnex Development Site.
The procurement may also include (without limitation) the operation, maintenance, repair and replacement services in respect of the SDEN and plant and equipment on the Felnex Development Site, including (but not limited to) an energy centre (boiler plant and thermal store), distribution network and metering interfaces (including residential heating interface units).
The Felnex Development Site will be a new mixed use, primarily residential, development comprising but not limited to approximately 725 homes and a supermarket located in Hackbridge within the London Borough of Sutton for which it is anticipated construction is to commence in the next year.
The Authority welcomes tender submissions from a wide variety of providers across the market to procure the most economically advantageous tender(s).
In order to achieve this, the procurement has been divided into 3 Lots which relate to the Authority’s works requirements; design and build of the network from the LFG to the energy centre on the Felnex Development Site (Lot 1), operational, maintenance and repair/replacement service requirements (Lot 2) and a combined Lot for the design, build, operational, maintenance and repair/replacement service requirements (Lot 3). Participants may choose which Lot they wish to bid for.
Please note that Participants may only bid for 1 Lot (whether Lot 1, Lot 2 or Lot 3) and the Authority does not envisage accepting variant bids within a Lot. Please see Question II below for further details on the Lots. It is anticipated that the Authority may either award separate contracts to the successful Participants for Lots 1 and 2 (respectively) or appoint the successful Participant for Lot 3 to undertake the works and the services.
The Authority is procuring this project on behalf of itself and a wholly owned company of the Authority which the Authority envisages setting up during the procurement process (the ‘ESCo’). It is anticipated that the ESCo shall enter into the contract(s) with the successful Participant(s).
However, the Authority reserves the right to adopt any form of alternative contract structure or financing model that best meets its needs.
All interested parties are required to obtain, complete and return a Pre—Qualification Questionnaire (‘PQQ’) from the contact point at Section I.1). PQQ responses will be evaluated
in accordance with the criteria set out in the Authority’s Evaluation Methodology provided to Participants as part of the PQQ documentation.

II.1.6)Common procurement vocabulary (CPV)

09323000, 45251000, 45232140, 45251250, 44163121, 71000000, 71300000, 71314200, 71314000, 45259300, 45259000, 50000000, 70332000,50531100, 50500000, 50510000, 50511000, 50511100, 50720000, 50512000, 09324000

II.1.7)Information about Government Procurement Agreement (GPA)

The contract is covered by the Government Procurement Agreement (GPA): yes

II.1.8)Information about lots

This contract is divided into lots: yes
Tenders may be submitted for one lot only

II.1.9)Information about variants

Variants will be accepted: no
II.2)Quantity or scope of the contract

II.2.1)Total quantity or scope:

The Authority anticipates that there may be additional phases of expansion to the SDEN network over time and the likelihood, scale and timing of any such expansion may be discussed in the procurement process.
Any such expansion may include, without limitation, the provision for the generation and supply of heat and/or power to residential and/or commercial tenants and/or the National Grid.
The potential for the heat network to receive heat from additional heat sources and/or to provide heat to additional third party users may also be explored during negotiation.
The Authority anticipates exercising its Prudential Borrowing powers to raise any necessary finance required by the Participants for any necessary capex investment for the provision of the works and/or the operations and services.
In respect of Lot 2 (and the services elements of Lot 3) the Authority envisages a contract period of approximately 5 years with an option to extend by up to a further 5 years, but the actual period will be determined by best value considerations during the procurement process.
For the avoidance of doubt, a 5 plus 5 years duration is indicative only and is not intended to specify the maximum or minimum length of the contract(s).
The Authority anticipates providing a conceptual design for the Project and Participants for Lots 1 and 3 will be required to satisfy themselves as to its accuracy and suitability for the Project before progressing through to a fully detailed design that meets the Authority’s requirements, including technical specifications as set out in the Invitation to Negotiate (ITN) documents.
In addition, as a matter of flexibility, the Authority may wish to include some additional ancillary services which do not fall within the defined Lots but which may be reasonably considered ancillary thereto. Any such ancillary services will be explored with the Participants during the procurement process.

II.2.2)Information about options

Options: yes
Description of these options: The Authority will discuss with Participants during the procurement procedure the possibility of being granted option(s) to extend the contract period for a period of up to 5 years.

II.2.3)Information about renewals

This contract is subject to renewal: no
II.3)Duration of the contract or time limit for completion

Information about lots

Lot No: 1 Lot title: Works

1)Short description:

As set out above, the Authority welcomes tender submissions from a wide variety of providers across the market to procure the most economically advantageous tender(s).
In order to achieve this, the procurement has been divided into 3 Lots which relate to the Authority’s works requirements; design and build of the network from the LFG to the energy centre on the Felnex Development Site (Lot 1), operational, maintenance and repair/replacement service requirements (Lot 2) and a combined Lot for the design, build, operational, maintenance and repair/replacement service requirements (Lot 3).
Lot 1 relates to the Authority’s works requirements.
The Authority is seeking to appoint a contractor (or a consortium of contractors) to support the development of a strategic heat network in South West London (the Sutton Decentralised Energy Network (SDEN)).
The Lot may include (without limitation) the design and build of a heat distribution network from an existing landfill gas plant (LFP) to the Felnex Development Site. Further details are set out below and in the pre—qualification document.

2)Common procurement vocabulary (CPV)

45251000, 45232140, 45251250, 09323000, 09324000, 44163121, 71000000, 71300000

3)Quantity or scope:

It is anticipated that Lot 1 shall include (but is not limited to):
1. Design and build of the distribution network from the existing LFG site to the new energy centre on the Felnex Development Site.
2. Design and build of the connection interface at either end of the distribution network. This may include (but is not limited to) the mechanical works incorporating the installation of a heat exchanger, conventional plantroom pipework, valves and other pipework components. There may be a small element of electrical and controls wiring.
3. During construction of the network the Lot 1 contractor will be required to manage the technical, construction and site interfaces with respect to their works with the owner of the LFG and the developer of the Felnex site.
It is anticipated that the following will not form part of Lot 1:
Modifications to the LFG engines to enable heat recovery from these units will be carried out by the owner of the LFG.
Design and build works at the Felnex Development Site will be carried out by the developer of the Felnex Development Site, this may include (but is not limited to) the energy centre, site network, heat interface units and metering and billing hardware.
However, for the avoidance of doubt, the installation of the proposed heat interconnector to the energy centre and associated connection to the energy centre system (as described above) is anticipated to be within the scope of Lot 1.

Lot No: 2 Lot title: Services

1)Short description:

Lot 2 relates to the Authority’s service requirements. The Lot may include (without limitation)
the operation, maintenance and repair/replacement of:
a heat distribution network from an existing landfill gas plant (LFP) to the Felnex Development Site.
Energy centre and distribution network on the Felnex Development Site
Further details are set out below and in the pre-qualification document.

2)Common procurement vocabulary (CPV)

71314200, 71314000, 45259300, 45259000, 50000000, 70332000, 50531100, 50500000, 50510000, 50511000, 50511100, 50512000, 50720000,09323000, 09324000, 44163121, 71000000, 71300000

3)Quantity or scope:

It is anticipated that Lot 2 shall include (but is not limited to):
1. Operation, maintenance and repair/replacement services with respect to:
a. The distribution network from the existing LFG site to the new energy centre on the Felnex Development Site which may include a heat exchanger interface at the LFG site.
b. New energy centre on the Felnex Development Site containing boilers and a thermal store (which, for the avoidance of doubt, will be built by the developer).
c. The on-site distribution network to the residential and commercial buildings (which, for the avoidance of doubt, will be built by the developer).
d. Internal distribution networks up to and including the heat interface units and meters (which, for the avoidance of doubt, will be built by the developer).
2. Planned and reactive maintenance of the above plant and where necessary repairs and replacement.
3. Performance monitoring and reporting.
4. Optimisation of plant operation to maximise the use of waste heat sources and minimise the use of heat required from the back up gas fired boilers
5. Collation of meter readings for passing to the Authority’s ESCo.
6. Customer interface with the Authority with respect to operational issues.
7. Customer interface with residential and commercial consumers when visiting and working in properties
8. The Lot 2 contractor will need to ‘take over’ the assets constructed by the Lot 1 contractor and the developer and follow the procedures set out in the tender documents to achieve this.
It is anticipated that the following will not form part of Lot 2:
The Authority’s ESCo and/or the Authority anticipates carrying out the billing and customer service function.

Lot No: 3 Lot title: Combined Works and Services

1)Short description:

It is anticipated that Lot 3 shall be a combination of the works in Lot 1 and the operations and services in Lot 2 above. The Lot may include (without limitation):
The design, build, operation, maintenance and repair/replacement of a heat distribution network from an existing landfill gas plant (LFP) to the Felnex Development Site.
Operation, maintenance and repair/replacement of an energy centre and distribution network on the Felnex Development Site.
Further details are set out below and in the pre-qualification document.

2)Common procurement vocabulary (CPV)

09323000, 45251000, 45232140, 45251250, 09324000, 44163121, 71000000, 71300000, 71314200, 71314000, 45259300, 45259000, 50000000,70332000, 50531100, 50500000, 50510000, 50511000, 50511100, 50512000, 50720000

3)Quantity or scope:

Please see the scope for Lots 1 and 2 above.

Section III: Legal, economic, financial and technical information

III.1)Conditions relating to the contract

III.1.1)Deposits and guarantees required:

The Authority reserves the right to require deposits, parent company guarantees, collateral warranties, bonds, or other forms of appropriate security. Further details will be available in the tender documents.

III.1.2)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:

As specified in the Invitation to Negotiate.

III.1.3)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:

Requests to participate will be accepted from companies or from groupings of economic operators (consortia). In the event of a successful consortium bid, the Authority may specify that the consortium member takes a particular legal form and/or require that a single consortium member takes primary liability or that each member undertakes joint and several liability irrespective of the legal form adopted. Where a subsidiary company is used, the ultimate parent company may be required to provide a guarantee in respect of the performance of the contract by the subsidiary before acceptance.

III.1.4)Other particular conditions:

The performance of the contract is subject to particular conditions: yes
Description of particular conditions: As specified in the Invitation to Negotiate.
III.2)Conditions for participation

III.2.1)Personal situation of economic operators, including requirements relating to enrolment on professional or trade registers

Information and formalities necessary for evaluating if the requirements are met: As set out in the pre-qualification questionnaire.

III.2.2)Economic and financial ability

Information and formalities necessary for evaluating if the requirements are met: As set out in the pre-qualification questionnaire.

III.2.3)Technical capacity

Information and formalities necessary for evaluating if the requirements are met: As set out in the pre-qualification questionnaire.
III.2.4)Information about reserved contracts
III.3)Conditions specific to services contracts

III.3.1)Information about a particular profession

Execution of the service is reserved to a particular profession: no

III.3.2)Staff responsible for the execution of the service

Legal persons should indicate the names and professional qualifications of the staff responsible for the execution of the service: yes

Section IV: Procedure

IV.1)Type of procedure

IV.1.1)Type of procedure

Negotiated
IV.2)Award criteria

IV.2.1)Award criteria

The most economically advantageous tender in terms of the criteria stated in the specifications or in the invitation to tender or to negotiate

IV.2.2)Information about electronic auction

An electronic auction will be used: no
IV.3)Administrative information

IV.3.1)File reference number attributed by the contracting entity:

9ZAJ-E7GG6F

IV.3.2)Previous publication(s) concerning the same contract

no
IV.3.3)Conditions for obtaining specifications and additional documents

IV.3.4)Time limit for receipt of tenders or requests to participate

2.12.2015 – 12:00

IV.3.5)Language(s) in which tenders or requests to participate may be drawn up

English.
IV.3.6)Minimum time frame during which the tenderer must maintain the tender
IV.3.7)Conditions for opening of tenders

Section VI: Complementary information

VI.1)Information about recurrence

This is a recurrent procurement: no

VI.2)Information about European Union funds

The contract is related to a project and/or programme financed by European Union funds: no

VI.3)Additional information:

The Authority is seeking offers for this contract following the negotiated procedure pursuant to the Utilities Contracts Regulations 2006.
All interested Participants are required to complete and return a Pre—Qualification Questionnaire (PQQ).

The PQQ and related documents are available from www.londontenders.org as given in point I.1) above.

Requests to participate must be made by completion and return of the PQQ by the date and time specified in point IV.3.4) and in the manner prescribed electronically via www.londontenders.org and in accordance with the instructions set out in the PQQ and related documents.

Completed PQQ responses submitted after the deadline may not be considered and only those Participants returning the PQQ by the date and time specified in point IV.3.4) will be deemed to have made an expression of interest.
The Authority anticipates inviting 4 Participants per Lot to the Invitation to Negotiate (ITN) stage. Further details are set out in the PQQ documentation.
Please note that all dates time periods and figures in relation to values and volumes specified in this notice and the tender documents are approximate only and the Authority reserves the right to change any or all of them.
Participants are advised that the Authority is subject to the Freedom of Information Act 2000 (the Act).
If a Participant considers that any of the information supplied as part of this procurement procedure should not be disclosed because of its commercial sensitivity, confidentiality or otherwise, they must, when providing this information, clearly identify the specific information they do not wish to be disclosed and clearly specify the reasons for its sensitivity.
The Authority shall take such statements into consideration in the event that it receives a request pursuant to the Act which relates to the information provided by the interested party.
However, if the information is requested the Authority may be forced to disclose such documentation, irrespective of a Participant’s wishes.
Please note, it is not sufficient to include a statement of confidentiality encompassing all the information provided in the response.
It is not anticipated there are any TUPE requirements associated with this contract (on initial entry or on expiry/early termination).
The Authority will keep this position under review and discuss with the Participants during the procurement process.
Please note that CPV codes included in this notice are not exhaustive lists.
The Authority shall not be responsible for any costs, charges or expenses incurred by Participants and accepts no liability for any costs, charges or expenses, irrespective of the outcome of the competition, or if the competition is cancelled or postponed.
The Authority reserves the right to amend the scope of the Lots, not award any or part of this contract and/or to abandon this procurement at any stage.
Section 1.3 — The Authority is procuring this project on behalf of itself and a wholly owned company of the Authority which the Authority envisages setting up during the procurement process (the ‘ESCo’). It is anticipated that the ESCo shall enter into the contract(s) with the successful Participant(s). However, the Authority reserves the right to adopt any form of alternative contract structure or financing model that best meets its needs.
Please note the deadline for submission of questions with regards to this tender is 24.11.2015 (6 working days prior to the Time Limit for Receipt at IV.3.4).

VI.4)Procedures for appeal

VI.4.1)Body responsible for appeal procedures

Please see VI 4.2)

VI.4.2)Lodging of appeals

Precise information on deadline(s) for lodging appeals: In accordance with the Utilities Contracts Regulations 2006.
VI.4.3)Service from which information about the lodging of appeals may be obtained

VI.5)Date of dispatch of this notice:

2.11.2015

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