Supply of Natural Gas to Scottish Government
Single operator Framework for the Supply of Natural Gas and Associated Services to the Scottish Public Sector.
United Kingdom-Edinburgh: Natural gas
Section I: Contracting authority
I.1)Name and addresses
Victoria Quay, Leith
Contact person: Graeme Reid
Telephone: +44 1312447673
NUTS code: UKM
Address of the buyer profile: http://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA10482
I.2)Information about joint procurement
I.4)Type of the contracting authority
Section II: Object
Supply of Natural Gas
II.1.2)Main CPV code
II.1.3)Type of contract
The Scottish Ministers through the Collaborative and Scottish Government Procurement Division are seeking to establish a single operator framework for the Supply of Natural Gas and Associated Services to the Scottish Public Sector. The duration of the framework agreement will be for three years with options to extend for three further twelve month periods.
Please refer to section VI.3) Additional Information for eligible public bodies.
II.1.6)Information about lots
II.2.3)Place of performance
II.2.4)Description of the procurement:
The framework agreement is for the supply of Natural Gas.
The anticipated total consumption, based on the current Scottish Procurement framework agreement volumes, is 4.3 billion kWh per annum.
Scottish Procurement will operate a flexible purchasing strategy for public sector and third sector bodies under the Framework Agreement, predominantly sourced via the traded Natural Gas markets employing buys and sells on a forward and prompt basis via the Contractor’s trading desk, with forward purchasing anticipated at 30 months. The Contractor must be able to incorporate volumes sourced independently into the volumes of natural gas that are required to supply any designated framework users. Framework users will take delivery of natural gas on the basis of annual supply periods. Framework users may require certain ancillary services.
The Framework documentation incorporates a number of requirements relevant to and included so as to promote the potential for furthering environmental, renewable and robust energy supply initiatives. The measures it contains include that the supplier must be able to incorporate natural gas volumes sourced independently, with a view to incorporating, within the supply portfolio, sources consistent with the objectives of the Authority and the relevant Framework users (for example related to furthering duties on the framework users to further their sustainable procurement duty or duties under the Climate Change (Scotland) Act 2009), and to future-proof the agreement for policies proposed in the Scottish Government Draft Scottish Energy Strategy.
The period of the Framework Agreement shall be from 1.4.2019 to 31.3.2022 with options to extend for up to 3 years to 31.3.2025 in single year extensions.
Within these time periods, the Contractor will be expected to provide flexible purchasing trading services for the period 1.4.2019 to 31.3.2020, with the existing provider continuing to supply natural gas under the existing framework during this period.
For the avoidance of doubt the Contractor will not supply natural gas to public bodies and third sector bodies under the Framework Agreement during the period 1.4.2019 to 31.3.2020. The supply of natural gas to sites will commence on 1.4.2020.
For the remaining duration of the framework agreement the Contractor will provide flexible purchasing trading services and supply of natural gas to public sector and third sector bodies.
II.2.7)Duration of the contract, framework agreement or dynamic purchasing system
Three, one year contract extension options
II.2.10)Information about variants
II.2.11)Information about options
II.2.13)Information about European Union funds
Section III: Legal, economic, financial and technical information
III.1.1)Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers
ESPD Statement 4C.6: Tenderers will be required to hold a Natural Gas supply licence.
III.1.2)Economic and financial standing
Minimum level(s) of standards required:
ESPD Statement 4B.1.1: Bidders will be required to have a minimum “general” yearly turnover of 185 000 000 GBP for the last 3 years. The reason for this figure is that the services include a requirement to forward purchase significant volumes of Natural Gas, up to 2.5 years ahead, for which the customer shall not pay until soon after the point of consumption, creating exposure and financial capacity considerations justifying the turnover figure used. The figure is considered to be below 2 x the annual contract value of the contract.
ESPD Statement 4B.5.1 and 4B.5.2: It is a requirement that bidders hold or can commit to obtain prior to the commencement of any subsequently awarded contract the types of insurance indicated below:
— Employers Liability Insurance 5 000 000 GBP (in accordance with any legal obligation for the time being in force);
— Public Liability Insurance 10 000 000 GBP for any 1 incident and unlimited in total;
— Professional Indemnity Insurance 5 000 000 GBP for any 1 incident and unlimited in total.
III.1.3)Technical and professional ability
ESPD Statement 4D.1: Tenderers will be required, by the framework commencement date, to demonstrate that they have controls in place to mitigate against cyber-attacks and ensure continuity of service; this may be demonstrated by accreditation to applicable standards such as ISO 27001, ISO 22301, ISO/IEC 20000, Cyber Essentials or their equivalents.
ESPD Statement 4D.1: Tenderers will be required, by the framework commencement date, to have an effective Quality Management System in place; this may be demonstrated by accreditation to an applicable standard such as ISO 9001, or equivalent, or by submitting a copy of their own Quality Management System.
Section IV: Procedure
IV.1.1)Type of procedure
IV.1.3)Information about a framework agreement or a dynamic purchasing system
The framework is for 36 months with three one year extension options. For the first twelve months of the framework the supplier shall be required to deliver flexible trading services only, with supply of Natural Gas commencing thereafter. There is a significant amount of work associated with the transfer of customers to the framework agreement from the previous framework.
IV.1.8)Information about the Government Procurement Agreement (GPA)
IV.2.1)Previous publication concerning this procedure
IV.2.2)Time limit for receipt of tenders or requests to participate
IV.2.4)Languages in which tenders or requests to participate may be submitted:
IV.2.6)Minimum time frame during which the tenderer must maintain the tender
IV.2.7)Conditions for opening of tenders
Public Contracts Tender (PCS-T)
Section VI: Complementary information
VI.1)Information about recurrence
VI.2)Information about electronic workflows
The Framework Agreement will be available for use by the Scottish Ministers (including Agencies), Scottish Non-Departmental Public Bodies, offices in the Scottish Administration which are not ministerial offices, cross- border public authorities within the meaning of section 88(5) of the Scotland Act 1998, the Scotland Office, the Scottish Parliamentary Corporate Body, councils constituted under section 2 of the Local Government etc. (Scotland) Act 1994, Scottish Fire & Rescue Service, the Scottish Police Authority, Scottish health boards or special health boards, all NHS Scotland, The Integrated Joint Boards established further to the Public Bodies (Joint Working) Act 2014, bodies registered as social landlords under the Housing (Scotland) Act 2001, Student Loans Company Limited, the Forestry Commission, the Commissioner of Northern Lighthouse operating as the Northern Lighthouse Board, Equality and Human Rights Commission, Business Stream Ltd, the Business Gateway National Unit at the Convention of Scottish Local Authorities, further or higher education institutions being fundable bodies within the meaning of section 6 of the further and Higher Education (Scotland) Act 2005, any public body established by or under the Scotland Act 1998 or any Act of the Scottish Parliament, any association of or formed by one or more of the foregoing, bodies financed wholly or mainly by one or more of the foregoing, bodies subject to management supervision by one or more of the foregoing and bodies more than half of the board of directors or members of which, or, in the case of a group of individuals, more than half of those individuals, being appointed by one or more of the foregoing. In addition to the contracting authorities listed, the framework agreement will be available to charities entered on the Scottish Charity Register and voluntary organisations entered on the Membership Database of the Scottish Council for Voluntary Organisations.
Information about Scottish Public Bodies is available at:
Information about the Review of Public Procurement in Scotland and links to the other Centres of Expertise are available at:
The buyer is using PCS-Tender to conduct this ITT exercise. The Project code is 10406. For more information see: http://www.publiccontractsscotland.gov.uk/info/InfoCentre.aspx?ID=2343
The Contracting Authority does not intend to include a sub-contract clause as part of community benefits (as per Section 25 of the Procurement Reform (Scotland) Act 2014) in this contract for the following reason:
The supplies in question require licensed providers to deliver.
Community benefits are included in this requirement. For more information see: http://www.publiccontractsscotland.gov.uk/info/InfoCentre.aspx?ID=2361
A summary of the expected community benefits has been provided as follows:
Social considerations will be taken into account in this procurement. See procurement documents.
The successful Contractor is expected to work with the Authority to achieve, through the Contractor’s performance of the Framework Agreement and its call-off contracts, sustainable procurement goals deriving from the Procurement Reform (Scotland) Act 2014 (the Act), the Scottish Government’s Procurement Strategy and, as relevant, the Procurement Strategies of other Public Bodies using the Framework.
In terms of the Act, Community Benefits include benefits in the form of: training and recruitment opportunities; the availability of sub-contracting opportunities and other benefits that improve the economic, social or environmental wellbeing within a public body’s area whilst a contract is being performed.
Victoria Quay, Leith
Telephone: +44 1312447673Internet address: http://www.scotland.gov.uk
Scottish Government will incorporate the required minimum 10 day standstill period commencing the day after information on the award is communicated to tenderers. The Public Contract (Scotland) Regulations 2015 provide for aggrieved parties who have been harmed or risk being harmed by breach of the rules to take legal action. Any such action must be brought within the applicable limitation period.
VI.5)Date of dispatch of this notice: