Property Management Services for Thames Water

Property Management Services for Thames Water

The scope of this procurement is for the provision of specialist, property management and portfolio development services aligned to the Thames Water property portfolio and wider Thames Water Group portfolio.

United Kingdom-Reading: Real estate services

2020/S 052-125027

Contract notice – utilities

Services

Legal Basis:

Directive 2014/25/EU

Section I: Contracting entity

I.1)Name and addresses

Official name: Thames Water Utilities Ltd
Postal address: Procurement Support Centre – 6th Floor RBH, C/O Mail Room, Rose Kiln Court
Town: Reading
NUTS code: UKJ11
Postal code: RG2 0BY
Country: United Kingdom
E-mail: procurement.support.centre@thameswater.co.uk

Internet address(es):Main address: www.thameswater.co.uk

I.2)Information about joint procurement

I.3)Communication

Access to the procurement documents is restricted. Further information can be obtained at: https://www.thameswater.co.uk/procurement
Additional information can be obtained from the abovementioned address
Tenders or requests to participate must be submitted electronically via: https://www.thameswater.co.uk/procurement
Tenders or requests to participate must be submitted to the abovementioned address

I.6)Main activity

Water

Section II: Object

II.1)Scope of the procurement

II.1.1)Title:

Property Management Services

Reference number: FA1436

II.1.2)Main CPV code

70000000

II.1.3)Type of contract

Services

II.1.4)Short description:

Thames Water wishes to award one or more framework agreements to supplier(s) capable of providing property management services to the Thames Water Group, across our entire business footprint and more widely if required. This could include (but is not limited to) estates and rents management, long term value creation, disposals, acquisitions and development planning relative to the Thames Water Group and Thames Tideway Tunnel property portfolios. Additionally we are seeking the provision of business rates advisory and appeal services.

Note that your client may be Thames Water Utilities Limited or another company within the Kemble Water group structure.

II.1.5)Estimated total value

Value excluding VAT: 30 000 000.00 GBP

II.1.6)Information about lots

This contract is divided into lots: yes
Tenders may be submitted for all lots
Maximum number of lots that may be awarded to one tenderer: 3
The contracting authority reserves the right to award contracts combining the following lots or groups of lots:

Lots 1, 2 and 3

II.2)Description

II.2.1)Title:

TWUL Assets – Estates Management, Land Sales, Development and Planning

Lot No: 1

II.2.2)Additional CPV code(s)

70110000
70111000
70112000
70120000
70121000
70121100
70121200
70122000
70122100
70122110
70122200
70122210
70123000
70123100
70123200
70300000
70310000
70320000
70321000
70322000
70330000
70331000
70331100
70332000
70332100
70332200
70332300
70333000

II.2.3)Place of performance

NUTS code: UKJ
NUTS code: UKI
Main site or place of performance:

Whole of Thames Water Region

II.2.4)Description of the procurement:

The scope of this procurement is for the provision of specialist, property management and portfolio development services aligned to the Thames Water property portfolio and wider Thames Water Group portfolio. The Thames Water property estate includes c. 5 300 sites across 16 000 acres of which c. 60 % is in the Greenbelt or Metropolitan open land (MOL). In addition, we have a diverse range of assets that present an opportunity for Thames Water to generate additional income streams and value.

This lot is split in to the following sub-sections:

— lot 1 (a) TWUL assets — land sales, development and development planning;

— lot 1 (b) TWUL assets — estate management and planning.

These sub-sections will be awarded as a single lot but have been split out for the pupose of PQQ and ITN as the commercial and contractual models are very different.

Activities that we expect to be supported by this procurement could include (but are not limited to):

Lot 1 (a):

— Land disposals and sales

— Long term value creation (yield opportunities)

— Acquisitions

— Valuation support and project appraisal

— Strategic initiatives

— Planning and development planning

— Internal asset transfers

— Affordable housing

— Marriage value opportunities

— Alternative land use

— Accommodation strategy

— Aggregates

— Advertising

— Compulsory purchase advice

— Development consent order (DCO) advice

— Dedicated property director support

— Identification and the potential management of other potential income streams

— Interaction and engagement with Thames Water and its key stakeholder groups

Lot 1 (b):

— Estates management

— Rents management (including renewals)

— Lease renewals

— Property maintenance activities

— Service charge management

— Statutory compliance

— Accounting services and tax compliance

— Town planning

— Loss of business claims

— Interaction and engagement with Thames Water and its key stakeholder groups

Successful organisations should have a proven track record in property management and portfolio development services with an experienced, dedicated workforce to deliver the activities mentioned above. We expect successful organisations to operate as an integrated member of the Thames Water Property team, providing services and presence within the Thames Water offices in Reading and the Thames Tideway offices in central London (recommend 2 days per week unless agreed otherwise).

Additionally, Thames Water are seeking suppliers that will provide an innovative contribution towards our key areas of development:

— Maximising the value and revenues from our property portfolio over the next 10 years and beyond

— Building and identifying a sustainable strategy and pipeline of opportunity to support a 10-year (and beyond) plan

— Identifying and validating untapped, potential income streams and value creation within the Thames Water portfolio

For the avoidance of doubt the scope for this procurement does not include facilities management.

Scope detail for this LOT has been included in our PQQ documentation.

II.2.5)Award criteria

Price is not the only award criterion and all criteria are stated only in the procurement documents

II.2.6)Estimated value

Value excluding VAT: 22 000 000.00 GBP

II.2.7)Duration of the contract, framework agreement or dynamic purchasing system

Duration in months: 120
This contract is subject to renewal: yes
Description of renewals:

Any agreement awarded would be for an initial duration of 5 years with options to extend up to a maximum of 10 years in total.

II.2.9)Information about the limits on the number of candidates to be invited

Envisaged minimum number: 5
Maximum number: 8
Objective criteria for choosing the limited number of candidates:

We expect to shortlist candidates during an ITN process which will see minimum 5 (maximum 8) candidates advancing from our PQQ.

II.2.10)Information about variants

Variants will be accepted: yes

II.2.11)Information about options

Options: yes
Description of options:

Any agreement awarded would be for an initial duration of 5 years with options to extend up to a maximum of 10 years in total. Performance against service levels will be measured and reviewed with appropriate remedies.

II.2.12)Information about electronic catalogues

II.2.13)Information about European Union funds

The procurement is related to a project and/or programme financed by European Union funds: no
II.2.14)Additional information
II.2)Description

II.2.1)Title:

TTT Assets — Land Sales, Development and Development Planning

Lot No: 2

II.2.2)Additional CPV code(s)

70110000
70111000
70112000
70120000
70121000
70121100
70121200
70122000
70122100
70122110
70122200
70122210
70123000
70123100
70123200
70300000
70310000
70320000
70321000
70322000
70330000
70331000
70331100
70332000
70332100
70332200
70332300
70333000

II.2.3)Place of performance

NUTS code: UKJ
NUTS code: UKI
Main site or place of performance:

Whole of Thames Water Region

II.2.4)Description of the procurement:

The scope of this procurement is for the provision of specialist, property management and portfolio development services aligned to the Thames Tideway Tunnel property portfolio.

The Thames Tideway Tunnel will be a 16 mile tunnel running mostly under the tidal section of the River Thames through central London. Started in 2016, construction of the Thames Tideway Tunnel aimed to take seven to 8 years with all work completed by 2024. The sites acquired by Thames Water to enable the construction of the Thames Tideway Tunnel were mostly substantial residential development sites. These land deals included high market values and, in some cases, included complex pre-emption, buy back and overage options.

The key outcomes of this engagement will be to ensure (from a property perspective) that Thames Water can fully comply with ET06 and ET07 and that hand back and disposal, where relevant, of sites can be achieved by the necessary dates and that the operation of Public Realm sites are returned to Thames Water as agreed.

Full detail of ET06 and ET07 can be found in OFWAT’s final determination paper for Thames Tideway Tunnel at the following link:

https://www.ofwat.gov.uk/wp-content/uploads/2019/12/PR19-final-determinations-Thames-Water-Thames-Tideway-Tunnel-performance-commitments-additional-information-appendix.pdf

In total there are c.27 sites made up of c.88 parcels of land, this includes five principle disposal sites and c.14 areas of Public Realm.

Activities that we expect to be supported by this procurement could include (but are not limited to):

— Maximising value creation

— Land disposals and sales

— Long term value creation (yield opportunities)

— Acquisitions

— Valuation support and project appraisal

— Public realm (Thames Tideway Public Realm comprises of a handful of very prominent and iconic sites for public use)

— Specific lease agreement management (see PQQ documentation for more information)

— Rent and licence fee reviews

— Strategic initiatives

— Planning and development planning

— Internal asset transfers

— Alternative land use

— Compulsory purchase advice

— Identifying other potential income stream

— Interaction and engagement management with key stakeholders such as GLA, PLA, EA etc.

Successful organisations should have a proven track record in property management and portfolio development services with an experienced, dedicated workforce to deliver the activities mentioned above. We expect successful organisations to operate as an integrated member of the Thames Water Property team, providing services and presence within the Thames Water offices in Reading and the Thames Tideway offices in central London (recommend 2 days per week unless agreed otherwise).

For the avoidance of doubt the scope for this procurement does not include facilities management.

Thames Tideway Tunnel property portfolio is broken down as follows:

— 5 principal disposal sites where our requirement is to carry out disposal within a mandated timescale whilst maximizing value in line with our obligations under ET06 and ET07 regulations.

— 14 public realm sites that we wish to explore revenue opportunities for, including community use, reputational retention and value creation.

— 8 Various other hand back sites where we must again comply with out ET06 and ET07 obligations whilst considering maximised value and retention options to Thames Water.

Scope detail for this lot has been included in our PQQ documentation.

II.2.5)Award criteria

Price is not the only award criterion and all criteria are stated only in the procurement documents

II.2.6)Estimated value

Value excluding VAT: 4 000 000.00 GBP

II.2.7)Duration of the contract, framework agreement or dynamic purchasing system

Duration in months: 120
This contract is subject to renewal: yes
Description of renewals:

Any agreement awarded would be for an initial duration of 5 years with options to extend up to a maximum of 10 years in total.

II.2.9)Information about the limits on the number of candidates to be invited

Envisaged minimum number: 5
Maximum number: 8
Objective criteria for choosing the limited number of candidates:

We expect to shortlist candidates during an ITN process which will see minimum 5 (maximum 8) candidates advancing from our PQQ.

II.2.10)Information about variants

Variants will be accepted: yes

II.2.11)Information about options

Options: yes
Description of options:

Any agreement awarded would be for an initial duration of 5 years with options to extend up to a maximum of 10 years in total. Performance against service levels will be measured and reviewed with appropriate remedies.

II.2.12)Information about electronic catalogues

II.2.13)Information about European Union funds

The procurement is related to a project and/or programme financed by European Union funds: no
II.2.14)Additional information
II.2)Description

II.2.1)Title:

Business Rates

Lot No: 3

II.2.2)Additional CPV code(s)

70300000
70330000
70332200

II.2.3)Place of performance

NUTS code: UKI
NUTS code: UKJ
Main site or place of performance:

Whole of TW Region.

II.2.4)Description of the procurement:

Thames Water business rates are c. GBP 119 million per annum (Water is c GBP 82 million and Waste is c GBP 37 million). Candidates will need to have relevant experience and a dedicated resource to provide a comprehensive Rating consultancy service for the portfolio.

The successful organisation will deliver advice and support over the term on appeal strategy, and will maximise opportunities by managing appeal proceedings, including liaising with internal and external parties as necessary.

Activities that we expect to be supported by this procurement could include (but are not limited to):

— Rates accounting services

— Proactive asset survey reviews

— Rates billing payments

— Valuation office notice appeals

— Non-domestic rates consultancy

— Central rating list assessment

— Monthly reporting and input into budget forecasts and re-forecasts

The successful organisation should have a proven track record in ratings consultancy and an experienced, identified workforce to deliver the activities mentioned above.

The liability for rates is made up of over 430 rating hereditaments, plus a separate rateable value of GBP 158 million on the central rating list. The total rateable value for all the sites amounts to over GBP 234 million, including the central list sum, with rates payable during 2019/20 in excess of GBP 119 million.

Scope detail for this lot has been included in our PQQ documentation.

II.2.5)Award criteria

Price is not the only award criterion and all criteria are stated only in the procurement documents

II.2.6)Estimated value

Value excluding VAT: 4 000 000.00 GBP

II.2.7)Duration of the contract, framework agreement or dynamic purchasing system

Duration in months: 120
This contract is subject to renewal: yes
Description of renewals:

Thames Water envisages that the contract will be awarded for an initial terms of 5 years with options to extend to a maximum duration of 10 years.

II.2.9)Information about the limits on the number of candidates to be invited

Envisaged minimum number: 5
Maximum number: 8
Objective criteria for choosing the limited number of candidates:

We expect to shortlist candidates during an ITN process which will see minimum 5 (maximum 8) candidates advancing from our PQQ

II.2.10)Information about variants

Variants will be accepted: yes

II.2.11)Information about options

Options: yes
Description of options:

Any agreement awarded would be for an initial duration of 5 years with options to extend up to a maximum of 10 years in total. Performance against service levels will be measured and reviewed with appropriate remedies.

II.2.12)Information about electronic catalogues

II.2.13)Information about European Union funds

The procurement is related to a project and/or programme financed by European Union funds: no
II.2.14)Additional information

Section III: Legal, economic, financial and technical information

III.1)Conditions for participation

III.1.1)Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers

List and brief description of conditions:

As detailed in the PQQ

III.1.2)Economic and financial standing

Selection criteria as stated in the procurement documents

III.1.3)Technical and professional ability

Selection criteria as stated in the procurement documents

III.1.4)Objective rules and criteria for participation

List and brief description of rules and criteria:

As detailed in Section VI.3 and PQQ.

III.1.5)Information about reserved contracts

III.1.6)Deposits and guarantees required:

Bonds and/or parent company guarantees of performance and financial standing may be required.

III.1.7)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:

Specified in the invitation to negotiate.

III.1.8)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:

Consortia may be required to form a legal entity prior to award.

III.2)Conditions related to the contract
III.2.1)Information about a particular profession

III.2.2)Contract performance conditions:

As detailed in the ITN.

III.2.3)Information about staff responsible for the performance of the contract

Section IV: Procedure

IV.1)Description

IV.1.1)Type of procedure

Negotiated procedure with prior call for competition

IV.1.3)Information about a framework agreement or a dynamic purchasing system

The procurement involves the establishment of a framework agreement
Framework agreement with several operators
Envisaged maximum number of participants to the framework agreement: 5
In the case of framework agreements, provide justification for any duration exceeding 8 years:

The agreement being established and the activity under it will be managed under the non-regulated part of our business. Additionally we require the ability to cover two full AMPs in order to meet our business objectives, which we have agreed with our legal function.

IV.1.4)Information about reduction of the number of solutions or tenders during negotiation or dialogue
IV.1.6)Information about electronic auction

IV.1.8)Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: no
IV.2)Administrative information
IV.2.1)Previous publication concerning this procedure

IV.2.2)Time limit for receipt of tenders or requests to participate

Date: 24/03/2020
Local time: 12:00
IV.2.3)Estimated date of dispatch of invitations to tender or to participate to selected candidates

IV.2.4)Languages in which tenders or requests to participate may be submitted:

English

IV.2.6)Minimum time frame during which the tenderer must maintain the tender

Duration in months: 12 (from the date stated for receipt of tender)
IV.2.7)Conditions for opening of tenders

Section VI: Complementary information

VI.1)Information about recurrence

This is a recurrent procurement: yes
Estimated timing for further notices to be published:

Between 5-10 years.

VI.2)Information about electronic workflows

Electronic ordering will be used
Electronic invoicing will be accepted
Electronic payment will be used

VI.3)Additional information:

All suppliers who wish to respond to this OJEU notice must request a pre-qualification questionnaire (PQQ) by using the weblink in Section I..3 (www.thameswater.co.uk/procurement).

Note that your client may be Thames Water Utilities Limited or another company within the Kemble Water group structure.

VI.4)Procedures for review

VI.4.1)Review body

Official name: Thames Water Utilities Ltd
Town: Reading
Country: United Kingdom
VI.4.2)Body responsible for mediation procedures

VI.4.3)Review procedure

Precise information on deadline(s) for review procedures:

Thames Water Utilities Ltd will incorporate a standstill period at the point information on the award of the contract is communicated to tenderers. That notification will provide full information on the award decision. The standstill period, which will be for a minimum of 10 calendar days, provides time for unsuccessful tenderers to challenge the award decision before the contract is entered into.

The Utilities Contracts Regulations 2016 provide for aggrieved parties who have been harmed or are at risk of harm by a breach of the rules to take action in the High Court (England, Wales and Northern Ireland).

VI.4.4)Service from which information about the review procedure may be obtained

Official name: Thames Water Utilities Ltd
Town: Reading
Country: United Kingdom

VI.5)Date of dispatch of this notice:

09/03/2020