Find a TenderOpen for tender Tender notice
Published 25 Jun 2026, 18:28 BST

Official UK procurement notice

Byker District Heat Network

Authority: Karbon Homes (Public body)·On behalf of: HNDC

ServicesCompetitive flexible procedureAbove thresholdConcession
Concession value (operator's revenue)£145,000,000operator revenue, not the authority's budget · 1 value update
Submission deadline 20 Nov 202612:00 GMT · 29d 8h left
Clarification cut-off 11 Nov 202617:00 GMT · questions to the authority
Contract term 41 yrsends 31 Dec 2067 · up to 1 Apr 2067 with extensions · starts 1 Jan 2027

What is being bought

Published requirement description

Karbon Homes invites tenders for the design, build, finance, operation and maintenance of the decarbonised Byker District Heat Network in Newcastle upon Tyne. The Byker estate is Grade II* listed, covers around 80 hectares and is live and occupied throughout. There are 1,985 connections, being 1,815 Karbon Homes connections and 170 freeholder and non-domestic connections presently supplied by Newcastle City Council, of which 1,978 are residential and 7 are non residential. The network is served by the Walker Road energy centre and twelve substations.

A preliminary market engagement notice for this procurement, reference 2026/S 000-060054, was published on 25 June 2026. The description of the scheme in that notice has been superseded and tenderers should refer to the information contained within this tender pack.

All documents relating to this tender are available to download from the Panacea e-Sourcing portal.

Submission Instructions:

Electronically via the e-Sourcing portal. Suppliers must submit one copy of their tender electronically, with any additional documents required or requested. Documents must be compatible with Microsoft Office or Adobe/PDF.

Should you require technical support with the e-Sourcing portal please email them directly at:

Tenders must be submitted using the above e-Sourcing portal. Tenders submitted via postal, or email methods will not be accepted.

  • How the procedure runs: Stage one RFX Questionnaire will be evaluated on a pass/fail basis and in accordance with the information detailed within the ITT. In instances where a submission is rejected at this point, the Supplier will automatically be disqualified and will not progress to the next stage. Submissions which have met the minimum standards will be shortlisted and stage two and submissions will be evaluated in accordance with the evaluation assessment process as described below and as set out in the award criteria, within the ITT. Submissions will be ranked as part of assessment at stage two, only the highest ranked supplier will progress onto stage three. Subject to Board approval the Authorities intension is to enter into a PCSA agreement with the highest ranked supplier, whilst negotiating the final terms of the concession agreement. Any negotiation will be based on the agreement included in the tender pack, and the Authority reservice the right to engage with the next ranked supplier from stage two should any discussion become protracted or in the opinion of the Authority be unlikely to result an agreed contract.

CPV: District heating · Heating-system design services · Mechanical and electrical engineering services

The lotProcurement structure

single lot · value published
Lot #1Renewal 41 yrsPublished value£145,000,000
Contract period: 1 Jan 2027 – 31 Dec 2067 (41 yrs) · up to 1 Apr 2067 with extensionsValue: £145,000,000 exc. VAT · £174,000,000 inc. VAT
Delivery: North East
Extensions: Extension options published

Who is likely to bid for this lot ↓

What it takes to win
i

How this buyer will score bids.

The evaluation criteria and weights exactly as published on the notice, grouped by family (price, quality, social value and so on).

Evaluation split and conditions of participation as published; the tender pack may add more
How bids are scored
Quality: 50%Price: 40%Social value: 10%
Published sub-criteria (12)
  • Development to contract close, consents and heritage: 8%
  • Delivery in a live, occupied, listed estate: 12%
  • Generation, storage, network and capacity for growth: 12%
  • Operation, maintenance, lifecycle and handback: 10%
  • Customers, vulnerability and regulatory compliance: 8%
  • F1 Hurdle equity internal rate of return: 4%
  • F2 Financial model: 6%
  • F3 Tariff and landlord contribution: 16%
  • F4 Pre-construction services contribution: 5%
  • F5 Delivery stage funding: 5%
  • F6 Grant drawdown and defrayal: 4%
  • Social Value: 10%
Published award criteria (12)
  • Development to contract close, consents and heritage
  • Delivery in a live, occupied, listed estate
  • Generation, storage, network and capacity for growth
  • Operation, maintenance, lifecycle and handback
  • Customers, vulnerability and regulatory compliance
  • Social Value
  • F1 Hurdle equity internal rate of return
  • F2 Financial model
  • F3 Tariff and landlord contribution
  • F4 Pre-construction services contribution
  • F5 Delivery stage funding
  • F6 Grant drawdown and defrayal

No conditions of participation were published on the notice; check the tender documents.

What this means for your bid
  • Price carries 40 of 100 points: a 10% discount moves about 4 points. The method statement decides this lot, not the discount.

Price arithmetic assumes straight proportional scoring; the tender pack may use another formula.

Competition analysis · published record, not a forecast of who will bid

How Karbon Homes buys Steam, hot water and associated products (CPV 0932), and who usually turns up

Karbon Homes’s own published record, next to the published market for the same work. Frameworks and DPS are kept out: they attract a different number of bids. Whole-market view: Steam, hot water and associated products (CPV 0932) →

1

How the contest usually goes

Winner shares use published awards; bid and price charts use contested lots.

Question for the bid
This buyerKarbon Homes · all categories
What to do with it
How often do SMEs win?
i

How often small and medium firms win.

Share of awards where the winner’s size is known.

The counts under this question show how many awards have a known supplier size.

Last 36 months.

Buyer: 14 of 27 known-size awards · market: division 09 · North East England, n=26
52%31%

Small firms have won here. Neither number says whether you qualify; it describes who has been winning.

How often do local suppliers win?
i

How often local firms win similar work.

Winners with a registered address in the delivery region, out of awards with a known address.

Here, local means the winner is registered in the region where that contract was delivered.

A local branch does not count if the registered address is elsewhere.

Last 36 months.

Buyer: 14 of 29 known-location awards · market: CPV 0932 · UK-wide, n=12
48%67%

Most of this buyer’s recorded winners are registered outside North East England.

How long to a decision?
i

How long buyers here take to decide after bids close.

Middle value in days from the deadline to the first award notice, on competitions that published both dates.

Only decided tenders count, so slow ones still waiting are not in.

Last 36 months.

Buyer: 11 decided notices · market: division 09 · North East England, n=8
29 days28 days

Half of these awards were announced within 29 days of the bid deadline.

How often single-bid or direct?
i

How often work is awarded with no recorded rival.

Direct awards and tenders where every published lot count shows one bid.

Both shares are minimums: some awards have no bid count.

Thin markets produce this too; it is not proof of a tailored specification.

Last 36 months.

Buyer: at least 16 of 38 procurements with awards had no recorded rival · market: CPV 0932 · UK-wide, n=14
42%50%

Direct awards or one recorded bid are common here. Check the route before spending time on a bid.

How many bids did past lots attract?

i

How many bids past lots received.

Each colour is a bid-count range. Only competed lots with a published count are included.

Past bids do not predict this tender.

Last 36 months.

This buyer30 lots with bid counts · all categories
0% had one bid
The market7 lots with bid counts · division 09 · North East England
0% had one bid
Buyer / market · select a colour for counts
1 bid0% / 0%
Buyer: 0 of 30 lots with published bid counts. Market: 0 of 7 lots with published bid counts.
2–330% / 29%
Buyer: 9 of 30 lots with published bid counts. Market: 2 of 7 lots with published bid counts.
4–633% / 0%
Buyer: 10 of 30 lots with published bid counts. Market: 0 of 7 lots with published bid counts.
7+37% / 71%
Buyer: 11 of 30 lots with published bid counts. Market: 5 of 7 lots with published bid counts.

How did awards compare with estimates?

i

Where winning prices landed against estimates.

Each colour shows awards below, close to or above the published estimate, one lot at a time.

Past prices are a guide, not a bid price.

Last 36 months.

This buyer7 lots with estimate and award · all categories
14% below estimate
The market6 lots with estimate and award · division 09 · North East England
17% below estimate
Buyer / market · select a colour for counts
Below estimate14% / 17%
Buyer: 1 of 7 lots with an estimate and award. Market: 1 of 6 lots with an estimate and award.
Within ±2%71% / 67%
Buyer: 5 of 7 lots with an estimate and award. Market: 4 of 6 lots with an estimate and award.
Above estimate14% / 17%
Buyer: 1 of 7 lots with an estimate and award. Market: 1 of 6 lots with an estimate and award.
2

Assess each lot
i

What past awards tell you about each lot.

See the forecast, this buyer’s earlier suppliers and firms with relevant wins.

No supplier is confirmed as a bidder.

Open a lot for its forecast, this buyer’s previous supplier and possible competitors, from published award history, not a bid list

Lot #1CPV 0932492 monthsPublished estimate£145m
Expected competition
i

How many bids this lot may attract.

The forecast uses similar past competitions. The bar shows either that forecast or past bid counts; the line below says which.

Each lot shows its own forecast based on its own category; forecasts for different lots of the same notice are not comparative.

A forecast, not a list of bidders.

3expected bids15% single-bid risk
forecast from 13 past contests
Forecast chances for this lot
1 bid15%
Chance this lot gets 1 bid: 15%. This is a forecast.
2–345%
Chance this lot gets 2–3: 45%. This is a forecast.
4–632%
Chance this lot gets 4–6: 32%. This is a forecast.
7+7%
Chance this lot gets 7+: 7%. This is a forecast.
Commercial price forecast
i

Where the award price may land.

The forecast uses similar awards and the buyer’s estimate. The band covers the middle half of likely prices.

Based on 3 comparable awards. Each lot reflects its own category; forecasts for different lots of the same notice are not comparative.

A statistical guide from past awards, not a price to bid.

£145mMatches estimate (64% chance)
3 comparable awards
Forecast compared with the buyer’s estimate
Middle 50%£145m
The middle half of likely prices meets at £145,000,000.
Estimate£145m
The buyer published an estimate of £145,000,000 for this lot.

Who has supplied this buyer on similar work?
i

Who has done similar work for this buyer.

Past contracts are matched by buyer, title and type of work.

A past supplier may not bid again.

No earlier contract of this buyer matches this lot on the published record.

Who could compete for this lot?
i

Who could compete for this lot?

Firms with relevant past wins. On a framework, we show firms on that agreement.

None is confirmed as a bidder.

SupplierWon in this categoryLive contractsAward vs estimate
EDFLarge
3 wins in North East England7 panel places
£29m16 awards in 36m · last 1 months ago1 live · £81k
i

Public contracts this supplier still holds.

Its awards whose published end date is still in the future, with their values. Many contracts publish no end date, so this is a floor, not the whole book.

Unexpired says nothing about spare capacity.

no comparable pairs
2 wins in North East England6 panel places
£34m13 awards in 36m · last 4 months ago2 live · £11m
i

Public contracts this supplier still holds.

Its awards whose published end date is still in the future, with their values. Many contracts publish no end date, so this is a floor, not the whole book.

Unexpired says nothing about spare capacity.

at estimate n=1
£254m6 awards in 36m · last 4 months ago3 live · £253m
i

Public contracts this supplier still holds.

Its awards whose published end date is still in the future, with their values. Many contracts publish no end date, so this is a floor, not the whole book.

Unexpired says nothing about spare capacity.

23% below n=4
1 win in North East England1 panel places
£1.1m4 awards in 36m · last 3 months ago1 live · £48k
i

Public contracts this supplier still holds.

Its awards whose published end date is still in the future, with their values. Many contracts publish no end date, so this is a floor, not the whole book.

Unexpired says nothing about spare capacity.

no comparable pairs
£280m8 awards in 36m · last 5 months ago4 live · £276m
i

Public contracts this supplier still holds.

Its awards whose published end date is still in the future, with their values. Many contracts publish no end date, so this is a floor, not the whole book.

Unexpired says nothing about spare capacity.

26% below n=26
About this data
  • Source. Official UK public procurement notices (Find a Tender), reused under the Open Government Licence v3.0. New notices arrive through the day; the figures are rebuilt nightly.
  • Two views, kept apart. The authority’s own track record and the wider market for the same kind of work sit side by side and are never mixed. Where the local picture is too thin, a figure widens to a broader market and says which one it used.
  • Forecasts are labelled. The price forecast and its range, possible competitors and the earlier-work matches are our estimates from past awards: not published facts, not win chances and not price advice. Official notices do not say who is bidding.
  • Every figure shows what it rests on. Not every notice publishes a bid count, a value or a delivery region, so each figure carries the number of records behind it, and one built on few records is marked as such. The on a figure explains it; the counting rules are in the methodology. Spotted something wrong? Tell us.

Procedure terms & legal framework

From the official record
Procedure method
Competitive flexible procedure
Legal basis
UKPGA · 2023/54 Procurement Act 2023
Procurement category
Services
Notice status
Open for tender
Procurement threshold
Above threshold (FTS publication)
Regulatory regime
Concession
Commercial structure
Stand-alone contract (no framework)
Competition type
Competitive procedure
GPA / WTO covered
Yes (GPA)
Recurring procurement
Unspecified in notice
First published
25 Jun 2026, 18:28 BST
Last source update
19 Oct 2026, 20:10 BST
Award evaluation window
Submission end – 11 Dec 2026
Authority reference
202606 - GS32
FTS notice number
2026/S 000-098720
Latest notice
Tender notice (UK4)
Classification (CPV)
District heatingHeating-system design servicesMechanical and electrical engineering services
Delivery area
North East (UKC)
Official registry OCID
ocds-h6vhtk-06bd8c Find a Tender
How it runs

Stage one RFX Questionnaire will be evaluated on a pass/fail basis and in accordance with the information detailed within the ITT. In instances where a submission is rejected at this point, the Supplier will automatically be disqualified and will not progress to the next stage.

Submissions which have met the minimum standards will be shortlisted and stage two and submissions will be evaluated in accordance with the evaluation assessment process as described below and as set out in the award criteria, within the ITT.

Submissions will be ranked as part of assessment at stage two, only the highest ranked supplier will progress onto stage three. Subject to Board approval the Authorities intension is to enter into a PCSA agreement with the highest ranked supplier, whilst negotiating the final terms of the concession agreement. Any negotiation will be based on the agreement included in the tender pack, and the Authority reservice the right to engage with the next ranked supplier from stage two should any discussion become protracted or in the opinion of the Authority be unlikely to result an agreed contract.

How to participate & submission route

Official notice Submit via Panacea
Submission portal named on this notice: Panacea
Supplier login requiredElectronic submission allowedLanguage: EN
Access & registration note: Free
Requests to participate (first stage)
—
Tender submission deadline
20 Nov 2026, 12:00 GMT
Clarification deadline
11 Nov 2026, 17:00 GMT
Submission channel
Official e-sourcing portal
Electronic submission
Allowed
Accepted languages
en
Detailed submission instructions & authority contactsFrom official release
Published estimate £145,000,000 excludes VAT (£174,000,000 including VAT).

Timeline

25 Jun 2026 → 1 Jan 2027 · 7 dates
  1. Planning notice published118 days ago
    25 Jun 2026, 18:28 BST
  2. Market engagement21 days ago
    30 Sept 2026, 23:59 BST

    Indicative Timeframes

    The following indicative timeframes are set out to inform respondents. They are subject to refinement based on SMT feedback and GHNF funding conditions.

    1. Issue of SMT and prospectus: July 2026
    2. SMT response deadline: 17th July 2026
    3. Market engagement sessions (1:1 / group): August 2026
    4. Publication of refined opportunity shape / procurement strategy: August 2026
    5. Procurement launch: August – September 2026
    6. Preferred partner identified: September 2026
    7. Contract award / financial close: March 2027
    8. Construction commencement: April 2027
    9. GHNF construction spend-by deadline: Financial Year End 2028
    10. Scheme in service / operational handover: 2028 Onward
  3. Tender notice published2 days ago
    19 Oct 2026, 20:10 BST
  4. Today
    22 Oct 2026
  5. Clarification questions byin 21 days
    11 Nov 2026, 17:00 GMT
  6. Submission deadlinein 29 days
    20 Nov 2026, 12:00 GMT
  7. Award decision expected byin 51 days
    11 Dec 2026, 23:59 GMT
  8. Contract startsin 71 days
    1 Jan 2027

Notice history

6 events · 2 releases on Find a Tender · since 25 Jun 2026
  1. Preliminary market engagement notice published
    25 Jun 2026, 18:28 BST
    UK2
  2. Tender notice published
    19 Oct 2026, 20:10 BST
    UK4
  3. Published value published: £145,000,000
    19 Oct 2026, 20:10 BST
  4. Status changed to active
    19 Oct 2026, 20:10 BST
  5. Procurement method changed
    19 Oct 2026, 20:10 BST
  6. Deadline published: 20 Nov 2026, 12:00 GMT
    19 Oct 2026, 20:10 BST

Commercial outcome & contract awards

Nothing awarded yet
Awards (0)
No award published
Contracts (0)
No contract published
Bid statistics
No aggregate bid statistics published

Contracting authority & participating public bodies

2 public bodies on the notice

Karbon Homes

Contracting authorityPublic authority - sub-central government GB-PPON: PCDL-6326-LXPW 5 Gosforth Park, Gosforth Business Park, Newcastle upon Tyne, North East, NE12 8EGContact name, email

Other public bodies

  • HNDCProcuring entityITT preparation and evaluation support.GB-COH: 15709646 Harrow, LondonContact name, email

Official documents & specifications (2)

Official links; attachments are not copied

Notices published for this procedure