Find a TenderAwardedContract details notice
Published 11 Mar 2025, 15:46 GMT

Official UK procurement notice

HEAT NETWORK DEVELOPMENT PARTNER

Official notice

Authority: Plymouth City Council (Local council)·On behalf of: BURO HAPPOLD LIMITED

WorksCompetitive flexible procedureAbove thresholdConcession
Concession value (operator's revenue)£3,500,000,000operator revenue, not the authority's budget
Submissions closed 15 Aug 2025awarded 23 Apr 2026
Awarded to HEAT NETWORKS DEVELOPMENT COMPANY NO.1 LIMITED, Vital Energi Utilities Limited
Contract term 70 yrsends 18 Jun 2096 · up to 31 Jan 2096 with extensions · starts 18 Jun 2026

What is being bought

Published requirement description

Plymouth City Council (PCC) was seeking a Development Partner (DP) to develop and deliver a heat network(s) in the Plymouth's South Coast and Derriford areas. Initially, the DP will be responsible for design and commercialisation of the proposed heat network, up to an approval gateway. The DP will be required to meet minimum mandatory requirements for the proposed heat network, set out in the Development Agreement. If approval is granted the delivery stage will commence. The DP will use a special purpose vehicle in which Plymouth City Council will hold a "golden share"

PCC has undertaken commercialisation work in relation to an initial phase of a heat network in Plymouth's South Coast area, which identified a viable commercial scheme using a significant waste heat source (South West Water Central Plant). A number of public and private sector entities, such as the University of Plymouth, Arts University Plymouth, Devon & Cornwall Police, Plymouth City Council, National Marine Aquarium, Theatre Royal and Plymouth Community Homes are interested in being connected to the heat network to meet their Net Zero ambitions, other parties may join the scheme in future.

The Plymouth South Coast and Derriford areas have been identified through the Department of Energy Security and Net Zero's heat network zoning pilot, as being suitable for low-carbon heat networks. Exclusive rights to develop heat networks in these areas will be subject to the outcome of future Zoning Regulations.

Plymouth City Council have secured government Green Heat Network Fund grant towards the new heat network costs, including commercialisation and construction costs. The remaining development and delivery funding will be provided by the appointed Development Partner.

The contract will consist of two stages: the Development Stage culminating in an approval gateway, and subject to that approval, the Delivery Stage.

The Delivery Stage shall be subject to an evergreen (in perpetuity) Shareholders' Agreement. Therefore, the contract end dates and associated contract value below have been included for system purposes only based on the Council's best current estimate.

  • How the procedure runs: Stage 1: Conditions of Participation; Stage 2: Interim Tender Response Phase (Legal and Technical Submission only) - this stage will not be evaluated, but used to inform the dialogue meetings Stage 3: Dialogue Meetings - Two dialogue meetings: 1 - Legal and Commercial elements; and 2 - Technical elements Stage 4: Final Tender Response; Stage 5: Preferred Supplier Stage Full details contained in Tender Documentation

CPV: District-heating mains construction work · Energy and related services

The lotProcurement structure

single lot · value published
Lot #1AwardedRenewal 70 yrsPublished value£3,500,000,000
Contract period: 18 Jun 2026 – 18 Jun 2096 (70 yrs) · up to 31 Jan 2096 with extensionsValue: £3,500,000,000 exc. VAT · £4,200,000,000 inc. VAT
Delivery: South West
Extensions: Extension options published
Pre-qualification & selection criteria (PQQ)1
  • Condition of participation
    • Conditions of Participation
    • Confirmation of Core Supplier Information
    • Additional Exclusions Information
    • Financial Capacity
    • Insurance
    • Technical Ability
    • Data Protection
    • Health and Safety
    • Business Continuity
    • Requirement under section 73 of the Act
    • Modern Slavery Act
    shortlisting

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 were scored
Quality: 50%Price: 40%Social value: 10%
Published sub-criteria (3)
  • Technical: 50%
  • Commercial: 40%
  • Social Value: 10%
Published award criteria (3)
  • Technical: Proposed Team - 23 Development Methodology - Development Stage - 23 Delivery Methodology - Mobilisation Stage - 18 Subcontracting & Supply Chain - 16 Operations Methodology - 20 Total - 100 The sum of awarded points for Technical Award Criterion will then be converted into 50% available for this criterion. Detailed listing of all criterial and weightings is included in Tender Documentation.
  • Commercial: Qualitative Commercial Sub-Criterion - 70 out of 100 Tariff & Pricing - 42 Hurdle Equity IRR (Qualitative) - 29 Deliverability of Finance - 29 Sub Total for this Sub-Criterion - 100 The sum of awarded points for Qualitative Commercial Sub-Criterion will then be converted into 70% available for this sub-criterion. Quantitative Commercial Sub-Criterion - 30 out of 100 Hurdle Equity IRR (Quantitative) - 100 Sub Total for this Sub-Criterion - 100 The sum of awarded points for Quantitative Commercial Sub-Criterion will then be converted into 30% available for this sub-criterion. Total for Commercial Criterion - 100 The sum of weightings achieved for Quantitative and Qualitative Commercial Sub-Criteria will then be converted into 40% available for this Criterion. Detailed listing of all criterial and weightings is included in Tender Documentation.
  • Social Value: SV - TOMs National Procurement Calculator Sub-Criterion - 60 out of 100 Qualitative elements - 50 Quantitative elements - 50 Sub-Total for TOMs National Procurement Calculator Sub-Criterion - 100 The sum of awarded points for this sub-criterion will then be converted into 60% available for this sub-criterion. Building Resilient Communities Sub-Criterion - 40 out of 100 The sum of awarded points for this sub-criterion will then be converted into 40% available for this sub-criterion. Overall Social Value Total - 100 The sum of awarded points for TOMs National Procurement Calculator and Building Resilient Communities sub-criteria will then be converted into 10% available for Social Value criterion. Detailed listing of all criterial and weightings is included in Tender Documentation.
Conditions of participation1
  • Condition of participation
    • Conditions of Participation
    • Confirmation of Core Supplier Information
    • Additional Exclusions Information
    • Financial Capacity
    • Insurance
    • Technical Ability
    • Data Protection
    • Health and Safety
    • Business Continuity
    • Requirement under section 73 of the Act
    • Modern Slavery Act
    shortlisting
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.

Procedure terms & legal framework

From the official record
Procedure method
Competitive flexible procedure
Legal basis
UKPGA · 2023/54 Procurement Act 2023
Procurement category
Works
Notice status
Awarded
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
11 Mar 2025, 15:46 GMT
Last source update
19 Aug 2026, 15:40 BST
Award evaluation window
Submission end – 25 May 2026
Authority reference
26155
FTS notice number
2025/S 000-040135
Latest notice
Contract details notice (UK7)
Classification (CPV)
District-heating mains construction workEnergy and related services
Delivery area
South West (UKK41)
Official registry OCID
ocds-h6vhtk-04ebb1 Find a Tender
How it runs

Stage 1: Conditions of Participation;

Stage 2: Interim Tender Response Phase (Legal and Technical Submission only) - this stage will not be evaluated, but used to inform the dialogue meetings

Stage 3: Dialogue Meetings - Two dialogue meetings: 1 - Legal and Commercial elements; and 2 - Technical elements

Stage 4: Final Tender Response;

Stage 5: Preferred Supplier Stage

Full details contained in Tender Documentation

How it was run

Official notice
Run through: ProContract (Due North) · Who buys & how to bid on ProContract
Supplier login requiredElectronic submission allowedLanguage: EN
Access & registration note: Free · short registration with manual review; public opportunity list
Requests to participate (first stage)
15 Aug 2025, 12:00 BST
Submission deadline
15 Aug 2025, 12:00 BST
Clarification deadline
8 Aug 2025, 17:00 BST
Submission channel
Official e-sourcing portal
Electronic submission
Allowed
Accepted languages
en
Detailed submission instructions & authority contactsFrom official release

Timeline

11 Mar 2025 → 19 Aug 2026 · 11 dates
  1. Planning notice published
    11 Mar 2025, 15:46 GMT
  2. Market engagement
    30 Apr 2025, 23:59 BST

    The preliminary market engagement related to this project will take the form of a Bidders Day which will be held on 10th April 2025 in Commonwealth Suite, Crowne Plaza, Armada Way PLYMOUTH PL1 2HJ maps.app.goo.gl/uE5csanftaMC1zUi6 ↗

    Main session:

    Suppliers interest in bidding for this opportunity should complete an online registration form following the link: forms.office.com/e/ksM9Aqzdt2 ↗ .

    Places are limited.

    Due to venue capacity, we are forced to restrict the number of representatives to 3 per organisation. Booking of places will be on first come first serve basis.

    Networking session:

    There will also be an opportunity for local suppliers to attend a networking lunch (from 12.30pm) to find out how they might become involved in the project. Suppliers wishing to join the networking session should register using the following link: forms.office.com/e/fmJ66qHeDs ↗. Places are limited.

    Any queries regarding the Bidders Day should be emailed to the team on: [email protected]

  3. Next notice expected
    12 May 2025, 23:59 BST
  4. Tender notice published
    15 Jul 2025, 15:55 BST
  5. Clarification questions by
    8 Aug 2025, 17:00 BST
  6. Submission deadline
    15 Aug 2025, 12:00 BST
  7. Assessment summaries sent174 days ago
    29 Apr 2026, 00:00 BST
  8. Standstill ends161 days ago
    11 May 2026, 23:59 BST
  9. Award decision expected by147 days ago
    25 May 2026, 23:59 BST
  10. Contract starts124 days ago
    18 Jun 2026, 00:00 BST
  11. Latest notice published61 days ago
    19 Aug 2026, 15:40 BST

Notice history

8 events · 4 releases on Find a Tender · since 11 Mar 2025
  1. Preliminary market engagement notice published
    11 Mar 2025, 15:46 GMT
    UK2
  2. Tender notice published
    15 Jul 2025, 15:55 BST
    UK4
  3. Status changed to active
    15 Jul 2025, 15:55 BST
  4. Procurement method changed
    15 Jul 2025, 15:55 BST
  5. Contract award notice published
    29 Apr 2026, 15:12 BST
    UK6
  6. Status changed to complete
    29 Apr 2026, 15:12 BST
  7. Contract signature expected
    12 Jun 2026, 23:59 BST
    scheduled
  8. Contract details notice published
    19 Aug 2026, 15:40 BST
    UK7
Routine re-releases (4)
  • 2025-03: 1 release · 11 Mar 2025

Commercial outcome & contract awards

Published awards, contracts and bid statistics, not a forecast
Awards 1
Awarded value £3,500,000,0001 award exc. VAT
Bids received 1
Named bidders 1published on the award notice
Contracts signed 1latest 28 Jul 2026
Awarded toValueDateStatus
HEAT NETWORKS DEVELOPMENT COMPANY NO.1 LIMITED, Vital Energi Utilities Limitedjoint award15 Jun 2026 – 31 Dec 2097Options: The contract will consist of two stages: the Development Stage culminating in an approval gateway, and subject to that approval, the Delivery Stage. The Delivery Stage shall be subject to an evergreen (in perpetuity) Shareholders' Agreement. Therefore, the contract end dates and associated contract value above have been included for system purposes only based on the Council's best current estimate.£3,500,000,00023 Apr 2026Awarded

Contracts

  • Contract 1 · HEAT NETWORKS DEVELOPMENT COMPANY NO.1 LIMITED, Vital Energi Utilities Limited

    Signed
    28 Jul 2026
    Value
    £3,500,000,000
    Period
    29 Jul 2026 – 29 Jul 2096
    Status
    active
    Options
    The contract will consist of two stages: the Development Stage culminating in an approval gateway, and subject to that approval, the Delivery Stage. The Delivery Stage shall be subject to an evergreen (in perpetuity) Shareholders' Agreement. Therefore, the contract end dates and associated contract value above have been included for system purposes only based on the Council's best current estimate.

Bid statistics published by the authority

BidsSMEVCSEValid bid range
1final-stage tenders00—

Who bid

Bidders as named on the Procurement Act 2023 award notice. “Won” means the bidder holds an award on this notice.

Contracting authority & participating public bodies

4 public bodies on the notice

Plymouth City Council

Contracting authorityPublic authority - sub-central government GB-PPON: PBQP-8499-TLMP Ballard House, West Hoe Road, Plymouth, South West, PL1 3BJContact email

Other public bodies

  • AMBERSIDE ADVISORS LTDProcuring entitycommercial advice, commercial tender documentation, FVRAT and commercial tender evaluationGB-COH: 06078852GB-PPON: PHCN-1919-CCQG Hemel Hempstead, East of EnglandContact email
  • BURGES SALMON LLPProcuring entitylegal supportGB-COH: OC307212GB-PPON: PCJC-9414-RZPH Bristol, South WestContact email
  • BURO HAPPOLD LIMITEDProcuring entityProject management and technical support, drafting technical reference scheme and requirements, technical tender evaluationGB-COH: 02049511GB-PPON: PMYR-5199-WHTD Bath, South WestContact email

Bidders & participating suppliers

2 commercial parties on the notice

Official documents & specifications (7)

Official links; attachments are not copied

Tender pack and attachments

Notices published for this procedure