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Published 18 Jan 2023, 08:55 GMT

Official UK procurement notice

Heat Network Opportunity at Granton Waterfront, Edinburgh

Official notice

Authority: The City of Edinburgh Council (Local council)·Consortium: 6 public authorities

ServicesCompetitive procedure with negotiationSME suitable
Sectors: Petroleum products, fuel, electricity and other sources of energy (09)Construction & Civil Engineering (45)Architecture & Engineering (71) Delivery: Scotland (UKM75)
Published estimate£200,000,000exc. VAT · 1 value update
Submissions closed 19 Jun 2023awarded 23 Jan 2024
Awarded to Vattenfall Heat UK

What is being bought

Published requirement description

The City of Edinburgh Council (the Council) is seeking to procure the delivery of a low carbon heat network to serve the Granton Waterfront development and existing buildings in the surrounding area under a concession model. The Council wishes to identify a concessionaire with the most economically advantageous tender to design, build, finance, operate and maintain the low carbon heat network using a two-stage process.

The successful tenderer will initially be appointed to work with the Council over a c.8 month period under a Pre-Development contract before a final business case for the project is made. This approach has been devised as part of the Council’s procurement strategy to reduce the burden of tendering as much as possible on tenderers and to encourage collaboration, innovation, risk apportionment, and partnership between the Council and the concessionaire.

This procurement includes the opportunity to supply heat from the low carbon heat network to: the Council; the other bodies identified in this contract notice; and any Registered Social Landlords with properties in the Granton Waterfront development or surrounding area.

Further details are outlined within the procurement documents.

CPV: District heating · District-heating mains construction work · District-heating plant construction work · Energy and related services · Heating engineering services for buildings · Heating works · Heating-system design services

The lotProcurement structure

single lot · value published
Lot #1AwardedPublished value£200,000,000
Delivery: Scotland
Extensions: The Council anticipates that it will be possible to expand the network to connect more customers in the Granton Waterfront and surrounding areas. Expansion will be the responsibility of the concessionaire. It should be noted that the procurement process is being undertaken specifically for a heat network provider for the Granton Waterfront Development and surrounding areas, however, the Council reserves the right to extend the Agreement to other areas of the City at its sole discretion. This may include pre-development services or expansion of the network and will be discussed with the successful Tenderer only on completion of the pre-development services.Second stage: up to 4 candidates invited to tenderVariant bids: not allowed
09323000 District heating45232140 District-heating mains construction work45232141 Heating works45251250 District-heating plant construction work71314310 Heating engineering services for buildings71321200 Heating-system design services

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: 70%Price: 30%
Published sub-criteria (2)
  • Quality: 70%
  • Cost: 30%
Published award criteria (2)
  • Quality: 70
  • Cost: 30
Conditions of participation1
  • Suitability

    Please see procurement documents.

Staff
Names and qualifications of delivery staff must be submitted
Successive reduction
Candidates will be reduced successively across stages
What this means for your bid
  • Price carries 30 of 100 points: a 10% discount moves about 3 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 · publisher note attached
Procedure method
Competitive procedure with negotiation
Legal basis
CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)
Procurement category
Services
Notice status
Awarded
Procurement threshold
Unspecified in notice
Regulatory regime
Standard
Commercial structure
Stand-alone contract (no framework)
Competition type
Competitive procedure
GPA / WTO covered
Yes (GPA)
Recurring procurement
No (one-off requirement)
First published
18 Jan 2023, 08:55 GMT
Last source update
21 Mar 2024, 09:47 GMT
Authority reference
CT2931
FTS notice number
2024/S 000-009129
Classification (CPV)
District heatingDistrict-heating mains construction workDistrict-heating plant construction workEnergy and related servicesHeating engineering services for buildingsHeating worksHeating-system design services
Delivery area
Scotland (UKM75)
Official registry OCID
ocds-h6vhtk-03985a Find a Tender
Contract terms
Performance terms

Please see procurement documents.

Review and risk notes
Review procedure

A tenderer that suffers loss as a result of a breach of duty under the Public Contracts (Scotland) Regulations 2015 may bring proceedings in the Sheriff Court or the Court of Session. The City of Edinburgh Council (the Council) will have a minimum standstill period of 10 days before awarding the contract. The communication of the award decision notice will be sent by fax or e-mail to all tenderers with the standstill period commencing on the next day. If proceedings are started in the Sheriff Court or the Court of Session against the Council in respect of the decision to award the contract within the standstill period then the Council is prevented from awarding the contract. Post contract award the Sheriff Court or the Court of Session may (1) award damages provided proceedings are brought within 3 months from the date when the grounds for the bringing of the proceedings first arose (2) be entitled to issue an ineffectiveness order or impose a financial penalty on the Council. A claim for an ineffectiveness order must be made within 30 days of the Contract Award Notice being published in the FTS or within 30 days of the date those who expressed an interest in or otherwise bid for the contract were informed of the conclusion of the contract or in any other case within 6 months from the date on which the contract was entered into.

Publisher note: The contract value specified in this Contract Award Notice is for the delivery of pre-development services which will be completed prior to the concession contract. The fee for these pre-development services is only payable in specific termination scenarios and is not payable if a concession contract is entered into with Vattenfall Heat UK Ltd. If the pre-development contract services are completed successfully, and final business case approval is obtained for the project, an additional Contract Award Notice will be published in relation to the concession contract. (SC Ref:761539)

How it was run

Official notice
Run through: Public Contracts Scotland · Who buys & how to bid on PCS
Supplier login requiredLanguage: EN
Access & registration note: Free single registration for Scotland; PCS-Tender (Jaggaer) for full bidding

Tender documents are also served through a separate tool: https://www.publictendersscotland.publiccontractsscotland.gov.uk/esop/pts-host/public/pts/web/login.html ↗

Submission deadline
19 Jun 2023, 12:00 BST
Submission channel
{"electronicSubmission"}
Accepted languages
en
Detailed submission instructions & authority contactsFrom official release

www.publiccontractsscotland.gov.uk ↗

Timeline

1 May 2023 → 21 Mar 2024 · 4 dates
  1. Next notice expected
    1 May 2023, 00:00 BST
  2. Submission deadline
    19 Jun 2023, 12:00 BST
  3. Invitations to tender expected
    3 Jul 2023, 00:00 BST
  4. Notice published
    21 Mar 2024, 09:47 GMT

Notice history

6 events · 3 releases on Find a Tender · since 17 May 2023
  1. Published value published: £200,000,000
    17 May 2023, 08:47 BST
  2. Status changed to active
    17 May 2023, 08:47 BST
  3. Procurement method changed
    17 May 2023, 08:47 BST
  4. Deadline published: 19 Jun 2023, 12:00 BST
    17 May 2023, 08:47 BST
  5. Buyer details updated
    17 May 2023, 08:47 BST
  6. Status changed to complete
    21 Mar 2024, 09:47 GMT

Commercial outcome & contract awards

Published awards, contracts and bid statistics, not a forecast
Awards 1
Awarded value £885,0401 contract exc. VAT
Bids received 44 from SMEs
Contracts signed 1latest 23 Jan 2024
Awarded toValueDateStatus
Vattenfall Heat UKSME£885,040 †—Awarded

Contracts

  • Contract 009129-2024-CT2931-1 · Vattenfall Heat UKSME

    Signed
    23 Jan 2024
    Value
    £885,040
    Status
    active

Bid statistics published by the authority

BidsSMEVCSEValid bid range
4bids · 4 electronic · 4 from abroad4——

Contracting authority & participating public bodies

5 public bodies on the notice

City of Edinburgh Council

Contracting authorityLocal CouncilRegional or local authorityGeneral public services Waverley Court, 4 East Market Street, Edinburgh, Scotland, EH8 8BGContact name, email, phone

Consortium members and other public bodies

Dispute resolution & review bodies

  • Sheriff CourtReview body Sheriff Court House, 27 Chambers Street

Bidders & participating suppliers

1 commercial party on the notice
  • Vattenfall Heat UKAwarded supplier The Tun, 4 Jacksons Entry, Holyrood Road, Edinburgh, UK, EH8 8PJContact phone

Official documents & specifications (2)

Official links; attachments are not copied

Tender pack and attachments

  • Economic and financial selection criteriatenderEconomic and financial selection criteria
  • Technical selection criteriatenderTechnical selection criteria