Find a TenderClosed
Published 20 Mar 2024, 13:16 GMT

Official UK procurement notice

Sunderland Central Heat Network

Official notice

Authority: Sunderland City Council (Local council)·Consortium: 2 public authorities

ServicesCompetitive dialogue
Published estimate£130,000,000exc. VAT · 1 value update
Submissions closed 21 May 2024
Next notice expected 10 Apr 2024

What is being bought

Published requirement description

Sunderland City Council (the “Council”) is seeking interest and proposals from suitable economic operators to take forward the delivery of a large-scale heat network in the Sunderland City Centre area to serve a number of municipal, commercial and residential customers through an innovative contractual structure.

Following completion of the procurement process, the Council will enter into a joint development agreement (“JDA”) with the selected bidder (“ESCO”) under which the Council and the ESCO will work in partnership throughout the commercialisation phase of the project.

On completion of the commercialisation phase and a final investment decision having been approved by both parties, the project will move to the delivery stage and the Council proposes to enter into the “Delivery Contracts” for the project including:-

  • the project governance agreement (“PGA”), which shall govern the rights and relationship between the Council and the ESCO in delivering the project;
  • the connection and supply agreements for the anchor load properties (see below); and
  • any other relevant legal documents agreed during the commercialisation phase.

This procurement includes the opportunity to provide heat to the initial anchor load customers which includes South Tyneside and Sunderland NHS Foundation Trust, University of Sunderland, Gentoo, the Council, and other un-named Public Sector Contracting Authorities within the administrative boundary of The City of Sunderland.

CONFIDENTIALITY AGREEMENT

The procurement documents are available for access free of charge (subject to the potential bidder signing and returning a Confidentiality Agreement), which is available when bidders express an interest in the opportunity in the project at www.nepo.org ↗ and NEPO Portal project reference DN693892.

The timescale for returning the Selection Questionnaire has been extended in accordance with Regulation 53(4) Public Contracts Regulations 2015 to take account of the requirement to enter into a Confidentiality Agreement to access the procurement documents.

Further information on the Confidentiality Agreement is contained in V1.3 Additional Information of Section VI. Complementary information of this Contract Notice

CPV: Construction work · District heating · Public utilities

The lotProcurement structure

single lot · value published
Lot #1Published value£130,000,000
Delivery: North East
Second stage: up to 4 candidates invited to tenderVariant bids: not allowed

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
Conditions of participation1
  • Suitability

    Please see procurement documents

Procedure terms & legal framework

From the official record · publisher note attached
Procedure method
Competitive dialogue
Legal basis
CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)
Procurement category
Services
Notice status
Closed
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
20 Mar 2024, 13:16 GMT
Last source update
16 Apr 2024, 13:01 BST
Authority reference
DN693892
FTS notice number
2024/S 000-012340
Classification (CPV)
Construction workDistrict heatingPublic utilities
Delivery area
North East (UKC23)
Official registry OCID
ocds-h6vhtk-044acd Find a Tender
Contract terms
Performance terms

Please see procurement documents

Review and risk notes
Review procedure

The Council will incorporate a minimum 10 calendar day standstill period at the point the award decision is notified to bidders. Any communication and/or claims must be made by a bidder in accordance with the process and timescales set out in the Public Contracts Regulation 2015 (SI 2015 No 102).

Publisher note: The JDA approach is effectively a form of two stage procurement. Following conclusion of the procurement process the Council and the ESCO will enter into the JDA. Following conclusion of the commercialisation phase (and subject to a final investment decision being approved by both parties) the Council and the ESCO will enter into the PGA and connection and supply agreements and the ESCO will enter into the connection and supply agreements with the other anchor load customers. The procurement has been structured so as to ensure that the Council and other public sector customers identified as the anchor load customers are able to enter into the delivery contracts without a further procurement process being undertaken. The proposal is for the network to provide low carbon heat to a number of customers in the Sunderland City Centre area which shall initially include:- - South Tyneside and Sunderland NHS Foundation Trust in relation to Sunderland Royal Hospital and, potentially, a number of other buildings owned and occupied by the Trust; - University of Sunderland in relation to a number of buildings on the University’s City Campus; - Gentoo Group Limited in relation to a number of social housing blocks in the City; - the Council in relation to Sunderland City Hall; and - other un-named Public Sector Contracting Authorities within the administrative boundary of The City of Sunderland, with the intention for further expansion of the network in the future. For the purposes of Section II.2.7 (Duration), it is mandatory to enter a figure for contract duration in the template for this notice. The term of 40 years (480 months) has been inserted as this was one of the factors used to calculate the estimated contract value (as set out above). However, as set out in Section II.2.4, the duration of the Project is not time limited, subject to complying with the relevant project documents. The value provided in Section II.2.6 represents the Council’s estimate of the total value of the contract opportunity based on information available and Council assumptions relating to the Core Scheme over a period of 40 years with additional connections and expansion opportunities. The Selection Questionnaire documents are available for access free of charge (subject to the potential bidder signing and returning a Confidentiality Agreement). CONFIDENTIALITY AGREEMENT Bidders may access the Confidentiality Agreement which is available when bidders express an interest in the opportunity in the project at https://www.nepo.org/ and NEPO Portal project reference DN693892 and signing and returning their signed Confidentiality Agreement via the NEPO Portal. The Council will countersign and return the Confidentiality Agreement to the bidder and provide unrestricted access to the full set of Procurement Documentation. The timescale for returning the Selection Questionnaire has been extended in accordance with Regulation 53(4) Public Contracts Regulations 2015 to take account of the requirement to enter into a Confidentiality Agreement to access the procurement documents.

How it was run

Official notice
Run through: Proactis / ProContract · Who buys & how to bid on ProContract
Language: EN
Submission deadline
21 May 2024, 12:00 BST
Submission channel
{"electronicSubmission"}
Accepted languages
en
Participation fee
document
Bid validity
120 days from the deadline
Detailed submission instructions & authority contactsFrom official release

Timeline

10 Apr 2024 → 21 May 2024 · 4 dates
  1. Next notice expected
    10 Apr 2024, 00:00 BST
  2. Invitations to tender expected
    16 Apr 2024, 00:00 BST
  3. Notice published
    16 Apr 2024, 13:01 BST
  4. Submission deadline
    21 May 2024, 12:00 BST

Notice history

5 events · 4 releases on Find a Tender · since 16 Apr 2024
  1. Published value published: £130,000,000
    16 Apr 2024, 13:01 BST
  2. Status changed to active
    16 Apr 2024, 13:01 BST
  3. Procurement method changed
    16 Apr 2024, 13:01 BST
  4. Deadline published: 21 May 2024, 12:00 BST
    16 Apr 2024, 13:01 BST
  5. Buyer details updated
    16 Apr 2024, 13:01 BST
Published amendments (2 · 0 deadline changes)
WhenWhatBeforeAfterShift
—TextShort description · II.1.4Sunderland City Council (the “Council”) is undertaking a pre-market engagement exercise, by inviting potential bidders to attend a Bidders Day for an upcoming procurement for a suitable economic operator to take forward the delivery of a large-scale heat network in the Sunderland City Centre area to serve a number of municipal, commercial and residential customers through an innovative contractual…Sunderland City Council (the “Council”) is undertaking a pre-market engagement exercise, by inviting potential bidders to attend a Bidders Day for an upcoming procurement for a suitable economic operator to take forward the delivery of a large-scale heat network in the Sunderland City Centre area to serve a number of municipal, commercial and residential customers through an innovative contractual…
—TextShort description · II.1.4Further information on the Bidders Day and a project prospectus is available in the in the Sunderland Central Heat Network Bidders Day advert on the NEPO E Tender Portal on the following weblink https://procontract.due-north.com/Procurer/Advert/View?advertId=44d7c275-e3cfee11- 8127-005056b64545&fromAdvertEvent=TrueFurther information on the Bidders Day and a project prospectus is available in the in the Sunderland Central Heat Network Bidders Day advert on the NEPO E Tender Portal on the following weblink. https://procontract.due-north.com/Procurer/Advert/View?advertId=44d7c275-e3cf-ee11-8127-005056b64545&fromAdvertEvent=True

2 amendments published without a description.

Routine re-releases (4)
  • 2024-03: 1 release · 20 Mar 2024

Contracting authority & participating public bodies

2 public bodies on the notice

Sunderland City Council

Contracting authorityLocal CouncilRegional or local authorityGeneral public services City Hall, Plater Way, Sunderland, North East, SR1 3ADContact name, email, phone Published organisation website ↗

Consortium members and other public bodies

Dispute resolution & review bodies

  • High Court of England & WalesReview body London

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