Awarded contract

Contract for the provision of Logistics Services

  • NORTHERN GAS NETWORKS LIMITED

F15: Voluntary ex ante transparency notice

Notice reference: 2021/S 000-003114

Published 16 February 2021, 2:16pm



Section one: Contracting authority/entity

one.1) Name and addresses

NORTHERN GAS NETWORKS LIMITED

1100 Century Way Thorpe Park

LEEDS

LS158TU

Contact

Ashley Haddock

Email

ahaddock@northerngas.co.uk

Telephone

+44 7779414590

Country

United Kingdom

NUTS code

UKC - NORTH EAST (ENGLAND)

Internet address(es)

Main address

www.northerngas.co.uk

one.6) Main activity

Production, transport and distribution of gas and heat


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Contract for the provision of Logistics Services

two.1.2) Main CPV code

  • 79910000 - Management holdings services

two.1.3) Type of contract

Services

two.1.4) Short description

The current contract for the provision of logistics services expires on 30th June 2021 with no further option to extend.

NGN require logistical services in order to support the Gas distribution infrastructure ensuring a fast and efficient service allowing NGN to outperform all Regulatory and Customer Service targets. The supplier is responsible for the management and operations of all logistics activity.

two.1.6) Information about lots

This contract is divided into lots: No

two.1.7) Total value of the procurement (excluding VAT)

Value excluding VAT: £1,943,658

two.2) Description

two.2.2) Additional CPV code(s)

  • 45213221 - Warehouse stores construction work

two.2.3) Place of performance

NUTS codes
  • UKC - NORTH EAST (ENGLAND)

two.2.4) Description of the procurement

The current contract for the provision of logistics services expires on 30th June 2021 with no further option to extend.

Ceva Logistics provide logistical services in order to support the Gas distribution infrastructure ensuring a fast and efficient service allowing NGN to outperform all Regulatory and Customer Service targets. Ceva are responsible for the management and operations of all logistics activity which comprises of:

* Provision of warehouse management and delivery staff

* Warehousing facility - located within NGN Geographic coverage

* Distribution - direct to site & centralised delivery system to engineers and depots

* Meter management & distribution

* Materials planning

* Stock level optimisation

* Stock profiling

* Vendor performance reporting

The Contract includes the management of stock levels and Ceva will interact with NGN's contracted suppliers. Ceva will also provide an end-to-end design, implementation and operational solutions in freight management, contract logistics, and distribution and transportation management.

two.2.11) Information about options

Options: No


Section four. Procedure

four.1) Description

four.1.1) Type of procedure

Award of a contract without prior publication of a call for competition in the cases listed below

  • The procurement falls outside the scope of application of the regulations

Explanation:

The current contract for the provision of logistics services expires on 30th June 2021 with no further option to extend.

Ceva Logistics provide logistical services in order to support the Gas distribution infrastructure ensuring a fast and efficient service allowing NGN to outperform all Regulatory and Customer Service targets. Ceva are responsible for the management and operations of all logistics activity which comprises of:

* Provision of warehouse management and delivery staff

* Warehousing facility - located within NGN Geographic coverage

* Distribution - direct to site & centralised delivery system to engineers and depots

* Meter management & distribution

* Materials planning

* Stock level optimisation

* Stock profiling

* Vendor performance reporting

* Stock management.

The Contract includes the management of stock levels and Ceva will interact with NGN's contracted suppliers. Ceva will also provide an end-to-end design, implementation and operational solutions in freight management, contract logistics, and distribution and transportation management. Ceva are also currently working with the Future Ways Of Working Team on the development of materials and logistics planning.

The existing contract with CEVA has been in place since 2015, throughout this period of time NGN have acquired a sizeable amount of contingency stock relating to Brexit that is currently stored within multiple CEVA locations - should NGN decide to cease this contract at the point of its current expiry there would be no other accommodating place to store the stock. If a 2 year extension with CEVA is approved this will allow for NGN to conduct a fully successful OJEU procurement tender event to award a new contract and also allow time for NGN to gradually reduce the current stockholding down to pre-Brexit levels in a way that mimimises the impact on the supply chain, which NGN anticipate may take some time.

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

The procurement is covered by the Government Procurement Agreement: No


Section five. Award of contract/concession

A contract/lot is awarded: Yes

five.2) Award of contract/concession

five.2.1) Date of conclusion of the contract

16 February 2021

five.2.2) Information about tenders

The contract has been awarded to a group of economic operators: No

five.2.3) Name and address of the contractor/concessionaire

Ceva Logistics Limited

Leicestershire

Country

United Kingdom

NUTS code
  • UKC - NORTH EAST (ENGLAND)
The contractor/concessionaire is an SME

No

five.2.4) Information on value of contract/lot/concession (excluding VAT)

Initial estimated total value of the contract/lot/concession: £1,943,658

Total value of the contract/lot/concession: £1,943,658


Section six. Complementary information

six.3) Additional information

The Contract includes the management of stock levels and Ceva will interact with NGN's contracted suppliers. Ceva will also provide an end-to-end design, implementation and operational solutions in freight management, contract logistics, and distribution and transportation management. Ceva are also currently working with the Future Ways Of Working Team on the development of materials and logistics planning

The existing contract with CEVA has been in place since 2015, throughout this period of time NGN have acquired a sizeable amount of contingency stock relating to Brexit that is currently stored within multiple CEVA locations - should NGN decide to cease this contract at the point of its current expiry there would be no other accommodating place to store the stock. If a 2 year extension with CEVA is approved this will allow for NGN to conduct a fully successful OJEU procurement tender event to award a new contract and also allow time for NGN to gradually reduce the current stockholding down to pre-Brexit levels in a way that mimimises the impact on the supply chain, which NGN anticipate may take some time.

six.4) Procedures for review

six.4.1) Review body

Northern Gas Networks

Leeds

Country

United Kingdom