Contract

Power Sector Model (BID3)

  • DESNZ & DSIT Group Commercial

F03: Contract award notice

Notice identifier: 2025/S 000-015550

Procurement identifier (OCID): ocds-h6vhtk-050406

Published 16 April 2025, 1:19pm



Section one: Contracting authority

one.1) Name and addresses

DESNZ & DSIT Group Commercial

3-8 Whitehall Place,

London

SW1A 2EG

Contact

Mercedes Ekanem

Email

Mercedes.Ekanem@energysecurity.gov.uk

Country

United Kingdom

Region code

UK - United Kingdom

Internet address(es)

Main address

https://www.gov.uk/government/organisations/department-for-energy-security-and-net-zero

one.2) Information about joint procurement

The contract is awarded by a central purchasing body

one.4) Type of the contracting authority

Ministry or any other national or federal authority

one.5) Main activity

General public services


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Power Sector Model (BID3)

two.1.2) Main CPV code

  • 71314000 - Energy and related services

two.1.3) Type of contract

Services

two.1.4) Short description

DESNZ is currently transitioning from its current power sector model, the Dynamic Dispatch Model (DDM), to a new power sector model (BID3). We anticipate it will take some time before BID3 is properly integrated into analytical and decision-making processes. This contract is designed to fulfil the department's interim ongoing need for electricity modelling.

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: £427,000

two.2) Description

two.2.3) Place of performance

NUTS codes
  • UK - United Kingdom

two.2.4) Description of the procurement

External energy related analytical and consultancy services

two.2.5) Award criteria

Price

two.2.11) Information about options

Options: No

two.2.13) Information about European Union Funds

The procurement is related to a project and/or programme financed by European Union funds: 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

  • New works/services, constituting a repetition of existing works/services

Explanation:

The following information provides further detail on the decision to use a Single Tender Action and the selection of LCP to fulfil the requirement. LCP were issued a direct award in August 2024 which expired on 28 March 2025. This was in order to enable transitioning from its current power sector model, the Dynamic Dispatch Model (DDM), to a new power sector model (BID3). This interim measure was undertaken as it was initially anticipated that it would take 8 months to transition from DDM to BID3. However, complexities with the deployment of BID3 means that it is critical to maintain the DDM for the department’s electricity modelling for a further period. This interim period will allow for the integration into the analytical and decision-making processes.

The reason for the continuation of DDM is to meet essential power sector modelling requirements for policy development / business cases while the team can establish a new, more powerful, power sector model. The new power sector model we are trying to establish in DESNZ (BID3) has proved more challenging to implement than anticipated. Whilst this new model is being established, we need to meet the long list of urgent demands for power sector modelling.

Once we had decided that we should use the DDM and contract the work out – LCP were the only viable option. This is because LCP developed the Dynamic Dispatch Model (DDM) in the first place (for the Department of Energy and Climate Change (DECC)) and are the only supplier/contractor who can use the DDM – both in terms of institutional expertise, as well as having the software/model available.

DDM is an LCP model and has been in situ since DECC. LCP are the only party able to operate and maintain the model.

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

The procurement is covered by the Government Procurement Agreement: Yes


Section five. Award of contract

Contract No

con_7541

Title

Electricity Modelling for DESNZ using the Dynamic Dispatch Model

A contract/lot is awarded: Yes

five.2) Award of contract

five.2.1) Date of conclusion of the contract

28 March 2025

five.2.2) Information about tenders

Number of tenders received: 1

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

five.2.3) Name and address of the contractor

Lane Clark & Peacock LLP

95 Wigmore St,

London

W1U 1DQ

Country

United Kingdom

NUTS code
  • UK - United Kingdom
The contractor is an SME

No

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

Total value of the contract/lot: £427,000


Section six. Complementary information

six.4) Procedures for review

six.4.1) Review body

Department for Energy Security and Net Zero

London

Country

United Kingdom