Opportunity

Renewable Heat Services-2023-SER051

  • The Highland Council

F02: Contract notice

Notice reference: 2023/S 000-016800

Published 14 June 2023, 9:21am



Section one: Contracting authority

one.1) Name and addresses

The Highland Council

Council Headquarters, Glenurquhart Road

Inverness

IV3 5NX

Contact

Scott Henderson

Email

contracts.team@highland.gov.uk

Telephone

+44 1463702979

Country

United Kingdom

NUTS code

UKM6 - Highlands and Islands

Internet address(es)

Main address

http://www.highland.gov.uk/

Buyer's address

https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA00045

one.2) Information about joint procurement

The contract is awarded by a central purchasing body

one.3) Communication

The procurement documents are available for unrestricted and full direct access, free of charge, at

https://www.publiccontractsscotland.gov.uk/

Additional information can be obtained from the above-mentioned address

Tenders or requests to participate must be submitted electronically via

www.publiccontractsscotland.gov.uk

one.4) Type of the contracting authority

Regional or local authority

one.5) Main activity

General public services


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Renewable Heat Services-2023-SER051

Reference number

HC/P&H/SER051/2023

two.1.2) Main CPV code

  • 50000000 - Repair and maintenance services

two.1.3) Type of contract

Services

two.1.4) Short description

The Authority wishes to appoint one Contractor submitting the Most Economically Advantageous Tender (MEAT), to manage, operate and maintain renewable heat and associated services across the estate.

The Contractor will be required to undertake the management of heat provision, which will include fuel delivery and supply, management and undertaking of the servicing, maintenance and repair of biomass plant, and associated equipment, including fuel storage facilities, ancillary equipment and plant controls.

The contract specifically excludes the building heating system such as pipework and heaters and the Authority’s Housing stock which is specifically excluded from the scope of the requirements described.

The Contract shall commence on 06 September 2023 and will endure until 05 September 2026, with the option of multiple extensions to be extended by up to thirty-six (36) months, subject to mutual agreement. The option of multiple extensions may be exercised by the Authority giving written notice to the Contractor to that effect, not less than three (3) months before the contract would otherwise expire.

The estimated annual value (based on historical data of approximately 35,000,000kWh heat consumption across the estate) is 5,800,000.00 GBP. Please note these are estimated and for guidance purposes only.

Tenderers should note and consider the background of market conditions and decreasing public sector budgets and the need to target and achieve budgetary pressures against the current annual costs experienced by the Council for the Services provided by this Contract.

two.1.5) Estimated total value

Value excluding VAT: £34,800,000

two.1.6) Information about lots

This contract is divided into lots: No

two.2) Description

two.2.3) Place of performance

NUTS codes
  • UKM6 - Highlands and Islands
Main site or place of performance

Covers Highland Council Area

two.2.4) Description of the procurement

The Authority wishes to appoint one Contractor submitting the Most Economically Advantageous Tender (MEAT), to manage, operate and maintain renewable heat and associated services across the estate.

The Contractor will be required to undertake the management of heat provision, which will include fuel delivery and supply, management and undertaking of the servicing, maintenance and repair of biomass plant, and associated equipment, including fuel storage facilities, ancillary equipment and plant controls.

The contract specifically excludes the building heating system such as pipework and heaters and the Authority’s Housing stock which is specifically excluded from the scope of the requirements described.

The Contract shall commence on 06 September 2023 and will endure until 05 September 2026, with the option of multiple extensions to be extended by up to thirty-six (36) months, subject to mutual agreement. The option of multiple extensions may be exercised by the Authority giving written notice to the Contractor to that effect, not less than three (3) months before the contract would otherwise expire.

The estimated annual value (based on historical data of approximately 35,000,000kWh heat consumption across the estate) is 5,800,000.00 GBP. Please note these are estimated and for guidance purposes only.

Tenderers should note and consider the background of market conditions and decreasing public sector budgets and the need to target and achieve budgetary pressures against the current annual costs experienced by the Council for the Services provided by this Contract.

two.2.5) Award criteria

Quality criterion - Name: Quality / Weighting: 70

Price - Weighting: 30

two.2.6) Estimated value

Value excluding VAT: £34,800,000

two.2.7) Duration of the contract, framework agreement or dynamic purchasing system

Duration in months

36

This contract is subject to renewal

Yes

Description of renewals

With the option of multiple extensions to be extended by up to thirty-six (36) months, subject to mutual agreement

two.2.10) Information about variants

Variants will be accepted: No

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 three. Legal, economic, financial and technical information

three.1) Conditions for participation

three.1.1) Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers

List and brief description of conditions

Bidder to ensure that relevant to the specific work element being undertaken, the contractor and/or any of their sub-contractors shall hold current memberships of the following organisations:

- NIC-EIC; SELECT or equal and approved

- HETAS Approved Biomass Maintenance Scheme

- HETAS Approved Chimney Sweep

- MCS Accreditation

- Combustion Engineering Association

- Wood Fuel Quality Assurance (WFQA)

- Forest Stewardship Council (FSC)

- UK Pellet Council

Bidder to ensure that the contractor’s engineers assigned to the contract shall be trained to the following minimal standards:

- Manufacturer’s Service Engineer training for each of the boilers installed. Where any boiler manufacturer no longer trades, the contractor shall provide a robust alternative for engineer training.

- HETAS H009 Service and Maintenance Training

- HEATS H005/DE Training

three.1.2) Economic and financial standing

List and brief description of selection criteria

As detailed in minimum level(s) of standards required.

Minimum level(s) of standards possibly required

The winning tenderer and its sub-contractor(s) to provide a current copy and have as a minimum:

- 10,000,000 GBP Employers Liability Insurance (where applicable) for each and every claim;

- 10,000,000 GBP Public Liability Insurance for each and every claim;

- 10,000,000 GBP Products Liability Insurance (where applicable) for each and every claim; and

- Third Party Motor Vehicle Liability Insurance to a minimum indemnity limit of 10,000,000 GBP for each and every claim in respect of property damage, without limit to the number of claims, unlimited in respect of personal injury.

The bidder shall provide the organisations audited accounts covering the last financial three (3) years in the business area covered by the Contract;

The Authority will use an independent credit scoring organisation, Creditsafe, to check the financial status of the winning tenderer. To minimise risk of failure, the desired risk score should not be below Moderate Risk as a minimum. The Authority shall take a view on the risk to the Authority should the winning tenderer credit rating fall below this and may involve further detailed financial checking/assessment.

Where it is considered that the additional supporting information does not provide satisfaction that the risk is mitigated, the tenderer shall be disqualified.

three.1.3) Technical and professional ability

List and brief description of selection criteria

As per minimum level(s) of standards required.

Minimum level(s) of standards possibly required

The bidder to provide a copy of -

the organisations current Health and Safety Policy;

- the tenderer must have under the organisations Health and Safety (H&S) procedures a regularly reviewed and documented policy for Health and Safety Management, endorsed by the Chief Executive Officer, or equivalent. The policy must be relevant to the nature and scale of the work and set out responsibilities for H&S management at all levels within the organisation. The policy must be relevant to the nature and scale of your operations and set out your company’s responsibilities of Health and Safety Management and compliance with legislation.

- provide a copy of the organisations current Environmental Management Policy;

- the tenderer must have under the organisations Environmental Management Systems or Standards a regularly reviewed documented policy regarding Environmental Management, authorised by the Chief Executive, or equivalent. This policy must include and describe the bidder’s environmental emergency response procedures, including the preparedness and response procedures for potential accidents and emergency response situations that give rise to significant environmental impacts (for example hazardous substances spill control).

- provide a copy of the organisations current Quality Assurance Scheme and or Quality Management Policy;

- the tenderer must have a documented policy regarding Quality Management. The policy must set out responsibilities for Quality Management demonstrating that the organisation has, and continues to implement, a Quality Management Policy that is authorised by their Chief Executive, or equivalent, which is periodically reviewed at a senior management level. The policy must be relevant to the nature and scale of the work to be undertaken and set out responsibilities for Quality Management throughout the organisation.

The bidder to provide a statement of the relevant supply chain management and/or tracking systems used;

- provide two (2) relevant examples of services carried out in the past three (3) years;

- provide two (2) copies of Risk assessments specifically relating to similar activities currently undertaken;

- provide details of business continuity and contingency proposals for the service required;

- provide details of exit management plan for the service required;

- provide details of current average annual manpower for the last three (3) years;

- provide current details of relevant tools, plant or technical equipment available to deliver the requirements for the services specified.

three.2) Conditions related to the contract

three.2.1) Information about a particular profession

Execution of the service is reserved to a particular profession

Reference to the relevant law, regulation or administrative provision

The bidder to ensure that relevant to the specific work element being undertaken, the contractor and/or any of their sub-contractors shall hold current memberships of the following organisations:

- NIC-EIC; SELECT or equal and approved

- HETAS Approved Biomass Maintenance Scheme

- HETAS Approved Chimney Sweep

- MCS Accreditation

- Combustion Engineering Association

- Wood Fuel Quality Assurance (WFQA)

- Forest Stewardship Council (FSC)

- UK Pellet Council

- Ensure that the contractor’s engineers assigned to the contract shall be trained to the following minimal standards:

- Manufacturer’s Service Engineer training for each of the boilers installed. Where any boiler manufacturer no longer trades, the contractor shall provide a robust alternative for engineer training.

- HETAS H009 Service and Maintenance Training

- HEATS H005/DE Training

three.2.2) Contract performance conditions

Bidders are directed to the Tender Documents which they must comply with.

three.2.3) Information about staff responsible for the performance of the contract

Obligation to indicate the names and professional qualifications of the staff assigned to performing the contract


Section four. Procedure

four.1) Description

four.1.1) Type of procedure

Open procedure

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

The procurement is covered by the Government Procurement Agreement: Yes

four.2) Administrative information

four.2.1) Previous publication concerning this procedure

Notice number: 2021/S 000-016293

four.2.2) Time limit for receipt of tenders or requests to participate

Date

13 July 2023

Local time

12:00pm

four.2.4) Languages in which tenders or requests to participate may be submitted

English

four.2.6) Minimum time frame during which the tenderer must maintain the tender

Duration in months: 4 (from the date stated for receipt of tender)

four.2.7) Conditions for opening of tenders

Date

13 July 2023

Local time

12:00pm

Place

Highland Council

Information about authorised persons and opening procedure

Contracts Team


Section six. Complementary information

six.1) Information about recurrence

This is a recurrent procurement: Yes

Estimated timing for further notices to be published: Please refer to the tender documents.

six.2) Information about electronic workflows

Electronic ordering will be used

Electronic invoicing will be accepted

Electronic payment will be used

six.3) Additional information

NOTE: To register your interest in this notice and obtain any additional information please visit the Public Contracts Scotland Web Site at https://www.publiccontractsscotland.gov.uk/Search/Search_Switch.aspx?ID=700098.

The buyer has indicated that it will accept electronic responses to this notice via the Postbox facility. A user guide is available at https://www.publiccontractsscotland.gov.uk/sitehelp/help_guides.aspx.

Suppliers are advised to allow adequate time for uploading documents and to dispatch the electronic response well in advance of the closing time to avoid any last minute problems.

A sub-contract clause has been included in this contract. For more information see: http://www.publiccontractsscotland.gov.uk/info/InfoCentre.aspx?ID=2363

Community benefits are included in this requirement. For more information see: https://www.gov.scot/policies/public-sector-procurement/community-benefits-in-procurement/

A summary of the expected community benefits has been provided as follows:

Bidders are directed to the tender documents which they must comply with.

(SC Ref:700098)

Download the ESPD document here: https://www.publiccontractsscotland.gov.uk/ESPD/ESPD_Download.aspx?id=700098

six.4) Procedures for review

six.4.1) Review body

Inverness Sheriff Court and Justice of the Peace Court

The Inverness Justice Centre, Longman Road

Inverness

IV1 1AH

Email

inverness@scotcourts.gov.uk

Telephone

+44 1463230782

Country

United Kingdom

Internet address

https://www.scotcourts.gov.uk/the-courts/court-locations/inverness-sheriff-court-and-justice-of-the-peace-court