Section one: Contracting entity
one.1) Name and addresses
Midlothian Energy Limited (MEL)
The Tun Building, 4 Jackson's Entry, Holyrood Road
Edinburgh
EH8 8PJ
Country
United Kingdom
NUTS code
UKM73 - East Lothian and Midlothian
Internet address(es)
Main address
https://heat.vattenfall.co.uk/
Buyer's address
https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA30527
one.3) Communication
The procurement documents are available for unrestricted and full direct access, free of charge, at
https://heat.vattenfall.co.uk/shawfair-design-and-build-prequalification
Additional information can be obtained from the above-mentioned address
Tenders or requests to participate must be submitted electronically via
https://heat.vattenfall.co.uk/shawfair-design-and-build-prequalification
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
Shawfair Energy Centre & District Heating Network
two.1.2) Main CPV code
- 45232140 - District-heating mains construction work
two.1.3) Type of contract
Works
two.1.4) Short description
MEL is seeking to procure a suitably experienced company to lead the successful design and construction of a heat network for the Shawfair area in Midlothian, Scotland. The heat network development will consist of a connection to a local Energy from Waste Plant, the construction of an Energy Centre complete with back-up boiler plant, District Heating Networks (DHN) and heat substations.
two.1.5) Estimated total value
Value excluding VAT: £20,000,000
two.1.6) Information about lots
This contract is divided into lots: No
two.2) Description
two.2.2) Additional CPV code(s)
- 09300000 - Electricity, heating, solar and nuclear energy
- 09323000 - District heating
- 38551000 - Energy meters
- 42515000 - District heating boiler
- 44163120 - Distance-heating pipes
- 45000000 - Construction work
- 45232140 - District-heating mains construction work
- 45251000 - Construction works for power plants and heating plants
- 45251250 - District-heating plant construction work
- 71311000 - Civil engineering consultancy services
- 71314000 - Energy and related services
- 71314310 - Heating engineering services for buildings
- 71700000 - Monitoring and control services
two.2.3) Place of performance
NUTS codes
- UKM73 - East Lothian and Midlothian
Main site or place of performance
Shawfair
two.2.4) Description of the procurement
Shawfair is a new mix use residential and commercial development in Midlothian, Scotland. A local Energy from Waste plant (EfW) has heat of up to 95°C available as a by-product of its operations for the development area.
This project aims to connect the EfW waste heat to the development and to create a sustainable District Heating Network for the wider Midlothian area.
The heat is to be transported from the EfW to an Energy Centre (EC), from where the heat disperses into a District Heating Network (DHN). The capacity of the DHN will be about 16.5MW. The DHN will connect to both residential units and mixed use space including office, retail and community space.
When heat from the EfW is not available, it must be created at the EC. The EC will be fitted with boilers, thermal stores and other general equipment required for DHN operation, such as pressure keeping, and water quality control. It will also house the control system of the entire network.
Steel based district heating pipes will form the primary network that feeds the warm water to Heat Substations, where the water is hydraulically separated from secondary networks. The Secondary Off Plot networks will be polymer based district heating networks that transport warm water to the boundary of development plots.
NOTE : All Secondary On Plot DHN Networks are for the plot developer to coordinate the connection to all dwellings including the interfaces with the dwellings. This does not form part of this scope.
The build programme for the works included in this contract notice will be approximately 24 months.
The project is new build.
It is anticipated that the contract scope shall include (but is not limited to) design and build of:
- Pipework and connections to EfW heat offtake system
- Energy Centre
- Electrical installation, instrumentation and controls
- Primary DHN Spine
- Initial Heat Sub Stations across wider plot development area
- Initial Off Plot Secondary district heating pipework
The contract will contain options for MEL to instruct the successful contractor to price and carry out the design and build of network extensions to new customers beyond the initial scope listed.
MEL reserves the right to benchmark the price of and additional works under a separate contract notice and potentially award those works to others.
two.2.5) Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
two.2.6) Estimated value
Value excluding VAT: £20,000,000
two.2.7) Duration of the contract, framework agreement or dynamic purchasing system
Duration in months
24
This contract is subject to renewal
No
two.2.9) Information about the limits on the number of candidates to be invited
Envisaged number of candidates: 6
Objective criteria for choosing the limited number of candidates:
Following a prequalification process, a shortlist of participants will be invited to participate in the invitation to negotiate (ITN) process. The intention is that the candidates that comply with all the Exclusion Criteria and with the 6 highest scores will be invited to participate in the ITN process. MEL reserves the right to invite less candidates than the envisaged number of candidates listed above should less than 6 candidates meet the Exclusion Criteria in the prequalification document instructions or should MEL receive less than 6 responses. The objective criteria for choosing the shortlisted candidates are set out in the prequalification document instructions which can be accessed as described in section I.3.
two.2.10) Information about variants
Variants will be accepted: No
two.2.11) Information about options
Options: Yes
Description of options
The contract value stated above includes a current estimated value for the phase 1 project (capital expenditure of an estimate 20 million GBP). The contract will contain options for MEL to instruct the successful contractor to price and carry out the design and build of network extensions to new customers beyond the initial scope as listed above but estimated to consist of:
- AdditionalPlant Rooms within an adjacent location (excluding civils and utilities)
- Additional Heat Sub Stations across wider plot development area (up to ~4MWth, excluding civils and utilities)
- Additional Primary DHN Spine
- Additional Off Plot Secondary district heating pipework
- Additional Electrical installation, instrumentation and controls
MEL estimates an allowance of a further 5 million GBP for the value of any network extensions that may be instructed at MEL's option.
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.1.2) Economic and financial standing
List and brief description of selection criteria
Minimum Turnover
Financial Ratio
Insurance
Minimum level(s) of standards possibly required
Bidders will be required to have a yearly turnover of a minimum of 43m GBP for each of the last 3 years.
Where, for any valid reason, the bidder does not have 3 year’s audited financial statements available, MEL may accept other forms of documentation which it considers acceptable as proof.
Where any bidder is relying on the financial and economic standing of another economic operator this must be clearly stated and will only be acceptable where: (1) the economic operator which is being relied on completes its own SPD (including Question 4B) in accordance with 2C.1; and (2) a letter of support is provided by the economic operator being relied on clearly referencing (i) the economic operator it is guaranteeing; (ii) providing an undertaking to guarantee that economic operator's obligations under the contract; and (iii) explaining the guarantor's relationship to that economic operator.
Bidders will be required to meet the expected value for the financial ratios specified in the table below. These ratios must be calculated from the bidder's last set of audited accounts. If a bidder does not have audited accounts the bidder should provide the ratio from their last set of year end accounts.
Financial Ratios - Calculation - Expected value
Debt ratio - Total liabilities/total assets - < 0.6
Current Ratio - Current assets/current liabilities - > 1.1
It is a requirement of this contract that bidders hold, or can commit to obtain prior to the commencement of any subsequently awarded contract, the types and levels of insurance indicated below:
Minimum Insurance Level Requirements
- Employer’s Liability Insurance = 10 million GBP
- Public & Products Liability Insurance = 10 million GBP
- Professional Indemnity Insurance = 5 million GBP
- Contractors all risk = Contract value
Bidders must also provide the economic and financial standing information required as stated in the Qualification Questionnaire which is part of the tender documents available as noted at I.3.
three.1.3) Technical and professional ability
Selection criteria as stated in the procurement documents
three.1.4) Objective rules and criteria for participation
List and brief description of rules and criteria
Please see Qualification Questionnaire which is part of the tender documents available as noted at I.3.
three.1.6) Deposits and guarantees required
As per question 6.4 in the Qualification Questionnaire. Guarantee values are to be confirmed at invitation to negotiate stage
three.1.7) Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them
To be confirmed at invitation to negotiate stage.
three.1.8) Legal form to be taken by the group of economic operators to whom the contract is to be awarded
The company is willing to accept responses from single operators or operators acting in a consortium (whether or not the consortium form a special purpose vehicle). Where multiple operators are forming a consortium to submit a tender response, responses to the PQQ must:
1. include technical, professional and financial information for each member of any consortium;
2. explain the legal form any operators acting as a consortium intend to take; and
3. include for joint and several liability between the consortium members and demonstrate sufficient financial security in relation to the group’s response.
three.2) Conditions related to the contract
three.2.2) Contract performance conditions
To be confirmed in the contract documents to be issued at invitation to negotiate stage
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Negotiated procedure with prior call for competition
four.1.4) Information about reduction of the number of solutions or tenders during negotiation or dialogue
Recourse to staged procedure to gradually reduce the number of solutions to be discussed or tenders to be negotiated
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: No
four.2) Administrative information
four.2.2) Time limit for receipt of tenders or requests to participate
Date
24 September 2021
Local time
12:00pm
four.2.3) Estimated date of dispatch of invitations to tender or to participate to selected candidates
15 October 2021
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: 12 (from the date stated for receipt of tender)
Section six. Complementary information
six.1) Information about recurrence
This is a recurrent procurement: No
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
All dates, timescales and values set out in this notice are estimates only and so subject to change during the tender process, if required. The date and time for tender submission will be confirmed in the invitation to negotiate.
The tender evaluation methodology will be published as part of the invitation to negotiate.
Under the terms of this contract the successful supplier(s) will be required to deliver community benefits in support of the MEL’s economic and social objectives. Accordingly, contract performance conditions may relate in particular to social and environmental considerations. The community benefits included in this contract will be detailed within the invitation to negotiate.
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=663249.
Community benefits are included in this requirement. For more information see: http://www.publiccontractsscotland.gov.uk/info/InfoCentre.aspx?ID=2361
A summary of the expected community benefits has been provided as follows:
Details of the community benefit requirements will be included in the procurement documents.
(SC Ref:663249)
six.4) Procedures for review
six.4.1) Review body
Edinburgh Sheriff Court
27 Chambers Street
Edinburgh
EH1 1LB
Country
United Kingdom