Section one: Contracting authority
one.1) Name and addresses
Essex County Council
County Hall, Market Road
Chelmsford
CM1 1QH
Contact
Ms Natasha I-Goldsmith
Natasha.I-Goldsmith2@essex.gov.uk
Country
United Kingdom
Region code
UKH3 - Essex
Internet address(es)
Main address
Buyer's address
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
0942 – Supply of Electricity and Gas utilities to Essex County Council
Reference number
DN585854
two.1.2) Main CPV code
- 09000000 - Petroleum products, fuel, electricity and other sources of energy
two.1.3) Type of contract
Supplies
two.1.4) Short description
Essex County Council is responsible for procuring energy for its core estate and infrastructure – this includes circa 250 operational buildings (including offices, libraries, children’s centres, youth and respite centres, country parks), highways, street lighting and other infrastructure. The number of operational buildings is expected to reduce as the Council’s estate rationalisation programme progresses. The Council has a mix of electricity (half hourly and non-half hourly) and gas meters for its sites and infrastructure.
The Council has procured flexible supply contracts for 2 lots – Lot 1 Electricity and Lot 2 Gas and via an Open procedure procurement exercise. Each Lot was awarded to a single supplier for the contract duration. Each contract will be for an initial term of 3 years (commencing 1st October 2022), with an option to extend for up to a further 3 years, at the Council’s discretion.
Bidders are Ofgem licensed energy suppliers and offer flexible supply contracts, which encompasses the ability to forward purchase the commodity element via a trading desk using OTC (Over the counter) after the contract has been completed. In addition, bidders for Lot 1 Electricity must: (i) be able to provide sleeving arrangements under which any renewable electricity sourced from off-site renewable generators can potentially be included at an additional cost in the electricity supply contract should the Council choose to do so at a later date; and (ii) provide REGO (Renewable Energy Guarantees of Origin) backed renewable energy across the electricity portfolio.
two.1.6) Information about lots
This contract is divided into lots: Yes
two.1.7) Total value of the procurement (excluding VAT)
Value excluding VAT: £51,998,868
two.2) Description
two.2.1) Title
Electricity supply contract - flexible Purchase, combined non hourly and half hourly
Lot No
1
two.2.2) Additional CPV code(s)
- 09310000 - Electricity
two.2.3) Place of performance
NUTS codes
- UKH3 - Essex
two.2.4) Description of the procurement
Key selection criteria, in addition to the Selection Questionnaire, included the product specification, fixed costs, REGO, commission, basic trading requirement, default position, day ahead functionality, reforecasting, payment and process service, account management structure (including supplier meetings), site additions/removals, commodity and non-commodity invoicing, adherence to service level agreements, power purchase agreement requirements, electronic billing, pricing submission, T&Cs, web portal access, billing and volume variation.
Bids were assessed on a 60:40 basis for price:quality (of which 5% of the quality score assessed social value) in accordance with the evaluation and award criteria set out in the tender documents. Tenders were awarded on a most economically advantageous tender basis. All evaluation and award criteria are set out in the tender documents.
Pricing was broken down into half hourly and non-half hourly rates for the commodity (the cost of the energy itself including production, supply and supplier’s margin) and non- commodity charges (including government levies and tax, and transportation and distribution charges).
Quality questions will cover such topics as volume and risk management, invoicing, account management, renewable energy (REGO), environmental sustainability and social value.
Successful suppliers will comply with a service level agreement (which will be included in the tender pack) for the contract duration, which is incorporated into the flexible supply contracts.
two.2.5) Award criteria
Quality criterion - Name: Quality criterion - Name: Qualitative Criteria / Weighting: / Weighting: 35
Quality criterion - Name: Quality criterion - Name: Social Value / Weighting: / Weighting: 5
Price - Weighting: 60
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
two.2) Description
two.2.1) Title
Gas supply contract - flexible Purchase
Lot No
2
two.2.2) Additional CPV code(s)
- 09120000 - Gaseous fuels
two.2.3) Place of performance
NUTS codes
- UKH3 - Essex
two.2.4) Description of the procurement
Key selection criteria, in addition to the Selection Questionnaire, included the product specification, pricing submission, T&Cs, fixed costs, commission, basic trading requirement, default position, day ahead functionality, reforecasting, payment and process service, account management structure (including supplier meetings), site additions/removals, commodity and non-commodity invoicing, adherence to SLAs, electronic billing and web portal access, billing and volume variation.
Bids were assessed on a 60:40 basis for price:quality (of which 5% of the quality score assessed social value) in accordance with the evaluation and award criteria set out in the tender documents. Tenders were awarded on a most economically advantageous tender basis.
Pricing was broken down into appropriate commodity rates for the Supplier (the cost of the energy itself including production, supply and supplier’s margin) and non-commodity charges (including government levies and tax, and transportation and distribution charges), as per the pricing schedule.
Quality questions covered topics such as volume and risk management, invoicing, account management, environmental sustainability and social value.
Successful suppliers will comply with a service level agreement (which will be included in the tender pack) for the contract duration, which is incorporated into the flexible supply contracts.
two.2.5) Award criteria
Quality criterion - Name: Quality criterion - Name: Qualitative Criteria / Weighting: / Weighting: 35
Quality criterion - Name: Quality criterion - Name: Social Value / Weighting: / Weighting: 5
Price - Weighting: 60
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
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: 2022/S 000-006405
Section five. Award of contract
Contract No
DN585854
Lot No
1
Title
Electricity supply contract - flexible Purchase, combined non hourly and half hourly
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
7 June 2022
five.2.2) Information about tenders
Number of tenders received: 3
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
DRAX ENERGY SOLUTIONS LIMITED
Selby
YO8 8PH
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)
Initial estimated total value of the contract/lot: £45,600,000
Total value of the contract/lot: £46,567,626
Section five. Award of contract
Contract No
DN585854
Lot No
2
Title
Gas supply contract - flexible Purchase
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
26 May 2022
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
SSE ENERGY SUPPLY LIMITED
Reading
RG1 3JH
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)
Initial estimated total value of the contract/lot: £4,800,000
Total value of the contract/lot: £5,431,242
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
High Court
Royal Courts of Justice, The Strand
London
WC2A 2LL
Country
United Kingdom
six.4.2) Body responsible for mediation procedures
High Court
Royal Courts of Justice, The Strand
London
WC2A 2LL
Country
United Kingdom