Section one: Contracting authority/entity
one.1) Name and addresses
Interconnector Services Limited (part of the Mutual Energy Group)
85 Ormeau Road
BELFAST
BT71SH
Contact
Hannah Keery
Hannah.Keery@mutual-energy.com
Telephone
+44 2890437508
Country
United Kingdom
Region code
UKN06 - Belfast
Companies House
NI058161
Internet address(es)
Main address
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Communication & Instrumentation Panel Service Provider("CIPSP") Contract
two.1.2) Main CPV code
- 76100000 - Professional services for the gas industry
two.1.3) Type of contract
Services
two.2) Description
two.2.1) Title
Communication & Instrumentation Panel Service Provider("CIPSP") Contract
two.2.3) Place of performance
NUTS codes
- UKN - Northern Ireland
Main site or place of performance
Belfast, Northern Ireland
two.2.4) Description of the procurement at the time of conclusion of the contract:
In 2017, after a competitive tender, Interconnector Services Limited ("ISL") entered into a contract for a Communication & Instrumentation Panel Service Provider ("CIPSP") with Cetix Limited ("Cetix") for an initial mobilisation period of 1 year, followed by a term of 6 years and 3 months, with an option to extend by a maximum of two years. ISL exercised that option and the CIPSP contract is now due to expire on 31st March 2026.
The Contract was procured competively and in accordance with the Utilities Contracts Regulations 2016.
The procedure followed for this procurement process was the Negotiated Procedure with prior call for competition. ISL emphasised that under Regulation 47 Economic Operators should submit a compliant bid in accordance with the Invitation to Negotiate documentation. On completion of the assessment of the ITN ISL confirmed, without reference to the Economic Operators, that they did not wish to avail of the option to negotiate.
The Communications & Instrumentation Panel (CIP) forms part of a wider system that provides for continuous monitoring and operation of the Premier Transmission Pipeline System (PTPS). The CIPSP is required to provide Inspection, Maintenance, Response and Management Services associated with maintaining the Instrumentation and Control Panels. The CIPSP is also required to design and implement the change control process in association with the Maintenance and Emergency Response Contractor (MERC).
two.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession
Duration in months
111
Section four. Procedure
four.2) Administrative information
four.2.1) Contract award notice concerning this contract
Notice number: 2017/S 046-084896
Section five. Award of contract/concession
Contract No
1
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract/concession award decision:
20 July 2017
five.2.2) Information about tenders
The contract/concession has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor/concessionaire
Cetix Limited
Rotherham
Country
United Kingdom
NUTS code
- UK - United Kingdom
Companies House
02184213
The contractor/concessionaire is an SME
No
five.2.4) Information on value of the contract/lot/concession (at the time of conclusion of the contract;excluding VAT)
Total value of the procurement: £918,279
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
High Court of Northern Ireland
Belfast
Country
United Kingdom
Section seven: Modifications to the contract/concession
seven.1) Description of the procurement after the modifications
seven.1.1) Main CPV code
- 76100000 - Professional services for the gas industry
seven.1.3) Place of performance
NUTS code
- UKN - Northern Ireland
Main site or place of performance
Northern Ireland
seven.1.4) Description of the procurement:
In 2017, after a competitive tender, Interconnector Services Limited ("ISL") entered into a contract for a Communication & Instrumentation Panel Service Provider ("CIPSP") with Cetix Limited ("Cetix") for an initial mobilisation period of 1 year, followed by a term of 6 years and 3 months, with an option to extend by a maximum of two years. ISL exercised that option and the CIPSP contract is now due to expire on 31st March 2026.
We have a current requirement to upgrade the metering systems on a number of gas sites which will be a complex and substantial piece of work that the CIPSP provider is best placed to deliver. A number of technical and regulatory drivers are now expediting the requirement to deliver these upgrade works.
Whilst the CIPSP contract covers metering flow computers and Chromatograph services, and because the metering upgrades have been expedited, a meter system change out was not envisaged at the time of the original tender, so is not explicitly mentioned in the contract services. It is anticipated that all replacement works would be completed by September 2027 at the latest.
For this reason we are varying the current contract in order for the required work to be carried out and completed. We believe that the variation benefits from the exemption in Reg. 88(1)(b) UCR and a VEAT notice was published to this effect on 1st August 2024.
seven.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession
Duration in months
18
seven.1.6) Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession:
£2,300,000
seven.1.7) Name and address of the contractor/concessionaire
Cetix Limited
Rotherham
Country
United Kingdom
NUTS code
- UK - United Kingdom
Companies House
02184213
The contractor/concessionaire is an SME
No
seven.2) Information about modifications
seven.2.1) Description of the modifications
Nature and extent of the modifications (with indication of possible earlier changes to the contract):
The meter system upgrade project which has become necessary will involve Cetix (as CIPSP provider) leading the design and change control elements of the project. This is a material piece of work that will involve the replacement of site flow computers, metering elements and associated instruments such as to allow the sites to attain the required level of metering uncertainty across the operational envelope.
The work requires a variation to the original contract in terms of the scope, as well as a variation in relation to the initial contract term to ensure that the metering upgrade works are complete in advance of any new CIPSP contract commencing. The extension to the duration will be until September 2027 .
ISL considers that the variation to the current contract benefits from the exemption outlined in Regulation 88(1)(b) of the Utilities Contracts Regulations. This exemption allows for the non-competitive procurement of additional services that have become necessary, where a change of contractor cannot be made for economic or technical reasons and where such a change would cause significant inconvenience or duplication of costs.
ISL believes the exemption applies here because the incumbent CIPSP has developed intimate knowledge of the logic within the flow computers, chromatograph and PLC's. The Flow computers and chromatograph are being changed as part of this project, and for the new equipment to interface to the existing PLC's, the PLC's will need substantial modifications also. To introduce a third party to replace and work on equipment that is expressly within the responsibility of the CIPSP, would create interface management risks. The incumbent CIPSP is therefore considered the most efficient and lowest risk party to deliver and warrant the design and interface modifications.
It should also be noted that a significant part (£1.7m of the £2.3m) of the additional value of the variation will be competitively tendered, allowing potential relevant providers to bid in for this element of the work.
seven.2.2) Reasons for modification
Need for additional works, services or supplies by the original contractor/concessionaire.
Description of the economic or technical reasons and the inconvenience or duplication of cost preventing a change of contractor:
ISL considers that the variation to the current contract benefits from the exemption outlined in Regulation 88(1)(b) of the Utilities Contracts Regulations. This exemption allows for the non-competitive procurement of additional services that have become necessary, where a change of contractor cannot be made for economic or technical reasons and where such a change would cause significant inconvenience or duplication of costs.
ISL believes the exemption applies here because the incumbent CIPSP has developed intimate knowledge of the logic within the flow computers, chromatograph and PLC's. The Flow computers and chromatograph are being changed as part of this project, and for the new equipment to interface to the existing PLC's, the PLC's will need substantial modifications also. To introduce a third party to replace and work on equipment that is expressly within the responsibility of the CIPSP, would create interface management risks. The incumbent CIPSP is therefore considered the most efficient and lowest risk party to deliver and warrant the design and interface modifications.
It should also be noted that a significant part (£1.7m of the £2.3m) of the additional value of the variation will be competitively tendered, allowing potential relevant providers to bid in for this element of the work.
seven.2.3) Increase in price
Updated total contract value before the modifications (taking into account possible earlier contract modifications, price adaptions and average inflation)
Value excluding VAT: £1,265,000
Total contract value after the modifications
Value excluding VAT: £3,565,000