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-secondary-on-plot-contract-notice
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-secondary-on-plot-contract-notice
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 District Heating Network – Secondary Pipework Design and Installation
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 or companies under a Framework Contract (the Contract) to lead the successful design and construction of the on plot district heating systems within the Shawfair area in Midlothian, Scotland. The works for the heat network development will consist of the construction of polymer based district heating networks within the boundary of property development sites over a period of up to eight years, to service residential (and potentially commercial) development units. This will be via a local heat substation or point of connection up to and potentially including the installation of the risers, laterals and Heat Interface Units (HIU) and associated internal infrastructure at or within new buildings. Under the Contract, MEL anticipates connecting approximately three hundred and fifty units per year for over the eight year period, although the number of units instructed under the Contract may be less and will vary year to year depending upon the development programme.
two.1.5) Estimated total value
Value excluding VAT: £14,500,000
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
- 44163120 - Distance-heating pipes
- 45000000 - Construction work
- 45232140 - District-heating mains construction work
- 45251000 - Construction works for power plants and heating plants
- 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 mixed use residential and commercial development in Midlothian, Scotland. A local Energy from waste plant (EfW) has been identified as the primary source of heat for a district heat network to serve the development area.
This project aims to connect the primary District Heating Network (DHN) to an energy centre, which will then supply heat from the EfW to local heat substations or connection points to residential and potentially commercial development sites in and around the Shawfair area. The design and build works relating to the primary DHN and the energy centre are being procured under a separate contract notice.
The heat is to be transported via a polymer based pipe from points of connection (valve set at the boundary of the development plot, or heat substation) to an estimated 2900 properties (proposed Shawfair Town development). The development is at present anticipated to be split into 10 to 15 separate development areas, each of which may contain a number of discrete plots. The project is new build.
MEL's intention is to appoint a single contractor under the Contract. However MEL reserves the right to appoint more than one contractor.
It is anticipated that the scope for each call off under the Contract will be instructed on a site by site basis and will include (but is not limited to) design and build of the polymer based pipe secondary DHN from a point of connection at the boundary of the development area up to and potentially within each building, including:
- Design (RIBA 2 – RIBA 6 requirements) and CDM compliance (Contractor and Designer roles).
- Supply and installation of polymer based pre-insulated pipe DHN within preformed trenches.
- Supply and installation of risers within property to the heat interface unit (HIU).
- Supply and installation of Automated Meter Reading (AMR) system field devices as specified by MEL (responsibility for procurement of field devices will be confirmed within the negotiation procedure).
- Pressure testing and commissioning including flushing, first fill, and balancing.
- Provision of all manuals, certification and training compliant with practical completion, Operations and Maintenance Manual and Health and Safety file.
The scope may also include the installation & supply of risers and laterals, HIU and Heat Meter (MID004 class 2 compliant).
All works shall comply with the technical specification issued by MEL, original equipment manufacturer (OEM) installation requirements, statutory requirements and good industry practice.
The Contract will contain options for MEL to instruct the successful contractor to price and carry out the design and build of secondary network extensions to new customers in or around the Shawfair area beyond the initial scope listed.
MEL reserves the right to benchmark the price of any 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: £14,500,000
two.2.7) Duration of the contract, framework agreement or dynamic purchasing system
Duration in months
96
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 will contain options for MEL to instruct the successful contractor to price and carry out the design and build of secondary network extensions to new customers in or around the Shawfair area beyond the initial scope listed.
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
Dun & Bradstreet Ratios
Insurance
Minimum level(s) of standards possibly required
Bidders will be required to have a yearly turnover of a minimum of 3.6M GBP for each of the last 3 years, and provide 3 year’s audited financial statements
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 and the bidder should submit such proof with their response.
Where bidders cannot demonstrate a yearly turnover of a minimum of 3.6m GBP for each of the last 3 years, and provide 3 year’s audited financial statements or other form of documentation demonstrating that turnover, the bidder may then instead rely on the financial and economic standing of another network operator. Where any bidder is relying on the financial and economic standing of another economic operator (such as a parent or holding company) (guarantor) this MUST be clearly stated and will only be acceptable where: (1) the guarantor completes its own SPD (including Question 4B) in accordance with 2C.1; and (2) a letter of support is provided by the guarantor (i) clearly referencing the bidder as being the entity it is guaranteeing; (ii) providing an undertaking to guarantee the bidder's obligations under the Contract; and (iii) explaining the guarantor's relationship to that economic operator.
MEL will perform a full credit assessment to determine the financial and economic strength of the bidder and any supporting economic operator. Credit assessments will be provided by a third party, Dun & Bradstreet.
To pass the full credit assessment via Dun & Bradstreet, in addition to the minimum yearly turnover, bidders will need to have a Financial Strength of 1A or greater and Risk Indicator of 3 or less. In the event that the bidder cannot demonstrate these levels via Dun & Bradstreet (due to country variations) an equivalent indicator (according to Dun & Bradstreet) will also be acceptable by MEL.
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 = 5 million GBP
- Public & Products Liability Insurance = 5 million GBP
- Professional Indemnity Insurance = 2.5 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.1.3) Information about a framework agreement or a dynamic purchasing system
The procurement involves the establishment of a framework agreement
Framework agreement with a single operator
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
29 December 2021
Local time
3:00pm
four.2.3) Estimated date of dispatch of invitations to tender or to participate to selected candidates
14 January 2022
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=673702.
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:
Details of the community benefit requirements will be included in the procurement documents.
(SC Ref:673702)
six.4) Procedures for review
six.4.1) Review body
Edinburgh Sheriff Court
27 Chambers Street
Edinburgh
EH1 1LB
Country
United Kingdom