Section one: Contracting authority
one.1) Name and addresses
London Borough of Havering
Town Hall, Main Road
Romford
RM1 3BB
Contact
Shelley Wood
Telephone
+44 7342933523
Country
United Kingdom
Region code
UKI - London
Internet address(es)
Main address
Buyer's address
https://uk.eu-supply.com/ctm/Company/CompanyInformation/Index/131121
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
London Borough of Havering - Strategic Heating Partner
Reference number
L103
two.1.2) Main CPV code
- 45300000 - Building installation work
two.1.3) Type of contract
Works
two.1.4) Short description
LB of Havering have successfully awarded a contract to K&T Heating to be their strategic heating partner to:
a) Deliver servicing, maintenance and ad-hoc replacements of domestic and commercial wet heating systems
b) Work jointly with Havering to deliver a heating strategy and future Tasks and services to incorporate electric, alternative fuel and renewable systems
The contract is for an initial term of 9 years 7 months to 31st March 2035 with a optional 5 year extension to 2040, the estimated value for the initial term is £60,000,000. The full estimated value of £140,000,000 includes the extension taking the contract to 2040.
two.1.6) Information about lots
This contract is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Value excluding VAT: £140,000,000
two.2) Description
two.2.2) Additional CPV code(s)
- 45000000 - Construction work
- 45300000 - Building installation work
- 45310000 - Electrical installation work
- 45321000 - Thermal insulation work
- 45330000 - Plumbing and sanitary works
- 45331100 - Central-heating installation work
- 50500000 - Repair and maintenance services for pumps, valves, taps and metal containers and machinery
- 50510000 - Repair and maintenance services of pumps, valves, taps and metal containers
- 50700000 - Repair and maintenance services of building installations
- 50710000 - Repair and maintenance services of electrical and mechanical building installations
- 50721000 - Commissioning of heating installations
two.2.3) Place of performance
NUTS codes
- UKI - London
two.2.4) Description of the procurement
Following a Competitive Dialogue procedure, London Borough of Havering have successfully awarded a Contract to K&T Heating to be their strategic heating partner to:
a) Deliver servicing, maintenance and ad-hoc replacements of domestic and commercial wet heating systems
b) Work jointly with Havering to deliver a heating strategy and future Tasks and services to incorporate electric, alternative fuel and renewable systems
The core services of this Contract comprise the following:
a) Servicing, maintenance and ad-hoc replacements to 8,239 domestic heating systems
b) Servicing, maintenance and ad-hoc replacements to 77 commercial heating systems
c) Installation and ongoing servicing and maintenance of alternative heating systems.
Due to the volume of developing technologies in the area of heating systems, and the speed at which these technologies are becoming feasible, there is a requirement for the Service Provider to work with Havering and the other parties within the Strategic Partnering Alliance to deliver the best solutions for Havering and its residents.
As Havering’s decarbonisation strategy evolves and alternative heating technologies evolve in parallel with it, it is anticipated that a product of a successful partnership will be year on year increases in the rate of replacement of current gas heating systems with alternative systems. It is also anticipated that this will be through a combination of direct delivery, by newly skilled operatives trained within the partnership, and specialist subcontractors.
As technologies, products, legislation and funding opportunities evolve, the service provider will be required to evolve the skills of its workforce, supply chain and installation methods in order to continuously provide and demonstrate best value. To enable this, the pricing mechanisms under the contract are designed to provide a method for the derivation of new prices and continuous demonstration of best value as a result of any changes to the specification. The contract includes a mechanism for the parties to agree variations to the specification to reflect new and emerging technology, products, legislation and funding opportunities. The long term continuation of the contract, for example through contract extension, is intended to be predicated on the service provider's success in meeting all of these requirements
The successful Provider has entered into a TAC-1 Term Alliance Contract (with break clauses) for an initial term of 9 years and 7 months, with a possible extension until 31st March 2040.
Havering has followed the competitive dialogue procurement procedure in accordance with the Public Contracts Regulations 2015.
Following completion of the Selection Questionnaire and associated appendices prospective bidders were shortlisted with seven bidders being invited to submit Core Proposals.
Following evaluation of the Core Proposals in accordance with the tender documents, prospective bidders were again shortlisted and three bidders were invited to participate in dialogue with Havering.
two.2.5) Award criteria
Quality criterion - Name: Quality / Weighting: 60
Price - Weighting: 40
two.2.11) Information about options
Options: Yes
Description of options
Potential for 6 year contract extension term.
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
Competitive dialogue
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: 2023/S 000-012064
Section five. Award of contract
Contract No
1
Title
London Borough of Havering - Strategic Heating Partner
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
13 September 2024
five.2.2) Information about tenders
Number of tenders received: 3
Number of tenders received by electronic means: 3
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
K&T Heating Services Ltd
669 Woolwich Road
London
SE7 8LH
Telephone
+44 1708758823
Country
United Kingdom
NUTS code
- UK - United Kingdom
National registration number
115159140
Internet address
The contractor is an SME
No
five.2.4) Information on value of contract/lot (excluding VAT)
Total value of the contract/lot: £140,000,000
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
High Court of England and Wales
The Strand
London
WC2A 2LL
Country
United Kingdom
six.4.2) Body responsible for mediation procedures
High Court of England and Wales
The Strand
London
WC2A 2LL
Country
United Kingdom
six.4.3) Review procedure
Precise information on deadline(s) for review procedures
Havering observed a 10 day standstill period following the award of the contract which concluded at midnight on 26th April 2024. Havering has conducted the procurement in accordance with the Public Contracts Regulations 2015 (as amended).
six.4.4) Service from which information about the review procedure may be obtained
Cabinet Office
70 Whitehall
London
SW1A 2AS
Country
United Kingdom