Scope
Reference
CAV-DIR (25-26) 130
Description
Cardiff and Vale University Health Board (CAVUHB) has had a contract in place for the last 16 years for a Combined Heat and Power (CHP) system. Recently a new maintenance contract has been put in place with the Original Equipment Manufacturer (OEM) as they are the only provider who can undertake works due to the specialised nature of the requirement.
Both of the CHP's have now exceeded a run time of 90,000 hours and therefore a major service upgrade is required. As no overhaul has been undertaken in the previous 16 years, the risk of plant failure is increasing until these works are complete. It is proposed to upgrade one of the two CHP's at present and then run the second CHP on a decreased operating load to reduce the risk of plant failure.
the proposed works are as follows:
• Undertake 90,000 hour service to one CHP.
• Replace control system for aforementioned CHP with latest XT4 system.
• Replace radiator cooling system.
• Miscellaneous works including replacement of all energy meters
Contract 1. Combined Heat Power (CHP) Upgrade Works
Supplier
Contract value
- £560,000 excluding VAT
- £672,000 including VAT
Above the relevant threshold
Earliest date the contract will be signed
10 November 2025
Contract dates (estimated)
- 11 November 2025 to 28 February 2026
- 3 months, 20 days
Main procurement category
Services
CPV classifications
- 50532400 - Repair and maintenance services of electrical distribution equipment
Contract locations
- UKL22 - Cardiff and Vale of Glamorgan
Other information
Description of risks to contract performance
Due to the age of the equipment and with no previous overhaul being undertaken, the costings for the upgrade are only an estimate. Once the contract has started, additional works may be uncovered, which would result in a contract modification being required.
Conflicts assessment prepared/revised
Yes
Procedure
Procedure type
Direct award
Special regime
Utilities
Direct award justification
- Single supplier - technical reasons
- Extreme and unavoidable urgency
- Single supplier - intellectual property or exclusive rights
Clarke Energy implemented the CHP system in 2008 and have since provided all associated maintenance for the system. Due to the complexity of the system and the fact that the CHP's have now run for over 90,000 hours, greatly increasing the risk of plant failure, only the OEM can perform the upgrades due to the relevant experience and knowledge they have gained on implementing and maintaining this system in the past 16 years.
Supplier
Clarke Energy
- Public Procurement Organisation Number: PCCD-1195-RBHR
Power House, Senator Point, South Boundary Road, Knowsley Business Park
Liverpool
L33 7RR
United Kingdom
Email: uk@clarke-energy.com
Region: UKD71 - East Merseyside
Small or medium-sized enterprise (SME): No
Voluntary, community or social enterprise (VCSE): No
Contract 1. Combined Heat Power (CHP) Upgrade Works
Contracting authority
NHS Wales Shared Services Partnership-Procurement Services (hosted by Velindre University NHS Trust)
- Public Procurement Organisation Number: PXWV-6492-CGMN
Woodland House, Maes-Y-Coed Road
Cardiff
CF14 4HH
United Kingdom
Contact name: Harry Davies
Email: Harry.Davies6@wales.nhs.uk
Region: UKL22 - Cardiff and Vale of Glamorgan
Organisation type: Public authority - central government
Devolved regulations that apply: Wales