Scope
Reference
FA2277
Description
This procurement relates to the supply, commissioning and maintenance support of Combined Heat and Power (CHP) engines across multiple Thames Water wastewater treatment sites to maximise engine availability / performance. The scope includes the provision of new CHP units and associated services to support operational efficiency and energy recovery, as well as spare parts stock holding and technical support.
Objectives and Expected Outcomes
Effective utilisation of the biogas produced during the treatment of sludge, minimising flaring of gas, maximising electrical heat and power production
• Securing Capacity: Ensure supply of CHP Engine requirement through AMP 8 and AMP 9
• Standardisation: Promote consistency across the CHP estate to reduce complexity and improve asset availability
• Commercial Value: Leverage volume-based incentives and long-term value through strategic sourcing
• Serviceability: Ensure availability of cost-effective spare parts and technical support
• Efficiency & Sustainability: Support energy recovery and carbon reduction goals by securing high-performance, low-emission CHP solutions
• Regulatory Changes: Ensure compliance with evolving regulatory requirements
• Innovation: Accommodate benefits from innovation
Procurement Approach: A competitive tender process will be undertaken to appoint a supplier capable of delivering the full scope. We anticipate awarding the contract to a single supplier but reserve the right to award to more than one supplier if it is deemed to deliver best value.
Background: Thames Water (TW) currently operates 47 Combined Heat and Power Engines (CHP) across 24 wastewater treatment sites. These engines vary in age, size and output, and many are approaching the end of their lifecycle (typically 20 years).
Anticipated Requirements:
• Replacement of end-of-life engines during AMP 8 with estimated 10 - 16 new engines (Estimated range between 100kW - 1500kW electrical output) expected to be installed within AMP 8 alone. Further new engines will be required for AMP 9
• Specification: to be provided at PSQ
• Support innovation: We are always looking for ways to improve what we do, and welcome innovative ideas/solutions
• Compliance with evolving environmental regulations, especially around emissions to air (e.g. methane slip and possible carbon capture under the Industrial Emissions Directive)
• Integration of AMP 9 requirements, to leverage further standardisation and volume-based discounts: The engines on an additional 7 wastewater treatment sites planned to be upgraded in AMP 9
What we anticipate purchasing
TW is seeking to procure a comprehensive solution for CHP engines, which includes:
• Supply, installation, and commissioning of new CHP engines across the TW estate
• Ancillary components required for engine connection and operation
• Provision of spare parts to support ongoing maintenance
• Planned and reactive maintenance in line with the manufacturers O&M manual
• Technical support to ensure safe and efficient operation through the lifecycle of the asset
The procurement will cover both replacement of end-of-life engines and new installations to meet growing demand. The current aim is to award a single-source agreement to enable standardisation, improve serviceability, and reduce complexity across the estate.
Please note that that deadline for asking for access to the PSQ & submitting of the PSQ is 28th November 2025, at 10 am.
Commercial tool
Establishes a framework
Total value (estimated)
- £0 including VAT
Above the relevant threshold
Contract dates (estimated)
- 1 June 2026 to 30 May 2034
- 7 years, 11 months, 30 days
Main procurement category
Goods
CPV classifications
- 34311110 - Spark-ignition engines
- 42110000 - Turbines and motors
- 42510000 - Heat-exchange units, air-conditioning and refrigerating equipment, and filtering machinery
- 50530000 - Repair and maintenance services of machinery
Contract locations
- UKI - London
- UKJ - South East (England)
Framework
Maximum number of suppliers
Unlimited
Maximum percentage fee charged to suppliers
0%
Framework operation description
This framework agreement establishes the terms under which contracting authorities may award future call-off contracts for the provision of Combined Heat and Power Engines. It is designed to ensure transparency, value for money, and fair competition in accordance with the Procurement Act 2023.
Price Determination
Prices under this framework may be determined through one or more of the following mechanisms:
• Pre-agreed rate cards: Suppliers submit fixed or benchmarked rates for defined roles or services at the framework stage
• Scenario testing: Contracting authorities may model pricing across different service configurations to assess cost-effectiveness
• Negotiation levers: Prior to award, authorities may negotiate discounts, rebates, offshoring commitments, or payment profiling to optimise commercial outcomes
Award of Contracts
Contracts awarded under this framework will follow:
• Direct Award: Where the framework is with a single supplier or where the framework clearly defines the call-off terms and includes an objective mechanism for supplier selection
The framework will be awarded based on the Most Advantageous Tender (MAT), taking into account price, quality, and other relevant criteria as defined.
Award method when using the framework
Without competition
Contracting authorities that may use the framework
Establishing party only
Participation
Particular suitability
Small and medium-sized enterprises (SME)
Submission
Enquiry deadline
7 November 2025, 5:00pm
Submission type
Tenders
Tender submission deadline
28 November 2025, 10:00am
Submission address and any special instructions
To gain access to the PSQ documents, please fill out the details from this form;
Tenders may be submitted electronically
Yes
Languages that may be used for submission
English
Award decision date (estimated)
30 March 2026
Award criteria
| Name | Type | Weighting |
|---|---|---|
| Technical | Quality | 60% |
| Commercial | Quality | 40% |
Other information
Conflicts assessment prepared/revised
Yes
Procedure
Procedure type
Competitive flexible procedure
Special regime
Utilities
Competitive flexible procedure description
The procurement will follow a Competitive Flexible Procedure in line with the Procurement Act 2023. The process will include multiple stages, with opportunities for clarification, negotiation, and refinement of award criteria before final contract award.
Stage 1: Tender Notice Publication
• The process begins with the publication of the Contract Notice on the Find a Tender Service (FTS)
• This will outline the scope of requirements, procurement stages, and timelines
Stage 2: Pre-Specific Questionnaire (PSQ)
• PSQ Publication: The PSQ will be published alongside the contract notice
• Supplier Response: Suppliers will complete and submit the PSQ by the stated deadline
• Clarification Period: A defined window will allow suppliers to raise queries and Thames Water to provide clarifications
• Evaluation: PSQ responses will be assessed on a pass/fail basis against mandatory criteria
• Outcome: Successful suppliers will be shortlisted and invited to the next stage
Stage 3: Preliminary Tender Submission
• Issue of Documents: Shortlisted suppliers will receive the full information pack
• Clarification: Suppliers submit any clarification questions to the tender. TW will answer
• Submissions: Suppliers submit bid submissions (technical and commercial proposals)
• Clarification and Questions: TW submit clarifications and questions to the supplier responses
• Evaluation: Submissions are assessed against published criteria
Stage 4: Negotiation Stage
• Shortlisted suppliers will receive invitations to negotiate and further information about the process
• Negotiation and Refinement: Negotiations with suppliers to refine solutions and optimise value
• Updated Submissions: Suppliers to submit revised bids following negotiation rounds
Stage 5: Final Evaluation and Selection
• Evaluation: Final submissions are evaluated against weighted criteria
Stage 6: Contract Award
• Notification: Successful and unsuccessful suppliers will be informed in writing
• Standstill Period: A mandatory standstill period will apply before contract signature
• Contract Execution: Following standstill, the contract will be awarded and signed
Contracting authority
THAMES WATER UTILITIES LIMITED
- Companies House: 02366661
- Public Procurement Organisation Number: PNQQ-4647-DTCV
Clearwater Court
Reading
RG1 8DB
United Kingdom
Region: UKJ11 - Berkshire
Organisation type: Private utility