Scope
Description
As part of a wider regeneration scheme, Vattenfall Brent Cross Limited ("Vattenfall") has solely been appointed by the developer to (1) supply heat and (2) to operate and maintain the energy system that provides the heat to 6,500+ homes in the Brent Cross Town Development.
London & Quadrant Housing Trust ("L&Q") have purchased 120 properties within the Brent Cross Town Development and so, a supply of heat agreement is required between L&Q and Vattenfall.
L&Q is making a direct award to Vattenfall under Section 41 of the Procurement Act 2023 because a direct award justification applies and Vattenfall is not an excluded supplier. L&Q considers the following conclusions are met in relation to the public contract and therefore, the direct award justifications set out in Schedule 5(6) and (7) of the Procurement Act 2023 can be relied on:
(a) due to Vattenfall having exclusive rights in respect of the supply of heat to the Brent Cross Town Development, only Vattenfall can supply the services required;
(b) due to an absence of competition for technical reasons, only Vattenfall can supply the services required; and
(c) there are no reasonable alternatives to those services.
The actual value of the contract is currently unknown and cannot be reliably estimated due to the nature of the direct award and the exclusivity of the supplier. For the purposes of this notice, an indicative value has been inserted. L&Q has treated the contract as above threshold to ensure compliance with the Procurement Act 2023.
Contract 1. Supply of Heat Agreement
Supplier
Contract value
- £2,000,000 including VAT
Above the relevant threshold
Award decision date
3 November 2025
Standstill period
- End: 12 November 2025
- 8 working days
Earliest date the contract will be signed
13 November 2025
Contract dates (estimated)
- 13 November 2025 to 30 November 2030
- Possible extension to 30 November 2035
- 10 years, 18 days
Description of possible extension:
This contract does not have a fixed end date as Vattenfall is the sole supplier capable of delivering the required services due to exclusive rights and technical constraints. The contract will remain in effect for as long as these conditions persist and no reasonable alternatives become available.
Main procurement category
Services
Options
The right to additional purchases while the contract is valid.
Yes. The contract includes the right to make additional purchases of the same or similar services from Vattenfall while the contract remains valid, subject to the same justification grounds under Section 41 and Schedule 5(6) and (7) of the Procurement Act 2023.
CPV classifications
- 45331000 - Heating, ventilation and air-conditioning installation work
- 71314000 - Energy and related services
Contract locations
- UK - United Kingdom
Procedure
Procedure type
Direct award
Supplier
Vattenfall Brent Cross Limited
- Companies House: 12504538
5th Floor 70, St Mary Axe
London
EC3A 8BE
United Kingdom
Email: heat.uk@vattenfall.com
Region: UKI31 - Camden and City of London
Small or medium-sized enterprise (SME): No
Voluntary, community or social enterprise (VCSE): No
Supported employment provider: No
Public service mutual: No
Contract 1. Supply of Heat Agreement
Contracting authority
LONDON & QUADRANT HOUSING TRUST
- Companies House: IP030441
- Public Procurement Organisation Number: PJQV-6311-TQXL
29-35 West Ham Lane
London
E15 4PN
United Kingdom
Contact name: Mr Michael Capper
Email: mikecapper@lqgroup.org.uk
Region: UKI41 - Hackney and Newham
Organisation type: Public authority - sub-central government