Contract

Combined Heat and Power (CHP) Upgrade Works

  • NHS Wales Shared Services Partnership-Procurement Services (hosted by Velindre University NHS Trust)

UK7: Contract details notice - Procurement Act 2023 - view information about notice types

Notice identifier: 2025/S 000-081135

Procurement identifier (OCID): ocds-h6vhtk-05d684 (view related notices)

Published 9 December 2025, 3:39pm



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. These works have been awarded to the OEM, Clarke Energy Limited.


Contract 1. Combined Heat and Power (CHP) Upgrade Works

Supplier

Contract value

  • £560,000 excluding VAT
  • £672,000 including VAT

Above the relevant threshold

Date signed

9 December 2025

Contract dates

  • 10 December 2025 to 31 March 2026
  • 3 months, 22 days

Main procurement category

Services

CPV classifications

  • 50532400 - Repair and maintenance services of electrical distribution equipment

Contract locations

  • UKL22 - Cardiff and Vale of Glamorgan

Justification for not setting key performance indicators

Not Applicable

Signed contract documents

Acceptance of Contract Letter - CHP Upgrade Works.docx.pdf

Award Letter


Other information

Conflicts assessment prepared/revised

Yes


Procedure

Procedure type

Direct award

Special regime

Utilities

Direct award justification

  • Single supplier - technical reasons
  • 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

Region: UKD71 - East Merseyside

Small or medium-sized enterprise (SME): No

Voluntary, community or social enterprise (VCSE): No

Supported employment provider: No

Public service mutual: No

Contract 1. Combined Heat and 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 3UZ

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