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
Email: uk@clarke-energy.com
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