Works - 263478-2020

05/06/2020    S108

United Kingdom-Reading: Construction work for the oil and gas industry

2020/S 108-263478

Contract notice – utilities

Works

Legal Basis:
Directive 2014/25/EU

Section I: Contracting entity

I.1)Name and addresses
Official name: Thames Water Utilities Ltd
Postal address: Procurement Support Centre - 3rd Floor East, C/O Mail Room, Rose Kiln Court
Town: Reading
NUTS code: UKJ11 Berkshire
Postal code: RG2 0BY
Country: United Kingdom
E-mail: procurement.support.centre@thameswater.co.uk

Internet address(es):

Main address: www.thameswater.co.uk

I.2)Information about joint procurement
The contract is awarded by a central purchasing body
I.3)Communication
Access to the procurement documents is restricted. Further information can be obtained at: https://www.thameswater.co.uk/procurement
Additional information can be obtained from the abovementioned address
Tenders or requests to participate must be submitted electronically via: https://www.thameswater.co.uk/procurement
Tenders or requests to participate must be submitted to the abovementioned address
I.6)Main activity
Water

Section II: Object

II.1)Scope of the procurement
II.1.1)Title:

Biogas Plant and Sale of Biomethane

Reference number: FA1504
II.1.2)Main CPV code
45255000 Construction work for the oil and gas industry
II.1.3)Type of contract
Works
II.1.4)Short description:

In April 2019, we made a pledge to our customers, our shareholders and Ofwat to achieve net zero carbon emissions by 2030, underlining our commitment to mitigate climate change.

We have also set a target of reducing our AMP7 Embodied Carbon Emissions by 25 % compared to AMP6.

Thames Water have 25 sites with an anaerobic digestion process, all of which produce over 800 GWh of biogas. We are keen to utilise this precious commodity to help us achieve our carbon targets. Our sourcing project covers the funding, supply, installation, operation and maintenance of upgrading and compressing plant to produce biomethane which is capable of being transported or injected to grid.

Projects delivered under this framework need to not only help us advance towards our carbon target but also ensure that our excellent health and safety record is not compromised.

Multi-lot applications are welcomed.

II.1.5)Estimated total value
Value excluding VAT: 70 000 000.00 GBP
II.1.6)Information about lots
This contract is divided into lots: yes
Tenders may be submitted for all lots
Maximum number of lots that may be awarded to one tenderer: 4
II.2)Description
II.2.1)Title:

Supply of Biogas Plant

Lot No: 1a
II.2.2)Additional CPV code(s)
45255000 Construction work for the oil and gas industry
45253700 Digestion plant construction work
42123100 Gas compressors
II.2.3)Place of performance
NUTS code: UKI LONDON
NUTS code: UKJ SOUTH EAST (ENGLAND)
Main site or place of performance:

Whole of the Thames Water region.

II.2.4)Description of the procurement:

We are looking for suppliers who will help us utilise biogas in an optimum manner in order to:

(a) improve our environmental performance; and

(b) maximise the value of our biogas.

Each of our sites are slightly different and may require differing solutions depending on their location, biogas composition, energy usage etc.

Depending on the site solution, we may need a combination of upgrading and compressing plant to enable us to transport the biomethane or inject it into the gas grid. This lot covers all requirements, including ancillary equipment such as grid entry units and basic fuel output.

Please note that our biogas is produced from our anaerobic digestion plant and as such contains siloxanes, carbon dioxide and hydrogen sulphide as well as methane. We need upgrade plant that can handle our biogas composition and their variants and produce biomethane that meets grid specifications.

Note that as a main contractor, you will be expected to undertake Principal Design and Principal Contractor roles under CDM.

Also note that the purchaser may be Thames Water Utilities Limited or another company within the Kemble Holding Group (ultimate parent of Thames Water).

Lot 1A will be funded by the purchaser.

Primarily aimed at EPC contractors or OEM entities who may be required to undertake the following works and the like:

1) design plant in order to maximise efficiency and achieve excellent value for money;

2) source plant from reputable suppliers;

3) undertake works on Thames Water operational sites to allow the existing anaerobic digestion plant to be integrated with the upgrading plant;

4) install upgrading and potentially compressor plant in line with TW process standards as well as relevant industry standards;

5) conduct commissioning;

6) operate and maintain system after final handover/commissioning has ended.

You will be expected to guarantee a level of availability of the plant and conversion rate for the gas.

We want to award multi-supplier framework agreements.

We will use the tender process to enable us to award an initial contract under the framework agreement for a specific site, with the opportunity to enter into mini-competitions for other sites during the term of the framework agreement. We reserve the right to invite lot 1 and lot 2 suppliers and/or lot 3 suppliers to participate in mini-competitions depending on the specific business requirements for each project.

Contracts awarded under framework agreements shall be awarded based on specific criteria as detailed in the procurement documents.

The agreement value of GBP 17.5 m given below is a quarter of an estimated value of installing plant on all 25 sites. It is unknown currently how this value will be split between Lot 1A, 1B and 3 as the funding option and risk profile will be decided on a project by project basis.

II.2.5)Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
II.2.6)Estimated value
Value excluding VAT: 17 500 000.00 GBP
II.2.7)Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 96
This contract is subject to renewal: no
II.2.9)Information about the limits on the number of candidates to be invited
Envisaged number of candidates: 6
II.2.10)Information about variants
Variants will be accepted: no
II.2.11)Information about options
Options: yes
Description of options:

Any agreement awarded would be for an initial duration of 3 years with options to extend up to a maximum of 8 years. There will be no commitment to volume and performance against service levels will be measured and reviewed.

II.2.12)Information about electronic catalogues
II.2.13)Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds: no
II.2.14)Additional information
II.2)Description
II.2.1)Title:

Funded Biogas Plant

Lot No: 1b
II.2.2)Additional CPV code(s)
45255000 Construction work for the oil and gas industry
45253700 Digestion plant construction work
42123100 Gas compressors
II.2.3)Place of performance
NUTS code: UKI LONDON
NUTS code: UKJ SOUTH EAST (ENGLAND)
Main site or place of performance:

Whole of the Thames Water region.

II.2.4)Description of the procurement:

We are looking for suppliers who will help us utilise biogas in an optimum manner in order to:

(a) improve our environmental performance; and

(b) maximise the value of our biogas.

Each of our sites are slightly different and may require differing solutions depending on their location, biogas composition, energy usage etc.

Depending on the site solution, we may need a combination of upgrading and compressing plant to enable us to transport the biomethane or inject it into the gas grid. This lot covers all requirements, including ancillary equipment such as grid entry units and basic fuel output.

Please note that our biogas is produced from our anaerobic digestion plant and as such contains siloxanes, carbon dioxide and hydrogen sulphide as well as methane. We need upgrade plant that can handle our biogas composition and their variants and produce biomethane that meets grid specifications. Note that as a main contractor, you will be expected to undertake principal design and principal contractor roles under CDM.

Lot 1B will be funded by a third party.

In addition to the scope of works detailed within Lot 1A, you will also be responsible for the funding of the plants and ownership for 10-20 years through a contract and lease for the plant which will process and enable off-take of gas to the required specification, with ownership of the gas remaining with Thames Water.

At the end of the contract, the installation ownership would transfer to Thames Water or the installation would be removed.

You are expected to operate and maintain the plants throughout the length of your contract.

We expect to pay you based on the availability of your plant and the biogas to biomethane conversion rate you achieve, determined by the contract requirement for which a mini-competition will be held under the framework agreement.

We want to award multi-supplier framework agreements.

We will use the tender process to enable us to award an initial contract under the framework agreement for a specific site, with the opportunity to enter into mini-competitions for other sites during the term of the framework agreement. We reserve the right to invite lot 1 and lot 2 suppliers and/or lot 3 suppliers to participate in mini-competitions depending on the specific business requirements for each project.

Contracts awarded under framework agreements shall be awarded based on specific criteria as detailed in the procurement documents.

The agreement value of GBP 17.5 m given below is a quarter of an estimated value of installing plant on all 25 sites. It is unknown currently how this value will be split between Lot 1A, 1B and 3 as the funding option and risk profile will be decided on a project by project basis.

II.2.5)Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
II.2.6)Estimated value
Value excluding VAT: 17 500 000.00 GBP
II.2.7)Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 96
This contract is subject to renewal: no
II.2.9)Information about the limits on the number of candidates to be invited
Envisaged number of candidates: 6
II.2.10)Information about variants
Variants will be accepted: no
II.2.11)Information about options
Options: yes
Description of options:

Any agreement awarded would be for an initial duration of 3 years with options to extend up to a maximum of 8 years. There will be no commitment to volume and performance against service levels will be measured and reviewed.

II.2.12)Information about electronic catalogues
II.2.13)Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds: no
II.2.14)Additional information
II.2)Description
II.2.1)Title:

Sale of Biomethane

Lot No: 2
II.2.2)Additional CPV code(s)
09120000 Gaseous fuels
II.2.3)Place of performance
NUTS code: UKI LONDON
NUTS code: UKJ SOUTH EAST (ENGLAND)
Main site or place of performance:

Whole of the Thames Water region.

II.2.4)Description of the procurement:

This lot is all about what you can do with the biomethane in order to generate maximum value for us.

The supplier will be required to work closely with biogas plant, grid injection and the like in order to generate and share value achieved.

If you are proposing collecting the biomethane from site, you should consider whether storage is required and bear in mind that our biogas production may be 24/7/365 and so collection should be the same.

We are looking to enter into a framework agreement with multiple potential buyers under which individual site specific opportunities will be competed.

We will use the tender process to enable us to award an initial contract under the framework agreement for a specific site, with the opportunity to enter into mini-competitions for other sites during the term of the framework agreement. we reserve the right to invite lot 1 and lot 2 suppliers and/or lot 3 suppliers to participate in mini competitions depending on the specific business requirements for each project.

Contracts awarded under framework agreements shall be awarded based on specific criteria as detailed in the procurement documents.

The purchaser expects to award long term contracts on a project by project basis.

Due to this being a revenue generating lot, a value of GBP 1 has been given in section II.2.6).

II.2.5)Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
II.2.6)Estimated value
Value excluding VAT: 1.00 GBP
II.2.7)Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 96
This contract is subject to renewal: no
II.2.9)Information about the limits on the number of candidates to be invited
Envisaged number of candidates: 5
II.2.10)Information about variants
Variants will be accepted: no
II.2.11)Information about options
Options: yes
Description of options:

Any agreement awarded would be for an initial duration of 5 years, with options to extend in blocks up to a maximum overall term of 8 years.

II.2.12)Information about electronic catalogues
II.2.13)Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds: no
II.2.14)Additional information
II.2)Description
II.2.1)Title:

Combined Biogas Plant and Sale of Biomethane

Lot No: 3
II.2.2)Additional CPV code(s)
09120000 Gaseous fuels
45253700 Digestion plant construction work
42123100 Gas compressors
II.2.3)Place of performance
NUTS code: UKI LONDON
NUTS code: UKJ SOUTH EAST (ENGLAND)
Main site or place of performance:

Whole of the Thames Water region.

II.2.4)Description of the procurement:

This lot allows bidders to apply to offer us complete solutions for sites, combining lots 1b and 2 giving bidder responsibility from the digester plant outlet to the generation of revenue from the selling of the biomethane.

We are looking to enter into a framework agreement with multiple providers.

We will use the tender process to enable us to award an initial contract under the framework agreement for a specific site, with the opportunity to enter into mini-competitions for other sites during the term of the framework agreement. We reserve the right to invite lot 1 and lot 2 suppliers and/or lot 3 suppliers to participate in mini competitions depending on the specific business requirements for each project.

Contracts awarded under framework agreements shall be awarded based on specific criteria as detailed in the procurement documents.

Thames Water expects to award the long term contracts under the framework agreement of 10-20 years on a project by project basis.

Due to this being a revenue generating lot, a value of GBP 1 has been given in section II.2.6).

II.2.5)Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
II.2.6)Estimated value
Value excluding VAT: 1.00 GBP
II.2.7)Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 96
This contract is subject to renewal: no
II.2.9)Information about the limits on the number of candidates to be invited
Envisaged number of candidates: 5
II.2.10)Information about variants
Variants will be accepted: no
II.2.11)Information about options
Options: yes
Description of options:

Any agreement awarded would be for an initial duration of 5 years, with options to extend in blocks up to a maximum overall term of 8 years.

II.2.12)Information about electronic catalogues
II.2.13)Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds: no
II.2.14)Additional information

Section III: Legal, economic, financial and technical information

III.1)Conditions for participation
III.1.1)Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers
List and brief description of conditions:

As detailed in the PQQ.

III.1.2)Economic and financial standing
Selection criteria as stated in the procurement documents
III.1.3)Technical and professional ability
Selection criteria as stated in the procurement documents
III.1.4)Objective rules and criteria for participation
List and brief description of rules and criteria:

As detailed in section VI.3) and PQQ.

III.1.5)Information about reserved contracts
III.1.6)Deposits and guarantees required:

Bonds and -or parent company guarantees of performance and financial standing may be required.

III.1.7)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:

Specified in the ITN document.

III.1.8)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:

Consortia may be required to form a legal entity prior to award.

III.2)Conditions related to the contract
III.2.2)Contract performance conditions:

As detailed in the ITN.

III.2.3)Information about staff responsible for the performance of the contract

Section IV: Procedure

IV.1)Description
IV.1.1)Type of procedure
Negotiated procedure with prior call for competition
IV.1.3)Information about a framework agreement or a dynamic purchasing system
The procurement involves the establishment of a framework agreement
Framework agreement with several operators
Envisaged maximum number of participants to the framework agreement: 8
IV.1.4)Information about reduction of the number of solutions or tenders during negotiation or dialogue
Recourse to staged procedure to gradually reduce the number of solutions to be discussed or tenders to be negotiated
IV.1.6)Information about electronic auction
IV.1.8)Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: no
IV.2)Administrative information
IV.2.1)Previous publication concerning this procedure
IV.2.2)Time limit for receipt of tenders or requests to participate
Date: 22/06/2020
Local time: 12:00
IV.2.3)Estimated date of dispatch of invitations to tender or to participate to selected candidates
IV.2.4)Languages in which tenders or requests to participate may be submitted:
English
IV.2.6)Minimum time frame during which the tenderer must maintain the tender
Duration in months: 12 (from the date stated for receipt of tender)
IV.2.7)Conditions for opening of tenders

Section VI: Complementary information

VI.1)Information about recurrence
This is a recurrent procurement: no
VI.2)Information about electronic workflows
Electronic invoicing will be accepted
VI.3)Additional information:

All suppliers who wish to respond to this notice must request a pre-qualification questionnaire (PQQ) by using the link in Section I.3 of this notice, i.e. https://www.thameswater.co.uk/procurement.

VI.4)Procedures for review
VI.4.1)Review body
Official name: Thames Water Utilities Ltd
Town: Reading
Country: United Kingdom
VI.4.2)Body responsible for mediation procedures
VI.4.3)Review procedure
Precise information on deadline(s) for review procedures:

Thames Water Utilities Ltd will incorporate a standstill period at the point information on the award of the contract is communicated to tenderers. That notification will provide full information on the award decision. The standstill period, which will be for a minimum of 10 calendar days, provides time for unsuccessful tenderers to challenge the award decision before the contract is entered into.

The Utilities Contracts Regulations 2016 provide for aggrieved parties who have been harmed or are at risk of harm by a breach of the rules to take action in the High Court (England, Wales and Northern Ireland).

VI.4.4)Service from which information about the review procedure may be obtained
Official name: Thames Water Utilities Ltd
Town: Reading
Country: United Kingdom
VI.5)Date of dispatch of this notice:
02/06/2020