Works - 309374-2020

02/07/2020    S126

United Kingdom-Cardiff: District-heating mains construction work

2020/S 126-309374

Contract notice – utilities

Works

Legal Basis:
Directive 2014/25/EU

Section I: Contracting entity

I.1)Name and addresses
Official name: The County Council of the City amd County of Cardiff
Postal address: County Hall, Atlantic Wharf
Town: Cardiff
NUTS code: UKL22 Cardiff and Vale of Glamorgan
Postal code: CF10 4UW
Country: United Kingdom
Contact person: Kevin Shackson
E-mail: Corporate.Procurement@cardiff.gov.uk

Internet address(es):

Main address: www.cardiff.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0422

I.2)Information about joint procurement
I.3)Communication
The procurement documents are available for unrestricted and full direct access, free of charge, at: https://supplierlive.proactisp2p.com
Additional information can be obtained from the abovementioned address
Tenders or requests to participate must be submitted electronically via: https://supplierlive.proactisp2p.com
I.6)Main activity
Other activity: General public services

Section II: Object

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

Cardiff Heat Network (CHN)

Reference number: ERFX1006800
II.1.2)Main CPV code
45232140 District-heating mains construction work
II.1.3)Type of contract
Works
II.1.4)Short description:

The authority is seeking to procure suitably experienced companies to support the successful development of a strategic heat network in Cardiff – the Cardiff Heat Network (‘CHN’).

As part of the project the authority is proposing to create an energy service company (‘ESCO’) for the purposes of entering into the various contracts to design, build, operate and maintain the CHN arising as a result of the procurement process. The ESCO will be a newly created special purpose company which is wholly owned and equity funded by the Council. The ESCO will own the infrastructure as well as operate the CHN and will also be a party to a bulk heat purchase agreement with the operator of the adjacent Trident Park ERF (Viridor). It is expected that funding will also be provided for the project from the Department for Business, Energy and Industrial Strategy (BEIS) Heat Networks Investment Project (HNIP).

II.1.5)Estimated total value
Value excluding VAT: 19 100 000.00 GBP
II.1.6)Information about lots
This contract is divided into lots: yes
Tenders may be submitted for all lots
II.2)Description
II.2.1)Title:

Design and Build of the Distribution Network

Lot No: 1
II.2.2)Additional CPV code(s)
45231110 Pipelaying construction work
45231100 General construction work for pipelines
09323000 District heating
45231112 Installation of pipe system
71322200 Pipeline-design services
09300000 Electricity, heating, solar and nuclear energy
II.2.3)Place of performance
NUTS code: UKL22 Cardiff and Vale of Glamorgan
Main site or place of performance:

Design and build of the distribution network from the existing Trident Park ERF site to the back-up/top-up energy centre and the district heating network.

II.2.4)Description of the procurement:

It is anticipated that lot 1 shall include (but is not limited to):

(a) design and build of the distribution network from the existing Trident Park ERF site to the back-up/top-up energy centre and the district heating network to the phase 1 core scheme. For the avoidance of doubt, this includes design and build of internal distribution networks up to be installed in the phase 1 core scheme customers buildings. Design and build of distribution network extensions to phase 1a customers;

(b) during construction of the network the lot 1 contractor will be required to manage the technical, construction and site interfaces with respect to their works with Viridor and the lot 2 appointed contractor for construction of the back-up/top-up energy centre and the phase 1 core scheme building connections.

The following will not form part of lot 1:

(c) modifications to the steam turbine in the Trident Park ERF plant to enable heat recovery from the plant — this will be carried out by Viridor;

(d) design and construction of the steam to hot water ERF Heat Transfer station (and all steam pipework upstream of this) – this will be carried out by the owner Viridor.

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: 12 400 000.00 GBP
II.2.7)Duration of the contract, framework agreement or dynamic purchasing system
Start: 31/03/2021
End: 31/03/2026
This contract is subject to renewal: no
II.2.9)Information about the limits on the number of candidates to be invited
Envisaged minimum number: 5
Maximum number: 6
Objective criteria for choosing the limited number of candidates:

A shortlist of participants will be drawn up and invited to tender at the ITT stage. The intention is that the participants with the 5 highest scores (or 6 Participants if equal points are scored at fifth place) in each lot will be invited to participate in the negotiation at the ITT stage.

II.2.10)Information about variants
Variants will be accepted: no
II.2.11)Information about options
Options: no
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:

Design and Build of the Back-up/top-up Energy Centre, Utility Interconnections and all Equipment Required there-in

Lot No: 2
II.2.2)Additional CPV code(s)
45231110 Pipelaying construction work
45231100 General construction work for pipelines
09323000 District heating
45231112 Installation of pipe system
71322200 Pipeline-design services
09300000 Electricity, heating, solar and nuclear energy
II.2.3)Place of performance
NUTS code: UKL22 Cardiff and Vale of Glamorgan
II.2.4)Description of the procurement:

It is anticipated that lot 2 shall include (but is not limited to):

(a) design and build of the back-up/top-up energy centre, utility interconnections and all equipment required there-in, included but not limited to boilers, thermal stores and all ancillary plant and equipment;

(b) design and build of the thermal sub-stations in each of the building connections. Design and build of thermal sub-stations for buildings connected as part of Phase 1a distribution network extensions;

(b) operation, maintenance and repair/replacement services with respect to:

(i) the distribution network from the existing Trident Park ERF site to the back-up/top-up energy centre and the district heating network and connections to the phase 1 core scheme, as well as future network extensions to phase 1a customers;

(ii) back-up/top-up energy centre, utility interconnections and all equipment required there-in, including boilers and thermal stores;

(iii) Internal distribution networks up to and including the phase 1 core scheme customers’ thermal substations and meters, together with the same for future network extensions to phase 1a customers;

(c) planned and reactive maintenance of above plant and where necessary repairs and replacement;

(d) performance monitoring and reporting;

(e) optimisation of plant operation to maximise the use of waste heat sources and minimise the use of heat required from the back up gas fired boilers;

(f) collation of meter readings for passing to the authority's ESCo and support with billing as requested;

(g) customer interface with the authority with respect to operational issues;

(h) customer interface with consumers when visiting and working in properties:

(i) the lot 2 contractor will need to ‘take over’ the assets constructed by the lot 1 contractor and follow the procedures set out in the tender documents to achieve this which will include a design review process.

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: 6 700 000.00 GBP
II.2.7)Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 120
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
Objective criteria for choosing the limited number of candidates:

A shortlist of participants will be drawn up and invited to tender at the ITT stage. The intention is that the participants with the 5 highest

Scores (or 6 participants if equal points are scored at fifth place) in each lot will be invited to participate in the negotiation at the ITT stage.

II.2.10)Information about variants
Variants will be accepted: no
II.2.11)Information about options
Options: no
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:

Design, Build, Operate and Maintain District Heating Network

Lot No: 3
II.2.2)Additional CPV code(s)
45231110 Pipelaying construction work
45231100 General construction work for pipelines
09323000 District heating
45231112 Installation of pipe system
71322200 Pipeline-design services
09300000 Electricity, heating, solar and nuclear energy
II.2.3)Place of performance
NUTS code: UKL22 Cardiff and Vale of Glamorgan
II.2.4)Description of the procurement:

For clarity, lot 3 comprises the works and services in both lot 1 and lot 2. On the basis of the objective criteria set out in the procurement documents, the authority will either enter into separate contracts for lots 1 and 2, or a single contract for all requirements under lot 3. should a lot 3 participant be successful they shall be responsible for managing the interface between the works and services to be provided in this contract.

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: 19 100 000.00 GBP
II.2.7)Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 120
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
Objective criteria for choosing the limited number of candidates:

A shortlist of participants will be drawn up and invited to tender at the ITT stage. The intention is that the participants with the 5 highest

Scores (or 6 participants if equal points are scored at fifth place) in each lot will be invited to participate in the negotiation at the ITT stage.

II.2.10)Information about variants
Variants will be accepted: no
II.2.11)Information about options
Options: no
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
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
III.1.5)Information about reserved contracts
III.1.6)Deposits and guarantees required:
III.1.7)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:
III.1.8)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:
III.2)Conditions related to the contract
III.2.2)Contract performance conditions:
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
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: yes
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: 31/07/2020
Local time: 14:00
IV.2.3)Estimated date of dispatch of invitations to tender or to participate to selected candidates
Date: 17/08/2020
IV.2.4)Languages in which tenders or requests to participate may be submitted:
English, Welsh
IV.2.6)Minimum time frame during which the tenderer must maintain the 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
VI.3)Additional information:

Under the terms of this contract the successful supplier(s) will be required to deliver community benefits in support of the authority’s economic and social objectives. Accordingly, contract performance conditions may relate in particular to social and environmental considerations. The community benefits included in this contract are:

Details of the authority's social value requirement will be detailed within the tender pack.

The buyer considers that this contract is suitable for consortia.

Once operational, the proposal is that the CHN will provide low carbon energy to a variety of customers in the Cardiff area across two initial phases, with the capacity and the intention to expand the CHN further in the future. The customers in the phase 1 core Scheme are primarily public sector organisations (as listed in section VI.3) (Additional Information) below) (‘Phase 1 Customers’). The phase 1 customers have identified specific energy needs and, in particular, given their technical requirements for low carbon energy and geographical location have chosen to be part of the project to allow these needs to be met. As result, the phase 1 customers will enter into energy supply contracts directly with the ESCO as part of the project. As part of the overall business case for the project, memoranda of understanding are in place with each of the phase 1 customers in relation to the extent of their respective roles in the project and the terms of the energy supply arrangements referred to above. Further detail of these arrangements will be made available in the ITN. As part of phase 1a, other public and private sector customers located in the vicinity of the Phase 1 network route will also be targeted for connection both during the phase 1 construction phase and the period following its completion. The ESCO shall have the ability to instruct the contractor(s) to expand the network to include phase 1a customers on the basis of the contract terms in place between the ESCO and the contractor(s). This will apply to all lots.

As part of a future expansion, the customers in phase 2 are likely to be a mix of additional public sector entities (including those identified in section VI.3) (Additional Information) below), but also a number private sector parties. The detail of the anticipated Phase 2 arrangements is set out in the ITN and will be subject to further development as the project progresses.

Phase 1 customers:

Cardiff Council

Senedd Cymru/Welsh Parliament

Wales Millennium Centre

Cardiff and Vale College

Phase 1a customers:

Public and private sector customers in the vicinity of phase 1

South Wales Police

University of South Wales

Assembly square

Fusion point

Rightacres

Atradius

Future Inn

Premier Inn

Phase 2 customers:

University of South Wales

Ministry of Justice

Ministry of Defence

Cardiff University

Cardiff & Vale University Health Board

Cardiff Sixth Form College

South Wales Police.

In addition to those customers listed above, the CHN will also be available to other public and private sector customers in the vicinity of the proposed network, stretching from Cardiff Bay in the South to Cathays Park in the North.

VI.4)Procedures for review
VI.4.1)Review body
Official name: High Court
Postal address: Royal Courts of Justice, The Strand
Town: London
Postal code: WC2A 2LL
Country: United Kingdom
VI.4.2)Body responsible for mediation procedures
VI.4.3)Review procedure
VI.4.4)Service from which information about the review procedure may be obtained
VI.5)Date of dispatch of this notice:
30/06/2020