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United Kingdom-Cardiff: District-heating mains construction work
Contract notice – utilities
Section I: Contracting entity
Main address: www.cardiff.gov.uk
Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0422
Section II: Object
Cardiff Heat Network (CHN)
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).
Design and Build of the Distribution Network
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.
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.
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.
Design and Build of the Back-up/top-up Energy Centre, Utility Interconnections and all Equipment Required there-in
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.
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.
Design, Build, Operate and Maintain District Heating Network
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.
Section III: Legal, economic, financial and technical information
Section IV: Procedure
Section VI: Complementary 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:
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
Phase 2 customers:
Ministry of Justice
Ministry of Defence
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.