Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
City of Edinburgh Council
07710854517
Edinburgh
EH8 8BG
UK
Contact person: Kelly Faulds
Telephone: +44 7710854517
E-mail: kelly.faulds@edinburgh.gov.uk
NUTS: UKM75
Internet address(es)
Main address: http://www.edinburgh.gov.uk
Address of the buyer profile: https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA00290
I.1) Name and addresses
Edinburgh College
Bankhead Drive, Sighthill
Edinburgh
EH11 4DE
UK
Telephone: +44 1315354764
E-mail: procurement@edinburghcollege.ac.uk
NUTS: UKM75
Internet address(es)
Main address: http://www.edinburghcollege.ac.uk/
Address of the buyer profile: https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA00210
I.1) Name and addresses
National Museums Scotland
Chambers Street
Edinburgh
EH1 1JF
UK
Telephone: +44 3001236789
E-mail: j.harper@nms.ac.uk
NUTS: UKM
Internet address(es)
Main address: http://www.nms.ac.uk/
Address of the buyer profile: https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA00423
I.1) Name and addresses
National Galleries of Scotland
National Galleries of Scotland, 73 Belford Road
Edinburgh
EH4 3DS
UK
Telephone: +44 1316246374
E-mail: amadeirarezende@nationalgalleries.org
NUTS: UKM75
Internet address(es)
Main address: http://www.nationalgalleries.org
Address of the buyer profile: https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA11042
I.1) Name and addresses
NHS Lothian
Procurement Headquarters, Lothian Health Board Waverley Gate 2-4 Waterloo Place
Edinburgh
EH1 3EG
UK
Telephone: +44 8454242424
E-mail: Jane.Hopton@nhslothian.scot.nhs.uk
NUTS: UKM
Internet address(es)
Main address: http://www.nhslothian.scot.nhs.uk/
Address of the buyer profile: https://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA00326
I.2) Joint procurement
The contract involves joint procurement
I.4) Type of the contracting authority
Regional or local authority
I.5) Main activity
General public services
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Heat Network Opportunity at Granton Waterfront, Edinburgh
Reference number: CT2931
II.1.2) Main CPV code
71314000
II.1.3) Type of contract
Services
II.1.4) Short description
The City of Edinburgh Council (the Council) is seeking to procure the delivery of a low carbon heat network to serve the Granton Waterfront development and existing buildings in the surrounding area under a concession model. The Council wishes to identify a concessionaire with the most economically advantageous tender to design, build, finance, operate and maintain the low carbon heat network using a two-stage process.
The successful tenderer will initially be appointed to work with the Council over a c.8 month period under a Pre-Development contract before a final business case for the project is made. This approach has been devised as part of the Council’s procurement strategy to reduce the burden of tendering as much as possible on tenderers and to encourage collaboration, innovation, risk apportionment, and partnership between the Council and the concessionaire.
This procurement includes the opportunity to supply heat from the low carbon heat network to: the Council; the other bodies identified in this contract notice; and any Registered Social Landlords with properties in the Granton Waterfront development or surrounding area.
Further details are outlined within the procurement documents.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
885 040.00
GBP
II.2) Description
II.2.2) Additional CPV code(s)
09323000
45232140
45232141
45251250
71321200
71314310
II.2.3) Place of performance
NUTS code:
UKM75
II.2.4) Description of the procurement
The City of Edinburgh Council (the Council) is seeking to procure the delivery of a low carbon heat network to serve the Granton Waterfront development and existing buildings in the surrounding area under a concession model. The Council wishes to identify a concessionaire with the most economically advantageous tender to design, build, finance, operate and maintain the low carbon heat network using a two-stage process.
The Granton Waterfront development is anticipated to deliver around 3,500 homes (over 1,000 of them affordable), a primary school, a medical centre and over 9,000m2 of commercial space. Around 800 homes and 3,000m2 of commercial space are expected to be delivered as part of the first phase of the development. As part of the development and to work towards meeting the target of Edinburgh achieving net zero carbon by 2030, the council wishes to progress the delivery of a heat network that will supply cost-competitive low carbon heat to new and existing households and non-domestic properties throughout Granton Waterfront and the surrounding areas, where deemed viable.
The current preferred solution identified for the low carbon heat network, following feasibility work and outline business case work is to source heat for the network from a wastewater source heat pump utilising heat from sewers. The network would utilise a sewage heat recovery system, with a ground-mounted solar PV array helping meet the system’s electricity requirements. The heat would be distributed via a network of approximately 7km (depending on network routing and phasing of connections). The indicative network identified as the preferred option in the outline business case is the maximum potential scheme serving the core Granton Waterfront development plus additional customers to the south, west and east. This preferred option represents an annual heat demand of c.25,055 MWh.
The successful bidder will initially be appointed to work with the Council over a c.8 month period under a Pre-Development contract culminating in a final business case for the project. This approach has been devised as part of the Council’s procurement strategy to reduce the burden of tendering as much as possible on tenderers and to encourage collaboration, innovation, risk apportionment, and partnership between the Council and the concessionaire.
Subject to final business case approval, the Council intends to enter into a concession agreement with the successful tenderer to design, build, finance, operate, maintain and supply heat from the heat network. The concession duration is subject to negotiation but is anticipated to be around 40 years. The concession agreement will require heat to be supplied to properties in the Granton Waterfront development with the first properties currently anticipated to be ready for occupation in September 2025. The concessionaire may also be required to incorporate a special purpose vehicle to deliver the heat network in which the Council is allotted a ‘golden share’ with voting rights attached.
This procurement includes the opportunity to supply heat from the low carbon heat network to: the Council; the other bodies identified in this contract notice; and any Registered Social Landlords with properties in the Granton Waterfront development or surrounding area.
Further details are outlined within the procurement documents.
II.2.5) Award criteria
Quality criterion: Quality
/ Weighting: 70
Cost criterion: Cost
/ Weighting: 30
II.2.11) Information about options
Options:
Yes
Description of options:
The Council anticipates that it will be possible to expand the network to connect more customers in the Granton Waterfront and surrounding areas. Expansion will be the responsibility of the concessionaire. It should be noted that the procurement process is being undertaken specifically for a heat network provider for the Granton Waterfront Development and surrounding areas, however, the Council reserves the right to extend the Agreement to other areas of the City at its sole discretion. This may include pre-development services or expansion of the network and will be discussed with the successful Tenderer only on completion of the pre-development services.
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Competitive procedure with negotiation
IV.1.8) Information about 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
Notice number in the OJ S:
2023/S 000-013984
Section V: Award of contract
Contract No: CT2931
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
23/01/2024
V.2.2) Information about tenders
Number of tenders received: 4
Number of tenders received from SMEs: 4
Number of tenders received from tenderers from EU Member States: 0
Number of tenders received from tenderers from non-EU Member States: 4
Number of tenders received by electronic means: 4
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Vattenfall Heat UK
The Tun, 4 Jacksons Entry, Holyrood Road
Edinburgh
EH8 8PJ
UK
Telephone: +44 7970615407
NUTS: UK
The contractor is an SME:
Yes
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 885 040.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.3) Additional information
The contract value specified in this Contract Award Notice is for the delivery of pre-development services which will be completed prior to the concession contract. The fee for these pre-development services is only payable in specific termination scenarios and is not payable if a concession contract is entered into with Vattenfall Heat UK Ltd.
If the pre-development contract services are completed successfully, and final business case approval is obtained for the project, an additional Contract Award Notice will be published in relation to the concession contract.
(SC Ref:761539)
VI.4) Procedures for review
VI.4.1) Review body
Sheriff Court
Sheriff Court House, 27 Chambers Street
EH1 1LB
UK
VI.4.3) Review procedure
Precise information on deadline(s) for review procedures:
A tenderer that suffers loss as a result of a breach of duty under the Public Contracts (Scotland) Regulations 2015 may bring proceedings in the Sheriff Court or the Court of Session. The City of Edinburgh Council (the Council) will have a minimum standstill period of 10 days before awarding the contract. The communication of the award decision notice will be sent by fax or e-mail to all tenderers with the standstill period commencing on the next day. If proceedings are started in the Sheriff Court or the Court of Session against the Council in respect of the decision to award the contract within the standstill period then the Council is prevented from awarding the contract. Post contract award the Sheriff Court or the Court of Session may (1) award damages provided proceedings are brought within 3 months from the date when the grounds for the bringing of the proceedings first arose (2) be entitled to issue an ineffectiveness order or impose a financial penalty on the Council. A claim for an ineffectiveness order must be made within 30 days of the Contract Award Notice being published in the FTS or within 30 days of the date those who expressed an interest in or otherwise bid for the contract were informed of the conclusion of the contract or in any other case within 6 months from the date on which the contract was entered into.
VI.5) Date of dispatch of this notice
21/03/2024