Environmental improvement works

Tender description

This procurement process is being managed by Transport for London (‘TfL’) on behalf of the Greater London Authority (‘GLA’). This process is conducted as an innovation partnership under Regulation 31 of the Public Contracts Regulations 2015. The GLA has identified the need for an innovative solution that cannot be met by what is available on the market: a scaleable performance assured standard ‘whole house’ net zero energy (‘NZE’) solution for retrofitting homes at an economic price point. This process aims at the development of that innovative solution; and the subsequent purchase of it under a framework agreement, provided that specified performance levels and maximum costs are met. If successful, the process will: 1) develop a solution that does not presently exist in the market; 2) provide an effective route to market for pipeline projects from Housing Providers (as defined in II.2.4); and 3) develop a robust supply chain to deliver NZE solutions. The ‘whole house’ NZE retrofitting of homes referred to in II.1.4) will involve design and installation to meet an outcome-based specification with assured monitored performance. Solutions will require significant improvement in fabric thermal performance, on-site renewable energy generation and heating equipment, as required to achieve annual NZE consumption by some or all of those means. Specified comfort levels have to be achieved with a contractually guaranteed maximum amount of imported grid electricity. Offsite approaches are required, and non-disruptive installation completed in days on-site without residents having to move out. Homes will typically be fully insulated using offsite manufactured integrated fabric solutions, ‘energy pods’ providing low-carbon high efficiency heating and hot water, with PV generation. This procurement process commences with a supplier selection questionnaire (‘SSQ’) through which a shortlist of 15 suitably qualified bidders will be generated. Those bidders will progress to the ITT stage. The outcome of the ITT stage of this initial competition will be that (subject to sufficient bidders meeting the stated requirements) 10 providers (‘Solution Providers’) will be identified and selected to appear on a ranking list and participate in the ‘IPP Phase’. During the IPP Phase, each solution provider appearing on the ranking list will be entitled to develop specific retrofit solutions for defined ‘Schemes’ for Housing Providers (as defined below) in 4 sequential stages (summarised below), subject to meeting the contractual conditions for moving to the next stage. Funding contributions will be made in accordance with the relevant contracts to help pay for such development. Schemes will be allocated to solution providers in tranches, with the first tranche allocated at the end of the ITT stage. Those solution providers who performed best in the initial competition will appear at the top of the ranking list and will have priority of choice in selecting the schemes from the first tranche. For further tranches, a detailed contractual allocation process will apply, again using the original ranking list. For each Scheme, the IPP Phase will involve 4 stages: research and development (design); prototypes (retrofitting of circa 5 to 40 homes); pilot (c. 50 to 100 homes); and commercialise (c. 100 to 250 homes). The precise number of homes will vary between Schemes. Each solution provider will enter into an Innovation Partnership Contract with the relevant Housing Provider covering the 4 stages and the performance criteria and financial terms. The final element of the process is the ‘Framework Phase’. Solution providers that have successfully completed all 4 stages of the IPP Phase for a scheme will, under a framework agreement, be entitled to bid, through mini-competitions, for further Schemes involving delivery of a works contract to implement the solutions (including capacity and know how) developed during the IPP Phase. Any in-scope contracting authority (as defined in this notice at VI.3) is entitled to submit a scheme during the IPP Phase and to call-off works contracts during the IPP Phase. A ‘Housing Provider’ is defined by the procurement documents as an in-scope contracting authority that releases a scheme during the IPP Phase and/or framework phase. The Housing Providers for the first tranche of schemes during the IPP Phase are currently anticipated to be: • London Borough of Barking and Dagenham; • London Borough of Ealing; • London Borough of Haringey; • London Borough of Sutton/Sutton Housing Partnership; and • Nottingham City Council/Nottingham City Homes. It is currently anticipated that Housing Providers for further tranches of Schemes during the IPP Phase may include one, some or all of: • Bristol City Council; • City of York Council; • Great Places Housing Group Ltd; • Home Group Ltd; • London Borough of Enfield; • London Borough of Hammersmith and Fulham; • London Borough of Lambeth; • Royal Borough of Kensington and Chelsea; and Sanctuary Housing Association. For each contract (both during the IPP Phase and for works contracts awarded during the framework phase) the Housing Provider will have the option to appoint the same solution provider to perform maintenance and operation services in respect of the retrofitting that is carried out to the relevant homes. The duration stated in II.2.7) comprises: up to 3 years for the IPP Phase; a core term of 4 years for the framework agreement; plus an optional extension of up to 3 years (as described in II.2.11).