Clean Heat Market Mechanism Digital System - Alpha and Beta

Tender description

Work done so far A Discovery phase has been completed and found that an externally facing digital solution with an internal administrative portal was required. An aim for Alpha should be to define the minimum viable digital product needed for scheme launch, and identify possible additional elements e.g. an API. The Discovery report can be shared with suppliers by emailing CHMMDigital@beis.gov.uk. Which phase the project is in Alpha Existing team The existing CHMM digital project team consists of the following (NB: the team outlined below work across the project/policy and will not be working full time on digital delivery) • Service Owner – Head of Delivery, Electrification, Products, Buildings and Delivery • Product Managers – Delivery Lead and Digital Lead, Clean Heat Market Mechanism • Delivery Manager • Commercial Manager The selected supplier will additionally be working closely with the scheme administrator of the CHMM and with the wider CHMM Project team within the Department for Energy Security and Net Zero. Address where the work will be done Department for Energy Security and Net Zero, 1 Victoria Street, London SW1H 0ET and/or Remote Working Working arrangements The supplier will be expected to be available during the typical working hours of the CHMM project team (Monday to Friday 9:30am-5pm) in order to maximise knowledge transfer. We want to be able to hold face-to-face meetings where appropriate, but also to work in a hybrid manner, virtually and remotely as necessary and effective. We require the supplier to hold agile ceremonies as well as weekly update/‘show and tell’ sessions for DESNZ stakeholders, which will take place over MS Teams. Other potential tools tbc. Provide more information about your security requirements: Baseline Personnel Security Standard (BPSS) Latest start date 2023-06-12 Enter the expected contract length: 1 year Extension period: 6 months Special terms and conditions Additional terms will be added to the Call-Off Order Form: “Call-Off Initial Period Alpha” and ““Call-Off Initial Period Beta” – the Buyer will decide to proceed to Beta stage or terminate the Call-Off agreement after Alpha. Special terms and conditions All expenses must be pre-agreed between the parties and must comply with the Cabinet Office Travel and Subsistence Policy. All vendors are obliged to provide sufficient guarantees to implement appropriate technical and organisational measures so that the processing meets the requirements of GDPR and ensures the protection of the rights of data subjects. For further information please see the Information Commissioner's Office website https://ico.org.uk/for-organisations/data-protection-reform/overview-of-the-gdpr/ Write the term or acronym: CHMM Write the term or acronym: DESNZ Write the term or acronym: MVP Explain the term or acronym: Clean Heat Market Mechanism Explain the term or acronym: Department for Energy Security and Net Zero Explain the term or acronym: Minimum Viable Product Are you prepared to show your budget details?: Yes Indicative maximum: 1230250 Indicative minimum: 1030000 Provide further information: Indicative price ranges: Alpha - £130k-£160k exc VAT Beta - £900k-£1.1m exc VAT - NB exact length and scope of Beta to be determined in Alpha Combined Alpha and Beta should be no more than £1,230,250 excluding VAT. Optional extensions of 25% are possible to each of the Alpha and Beta phases up to a maximum of £37,187.50 exc VAT for Alpha and £270,375 exc VAT for Beta, subject to sufficient justification, costings, and DESNZ agreement. Additional costs expected e.g. platform hosting fees etc. will be funded separately and do not need to fall within the budget range of this ITT, however suppliers are asked to provide an initial estimate of such costs (see Technical questions). Note on contract length: Optional extensions of 25% are possible to each of the Alpha and Beta phases up to a maximum of 2.5 weeks for Alpha and 10.5 weeks for Beta, subject to sufficient justification, costings, and DESNZ agreement. Confirm if you require a contracted out service or supply of resource Contracted out service: the off-payroll rules do not apply Summary of work DESNZ require a team to run an Alpha and Beta to develop a digital system for the Clean Heat Market Mechanism (CHMM) for 2024 launch. The CHMM will support the development of the UK market for low-carbon electric heat pumps. The project will require: - Alpha (c. 10 weeks): Identify viable prototype for policy delivery, which meets user needs and passes assessments to Beta - Beta (No more than 42 weeks - exact length and scope to be defined in Alpha): Build digital product to align with scheme launch in April 2024. Supplier will then work with DESNZ to successfully transition into Public Beta, providing documentation, training and technical support to ensure service continuity. Where the supplied staff will work No specific location (for example they can work remotely) Who the organisation using the products or services is Department for Energy Security and Net Zero Why the work is being done We plan to introduce a Clean Heat Market Mechanism (CHMM) in 2024, to support the development of the UK market for low-carbon electric heat pumps. This mechanism will create a market incentive to grow the numbers of heat pumps installed in existing premises each year, providing industry with a clear, long-term policy framework for investment and innovation. The CHMM will place an annual obligation on the manufacturers of fossil fuel heating appliances to sell a certain number of heat pumps proportional to their sales of gas and oil boilers. We also intend to provide an alternative way for parties to meet their obligation beyond and alongside the sale of their own heat pumps, through the buying and selling of sales credits (representing installed heat pumps) from other parties. A digital platform is required for the successful delivery of this policy - to record fossil fuel boiler sales data, calculate and record obligations, record heat pump installations, allocate credits and measure obligated parties’ credit balances, receive heat pump credit trading data and allow for information management and communication with participants. We intend the policy to launch in April 2024 and need the digital build to align with this date. The business problem you need to solve The CHMM is a new policy intended for launch in April 2024, which does not currently have a digital platform. A digital platform will be required for the successful delivery of this policy - to record fossil fuel boiler sales data, to calculate and record obligations, to record heat pump installations, allocate credits and measure obligated parties’ credit balances, to receive heat pump credit trading data and to allow for information management and communication with participants. Outcome of Alpha: A detailed prototype that meets user needs and is adequately detailed to pass through DESNZ approval processes and move to Beta. Outcome of Beta: A ready-to-launch, cost effective service that meets all Government Service Standards and DESNZ approvals. NB Exact length and scope of Beta to be defined in Alpha. First user type: Fossil fuel boiler manufacturer First user type: Heat pump manufacturer First user type: Scheme administrator Enter more details about this user type: As a fossil fuel boiler manufacturer, I need to access my account, enter and review my fossil fuel boiler sales data, view my corresponding obligation, view guidance on how to meet my obligation, and communicate with the scheme administrator. I need information about credits generated by installation of my products and about credits I have sold or purchased to be reflected in the system. I may need to see other participants' credit holdings for trading purposes. Enter more details about this user type: As a heat pump manufacturer, I need to access my account and communicate with the scheme administrator. I need information about credits generated by the installation of my products and about credits I have sold to be reflected in the system. I may need to see other participants’ credit holdings for trading purposes. Enter more details about this user type: As the scheme administrator, I need to review and edit sales data for fossil fuel boilers, calculate and review fossil fuel boiler manufacturers’ obligations, review and edit heat pump installation data, and review and edit credit trading data. I need to know that this data is correct, free of duplications, maintained for reporting/compliance, and that risk of fraud/falsification is minimised. I need to issue guidance and notices to all scheme participants, communicate with individual participants, and issue and track non-compliance and response actions.