London Borough of Havering - Strategic Heating Partner

Tender description

LB of Havering have successfully awarded a contract to K&T Heating to be their strategic heating partner to: a) Deliver servicing, maintenance and ad-hoc replacements of domestic and commercial wet heating systems b) Work jointly with Havering to deliver a heating strategy and future Tasks and services to incorporate electric, alternative fuel and renewable systems The contract is for an initial term of 9 years 7 months to 31st March 2035 with a optional 5 year extension to 2040, the estimated value for the initial term is £60,000,000. The full estimated value of £140,000,000 includes the extension taking the contract to 2040. Lot 1: Following a Competitive Dialogue procedure, London Borough of Havering have successfully awarded a Contract to K&T Heating to be their strategic heating partner to: a) Deliver servicing, maintenance and ad-hoc replacements of domestic and commercial wet heating systems b) Work jointly with Havering to deliver a heating strategy and future Tasks and services to incorporate electric, alternative fuel and renewable systems The core services of this Contract comprise the following: a) Servicing, maintenance and ad-hoc replacements to 8,239 domestic heating systems b) Servicing, maintenance and ad-hoc replacements to 77 commercial heating systems c) Installation and ongoing servicing and maintenance of alternative heating systems. Due to the volume of developing technologies in the area of heating systems, and the speed at which these technologies are becoming feasible, there is a requirement for the Service Provider to work with Havering and the other parties within the Strategic Partnering Alliance to deliver the best solutions for Havering and its residents. As Havering’s decarbonisation strategy evolves and alternative heating technologies evolve in parallel with it, it is anticipated that a product of a successful partnership will be year on year increases in the rate of replacement of current gas heating systems with alternative systems. It is also anticipated that this will be through a combination of direct delivery, by newly skilled operatives trained within the partnership, and specialist subcontractors. As technologies, products, legislation and funding opportunities evolve, the service provider will be required to evolve the skills of its workforce, supply chain and installation methods in order to continuously provide and demonstrate best value. To enable this, the pricing mechanisms under the contract are designed to provide a method for the derivation of new prices and continuous demonstration of best value as a result of any changes to the specification. The contract includes a mechanism for the parties to agree variations to the specification to reflect new and emerging technology, products, legislation and funding opportunities. The long term continuation of the contract, for example through contract extension, is intended to be predicated on the service provider's success in meeting all of these requirements The successful Provider has entered into a TAC-1 Term Alliance Contract (with break clauses) for an initial term of 9 years and 7 months, with a possible extension until 31st March 2040. Havering has followed the competitive dialogue procurement procedure in accordance with the Public Contracts Regulations 2015. Following completion of the Selection Questionnaire and associated appendices prospective bidders were shortlisted with seven bidders being invited to submit Core Proposals. Following evaluation of the Core Proposals in accordance with the tender documents, prospective bidders were again shortlisted and three bidders were invited to participate in dialogue with Havering.