The contract covers the design and build of a new Energy Centre with a gas engine CHP plant and a District Heating (DH) network providing a base load heating supply to three existing residential estates and leisure facilities owned by Islington ...

Contract award notice

Works

Directive 2004/18/EC

Section I: Contracting authority

I.1)Name, addresses and contact point(s)

Islington
7 Newington Barrow Way
For the attention of: Mr Dugan Warn
N7 7EP London
UNITED KINGDOM
Telephone: +44 2075278140
E-mail:

Internet address(es):

General address of the contracting authority: www.islington.gov.uk

I.2)Type of the contracting authority
Regional or local authority
I.3)Main activity
General public services
I.4)Contract award on behalf of other contracting authorities
The contracting authority is purchasing on behalf of other contracting authorities: no

Section II: Object of the contract

II.1)Description
II.1.1)Title attributed to the contract
1011-276 - Bunhill Energy Centre and Heat Network.
II.1.2)Type of contract and location of works, place of delivery or of performance
Works
Realisation, by whatever means of work, corresponding to the requirements specified by the successful tenderer
Main site or location of works, place of delivery or of performance: Islington, London, UK.

NUTS code UKI

II.1.3)Information about a framework agreement or a dynamic purchasing system (DPS)
II.1.4)Short description of the contract or purchase(s)
The contract covers the design and build of a new Energy Centre with a gas engine CHP plant and a District Heating (DH) network providing a base load heating supply to three existing residential estates and leisure facilities owned by Islington Council.
The successful provider is to design and construct an Energy Centre and heat network to supply heat in the form of hot water to a core network of 3 communally heated residential estates (710 homes) and two leisure centres. The heat network shall connect the Energy Centre to the buildings via hydraulic interface units located in the boiler rooms of the buildings to be connected.
A planning application has been submitted by Islington Council for a new Energy Centre to be installed in a current car park at the junction of Central Street and Mitchell Street.
A below-ground heat network will supply base load heating from the Energy Centre to the following residential estates and leisure facilities:
1. Stafford Cripps Estate;
2. St Luke’s Estate - Godfrey House Boiler house;
3. Redbrick Estate - Bartholomew Court Boiler house;
4. Redbrick Estate - Steadman Court Boiler house;
5. Finsbury Leisure Centre;
6. Ironmonger Row Baths.
The tender included some or all of the following elements:
A) An Energy Centre with brick enclosure and containerised equipment, subject to planning approval.
The principal elements of the Energy Centre are likely to include:
1. 1.8MWe - 2MWe CHP;
2. 100m3 capacity thermal store;
3. Duty/Standby pumps with inverter control;
4. Packaged Pressurisation Unit;
5. Water treatment;
6. BEMS controls;
7. HV intake with import/export metering;
8. 2,500 kVA 400V/11kV step-up transformer;
9. LV switchgear.
B) Hydraulic sub-stations within the boiler rooms of each of the six connecting buildings providing plate heat exchanger interface between the buildings’ existing secondary heating systems and the new district heat network.
C) Approximately 1,200m length of new underground district heat network (pipework diameter ranging from 80mm to 200mm) and fibre optic network, both with additional network capacity to facilitate possible future growth of the network and/or interconnection with other networks.
D) A maintenance contract for the CHP plant with guaranteed performance levels and availability.
E) Maintenance contracts covering the balance of the Energy Centre equipment, network and customer connections.
The length of the construction element is approximately 10 months. The length of the output based maintenance contracts will be no less than 10 years.
Indicative combined construction contract value 4 000 000 GBP.
Indicative maintenance contract value 100 000 GBP/year for minimum 10 years.
Consortia and joint bids with a named principal contractor were also invited.
Current status.
Current studies to scope the potential for decentralised energy across the Borough of Islington began in summer 2007. The detailed technical feasibility and concept design work has been progressed since September 2009 and several opportunity areas have been identified. One such opportunity area is in the Old Street area roughly bounded by City Road, Moreland Street, Goswell Road and Old Street.
A Prior Information Notice (PIN) was issued in March 2010 in addition to this notice and will provide information on Islington’s overall Decentralised Energy Programme and local opportunities.
The councils aims for this project are:
- to cut CO2 emissions in Islington significantly by developing a decentralised energy network in the south of the borough in the Old Street area,
- to maximise the economic, social and environmental benefit to Islington residents.
Our key objectives are:
- to deliver a decentralised energy network for Islington served by high quality CHP,
- to develop the network around large anchor heat loads,
- to deliver decentralised energy infrastructure in the area by the summer of 2012,
- to reduce levels of fuel poverty in the area,
- to work in partnership with suitable organisations who share our aims,
- to enable residents to buy cheaper, low-carbon heat,
- to supply low carbon heat to existing buildings and new developments (where possible in the future),
- to develop innovative approaches to community participation,
- to develop new approaches to generation as the technology develops,
- to ensure the project delivers the greatest benefits at lowest, whole-life cost.
The intention is that this procurement process will result in the construction of the Energy Centre and heat network for commissioning in May 2012.
The requirement.
To design and install an Energy Centre and heat network to supply heat in the form of hot water to six building connections. The Energy Centre and network must meet the following requirements:
The construction of the Energy Centre enclosure and the installation of a nominal 1.8 - 2 MW containerised gas CHP engine, a 100m3 thermal store to ensure optimum utilisation of the CHP and associated containerised equipment, including circulation pumps, pressurisation plant, controls, 2.5MVA step-up transformer, LV switchgear and import/export metering. No top-up or backup boilers are proposed within the Energy Centre.
The system will operate initially at 95 degC flow and 70 degC return at a maximum pressure of 7bar(g). The network components shall be suitable for use at 120 degC and 16 bar(g) to allow for potential connection to other heat networks.
The district heating pipe system forming the buried section of the network will be a bonded system, in which the steel carrier pipe, insulation and high-density polyethylene (HDPE) outer casing are moulded together to form a solid unit.
The design and installation of the of the Energy Centre and heat network is to be completed before end April 2012 and a heat supply is available to serve the connecting buildings with low carbon heat form the Energy Centre during the summer heating period 2012.
Maintenance contracts covering the balance of the Energy Centre equipment, network and customer connections.
Assessment criteria.
The evaluation panel will be looking to shortlist a maximum of 8 of the top scoring pre-qualification questionnaires to go forward to the tender stage. The contract specific questions will be scored as detailed in the questionnaire.
The contract will be awarded to the most economically advantageous tender on the basis of cost (70 %) and quality (30 %). Tenders will be evaluated in accordance with the criteria below:
Criteria Weighting.
Cost: 70 %.
Specific cost breakdown will be required at tender stages.
Quality and methodology: 30 %.
This will include evaluation of:
- proposals for effectively controlling programme, costs and risks for this contract (10 %),
- quality of key personnel assigned to this project (7,5 %),
- proposals for controlling and managing sites for this contract (5 %),
- proposals for establishing and managing an effective supply chain for this contract (5 %),
- sustainability in relation to this project (2,5 %).
II.1.5)Common procurement vocabulary (CPV)

71000000

II.1.6)Information about Government Procurement Agreement (GPA)
II.2)Total final value of contract(s)
II.2.1)Total final value of contract(s)
Value: 4 400 000 GBP
Excluding VAT

Section IV: Procedure

IV.1)Type of procedure
IV.1.1)Type of procedure
Restricted
IV.2)Award criteria
IV.2.1)Award criteria
The most economically advantageous tender in terms of
1. Cost. Weighting 70
2. Quality. Weighting 30
IV.2.2)Information about electronic auction
An electronic auction has been used: no
IV.3)Administrative information
IV.3.1)File reference number attributed by the contracting authority
1011-276
IV.3.2)Previous publication(s) concerning the same contract
no

Section V: Award of contract

Contract No: 1011-276 Lot title: Bunhill Energy Centre and Heat Network.
V.1)Date of contract award decision:
7.2.2012
V.2)Information about offers
Number of offers received: 4
V.3)Name and address of economic operator in favour of whom the contract award decision has been taken

Vital Energi
Century House Roman Road Blackburn
BB1 2LD Lancashire
UNITED KINGDOM
E-mail:
Internet address: www.vitalenergi.co.uk

V.4)Information on value of contract
Initial estimated total value of the contract:
Value: 4 400 000 GBP
Excluding VAT
If annual or monthly value:
Number of months: 120
V.5)Information about subcontracting
The contract is likely to be sub-contracted: no

Section VI: Complementary information

VI.1)Information about European Union funds
The contract is related to a project and/or programme financed by European Union funds: no
VI.2)Additional information:
VI.3)Procedures for appeal
VI.3.1)Body responsible for appeal procedures

Islington Council
7 Newington Barrow Way
N7 7EP London
UNITED KINGDOM
Internet address: www.islington.gov.uk

Body responsible for mediation procedures

Islington Council
7 Newington Barrow Way
N7 7EP London
UNITED KINGDOM
Internet address: www.islington.gov.uk

VI.3.2)Lodging of appeals
Precise information on deadline(s) for lodging appeals: Islington Council.
VI.3.3)Service from which information about the lodging of appeals may be obtained

Islington Council
7 Newington Barrow Way
N7 7EP London
UNITED KINGDOM
Internet address: www.islington.gov.uk

VI.4)Date of dispatch of this notice:
20.2.2012