Contract notice – utilities
Section I: Contracting
entity
I.1) Name and addresses
National Grid Electricity Transmission PLC
04508773
1-3 Strand
London
PH1 3AQ
UK
Contact person: David Andrews
Telephone: +44 7787156827
E-mail: david.andrews@nationalgrid.com
NUTS: UK
Internet address(es)
Main address: https://www.nationalgrid.com
I.1) Name and addresses
Scottish Hydro Electric Transmission PLC
SC213461
Inveralmond House, 200 Dunkeld Road
Perth
PH1 3AQ
UK
Contact person: Jill Humphries
Telephone: +44 7918473059
E-mail: jill.humphries@sse.com
NUTS: UK
Internet address(es)
Main address: https://www.ssen.co.uk/Home
I.2) Joint procurement
The contract involves joint procurement
In the case of joint procurement involving different countries – applicable national procurement law:
England and Wales
I.3) Communication
Access to the procurement documents is restricted. Further information can be obtained at:
www.ariba.com
Additional information can be obtained from the abovementioned address
Tenders or requests to participate must be sent electronically to:
www.ariba.com
Tenders or requests to participate must be sent to the abovementioned address
Electronic communication requires the use of tools and devices that are not generally available. Unrestricted and full direct access to these tools and devices is possible, free of charge, at:
www.ariba.com
I.6) Main activity
Electricity
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Eastern Green Link 3, Scotland to Norfolk, England HVDC Link Project-Converters
Reference number: Converter - WS 4346053388
II.1.2) Main CPV code
45000000
II.1.3) Type of contract
Works
II.1.4) Short description
National Grid Electricity Transmission PLC and Scottish Hydro Electric Transmission PLC (the "Employers") are jointly developing a HVDC link between N Peterhead, Scotland and Norfolk, England (the "HVDC Link"). This notice concerns the procurement and award of contract(s) for:
• Design, manufacture, testing, commissioning, trial running, provision of critical spares for two HVDC converter stations located in Scotland and England.
• One converter will be located at the Netherton Hub, near Peterhead, Aberdeenshire, Scotland. The other will be located in Norfolk, England.
• The converters will each be capable of converting 2GW of AC to DC energy and DC to AC energy.
• The two converters will be linked by two no. 2GW capacity 525kV cables, much of which will be routed in the North Sea.
• There is an option that it will be routed through a DCSS (DC Switching Station) also to be located within the Netherton Hub
• Front-end engineering design services, in relation to any or all of the aforementioned scope.
• The Employers will require the Preferred Bidder to enter a Long-Term Service Agreement (LTSA) for the HVDC converter technology, either as part of the main contract or a standalone contracts(s). This may be structured as:
1: a single agreement covering the converters at Netherton Hub and in Norfolk together, with both Employers acting jointly or as a Joint Venture, or;
2: two separate agreements, one with each Employer, covering converters in their respective areas of geographic responsibility individually.
II.1.5) Estimated total value
Value excluding VAT:
1 200 000 000.00
GBP
II.1.6) Information about lots
This contract is divided into lots:
No
II.2) Description
II.2.2) Additional CPV code(s)
31200000
31600000
II.2.3) Place of performance
NUTS code:
UK
Main site or place of performance:
UK
II.2.4) Description of the procurement
The scope of this Procurement includes the provision of the front end engineering, the detailed design, manufacture, assembly, install, test, commission, trial operation, provision of critical spares and an option for maintenance support for 2 no. 2GW HVDC converters, one located at the Netherton Hub in Scotland and the other in Norfolk, England.
The Employers reserve the right to take up to a maximum of three Suppliers through the prequalification process and into the tender process.
Applicants are advised that, for the purpose of the contract, the Employers may potentially enter into joint venture arrangements prior to awarding any contract from this activity. If this approach were to be adopted and, depending on the nature of the joint venture arrangements, the successful applicant(s) may be required to enter into a contract with a new JV entity relating to the execution of the works and services being procured.
The Employers are considering the potential to award early works.
II.2.5) Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
II.2.6) Estimated value
Value excluding VAT:
1 200 000 000.00
GBP
II.2.7) Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 150
This contract is subject to renewal: No
II.2.10) Information about variants
Variants will be accepted:
No
II.2.11) Information about options
Options:
No
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 III: Legal, economic, financial and technical information
III.1) Conditions for participation
III.1.1) Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers
List and brief description of conditions:
As described in the procurement documents
III.1.2) Economic and financial standing
Selection criteria as stated in the procurement documents
III.1.3) Technical and professional ability
Selection criteria as stated in the procurement documents
III.1.4) Objective rules and criteria for participation
As described in the procurement documents
III.1.6) Deposits and guarantees required:
Parent company guarantees from the ultimate parent company or equivalent third party security
Performance and warranty bonds
Collateral warranties in favour of the Employers from all key subcontractors (to be
determined by the Employers)
Advance payment bonds if the Employers agree to an advance payment in each case as more fully described in the procurement documents
III.1.7) Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:
Eastern Green Link 3 (EGL3) is subject to regulation under the Ofgem Accelerated Strategic Transmission Investment (ASTI) framework and therefore the project costs and payment provisions may be subject to regulatory oversight.
III.1.8) Legal form to be taken by the group of economic operators to whom the contract is to be awarded:
Where there is a group of economic operators, joint venture or consortium, each economic operator, joint venture partner or consortium member must be jointly and severally liable for the whole of the performance of the obligations under any contract to which it is a party.
III.2) Conditions related to the contract
III.2.2) Contract performance conditions
Contracts will be structured on a supply and install basis and will be subject to the laws of England & Wales. They will contain performance guarantees.
It is anticipated that the contract for the Works will be awarded by early 2025. The Works will require to be delivered in time to allow the final EGL3 asset to be in service by the date set by Ofgem. As at the date of this notice, Ofgem’s requirement for the EGL3 asset to be in-service is anticipated to be Q4 2030.
These dates are indicative. Any available update to these dates and/or further information will be provided in the ITT.
III.2.3) Information about staff responsible for the performance of the contract
Obligation to indicate the names and professional qualifications of the staff assigned to performing the contract
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Negotiated with call for competition
IV.1.4) Information about reduction of the number of solutions or tenders during negotiation or dialogue
Recourse to staged procedure to gradually reduce the number of solutions to be discussed or tenders to be negotiated
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
IV.2) Administrative information
IV.2.2) Time limit for receipt of tenders or requests to participate
Date:
22/01/2024
Local time: 17:00
IV.2.3) Estimated date of dispatch of invitations to tender or to participate to selected candidates
Date:
01/04/2024
IV.2.4) Languages in which tenders or requests to participate may be submitted
EN
IV.2.6) Minimum time frame during which the tenderer must maintain the tender
Duration in months: 16 (from the date stated for receipt of tender)
Section VI: Complementary information
VI.1) Information about recurrence
This is a recurrent procurement:
No
VI.3) Additional information
Applicants are advised that, for the purpose of the contracts, the Employers may potentially enter into joint venture arrangements prior to awarding any contract from this activity. If this approach were to be adopted and, depending on the nature of the joint venture arrangements, the successful applicant(s) may be required to enter into a contract with a new JV entity relating to the execution of the works and services being procured.
The Employers reserve the right to withdraw this notice at any time for whatever reason.
Applicants shall be fully responsible for the costs of responding to this procurement at all stages of the procurement and in no circumstances do the Employers accept any liability for any costs incurred by any Applicants, howsoever or whensoever incurred.
VI.4) Procedures for review
VI.4.1) Review body
High Court of Justice
King's Bench Division Divisional Court, Royal Courts of Justice, Strand,
London
WC2A 2LL
UK
Telephone: +44 2039368957
Internet address(es)
URL: https://www.gov.uk/courts-tribunals/kings-bench-division-of-the-high-court
VI.5) Date of dispatch of this notice
12/12/2023