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Contract Award Notice

Manufacture, Supply, Installation and Commissioning of a Heat Pump for the Viking Energy Network Project, Jarrow

  • First published: 25 May 2020
  • Last modified: 25 May 2020
  • Version: N/A
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To record your interest or obtain additional information or documents please find instructions within the Full Notice Text. (NOTE: Contract Award Notices and Prior Information Notices do not normally require a response)

Contents

Summary

OCID:
Published by:
South Tyneside Council
Authority ID:
AA22153
Publication date:
25 May 2020
Deadline date:
-
Notice type:
Contract Award Notice
Has documents:
No
Has SPD:
No
Has Carbon Reduction Plan:
N/A

Abstract

South Tyneside Council is looking to construct a district energy scheme to provide heat and power for South Tyneside Council operated buildings in central Jarrow.

The new build energy centre and associated district heating and power network will provide low-cost, low-carbon energy direct to connected buildings via a dedicated network of pipelines and power cables. The proposed network will be known as the Viking Energy Network Jarrow (VENJ).

The new Energy Centre serving the network will be built on an existing council owned brownfield site at Jarrow Staithes on the south bank of the River Tyne on the outskirts of Jarrow. The energy centre serving the proposed energy network project will extract water locally from the River Tyne and use Water Source Heat Pump (WSHP) technology to feed a district energy network.

The WSHP will be supplemented by a gas fired combined heat and power unit (CHP). The electricity generated locally by the CHP will be fed by a private wire network (PWN) to the council operated buildings. A locally installed Photovoltaic (PV) farm will also contribute to the electricity supply. Surplus electricity generated by the CHP and the PV will be stored in a Battery Energy Storage System (BESS) for later release to the PWN.

The proposed operational strategy utilising the electrical generation and BESS will mean that the WSHP will run on a carbon neutral basis for much of the summer periods for domestic hot water generation for the connected network buildings.

The VENJ Energy Centre will generate and supply electricity directly over dedicated High Voltage (HV) cabling to local substations, with a local low voltage (LV) final connection into the selected council buildings. Heat will be delivered directly to buildings via an underground pipe network of pre-insulated flow and return pipework.

Performance Specification for Water Source Heat Pump (WSHP)

Initially the Energy Centre will be designed to serve 14 number buildings, 2 of which will be future connections only. The pipework network is being designed with expansion allowance and future proofing in mind. The PWN will have a connection to the local HV network from the current distribution network operator (DNO) which will assist in the event of any abnormal short-term peak loads being greater than that available through local generation and storage.

Future phases could also see heat and power supplied to many other homes, offices, shops and hotels across the town centre, with future developments in Jarrow. The overall scheme has been driven by the council’s desire to reduce Jarrow’s carbon footprint, to reduce energy costs for council and to deliver affordable heat and power to its residents.

The purpose of this specification is the outline the requirements of the Water Source Heat Pump package only which is to be tendered as a standalone contract.

Scope of works

The scope of works shall comprise the following elements:

• selection, design, installation and commissioning of a water source heat pump which shall be located in the proposed energy centre of the building. The energy centre building construction and the wider installation and remainder of plant and equipment shall be part of a separate contract by the main contractor;

• provision of new power supply to power water source (supply termination to WSHP equipment only);

• all pipework terminations to and from heat pump;

• mechanical ventilation installations to enable heat pump to operate;

• BMS automatic controls and wiring (heat pump only);

• builders work associated with heat pump;

• heat pump footings and supports on structural slab;

• energy meeting to comply with RHI requirement;

• thermal insulation;

• interface works;

• acoustic works;

• commissioning including seasonal commissioning. The WSHP specialist shall also allow further recommissioning visits post Marc

Full notice text

Contract award notice

Results of the procurement procedure

Section I: Contracting entity

I.1) Name and addresses

South Tyneside Council

South Shields

NE33 2RL

UK

Contact person: Kevin Graham

E-mail: kevin.graham@southtyneside.gov.uk

NUTS: UKC22

Internet address(es)

Main address: http://www.southtyneside.gov.uk/

Address of the buyer profile: https://procontract.due-north.com

I.4) Type of the contracting authority

Regional or local authority

I.5) Main activity

General public services

Section II: Object

II.1) Scope of the procurement

II.1.1) Title

Manufacture, Supply, Installation and Commissioning of a Heat Pump for the Viking Energy Network Project, Jarrow

Reference number: C7655

II.1.2) Main CPV code

42511110

 

II.1.3) Type of contract

Supplies

II.1.4) Short description

South Tyneside Council wishes to establish a district energy network in Jarrow.

The construction of the district energy network and associated infrastructure is subject to a separate contract, currently in the procurement phase. In order for the Council to try to achieve RHI compliance within the available timescale, it wishes to procure a specialist heat pump supplier to manufacture, supply, install and commission a pump in accordance with the specification.

II.1.6) Information about lots

This contract is divided into lots: No

II.1.7) Total value of the procurement

Value excluding VAT: 799 865.00  GBP

II.2) Description

II.2.3) Place of performance

NUTS code:

UKC22


Main site or place of performance:

Jarrow, South Tyneside

II.2.4) Description of the procurement

South Tyneside Council is looking to construct a district energy scheme to provide heat and power for South Tyneside Council operated buildings in central Jarrow.

The new build energy centre and associated district heating and power network will provide low-cost, low-carbon energy direct to connected buildings via a dedicated network of pipelines and power cables. The proposed network will be known as the Viking Energy Network Jarrow (VENJ).

The new Energy Centre serving the network will be built on an existing council owned brownfield site at Jarrow Staithes on the south bank of the River Tyne on the outskirts of Jarrow. The energy centre serving the proposed energy network project will extract water locally from the River Tyne and use Water Source Heat Pump (WSHP) technology to feed a district energy network.

The WSHP will be supplemented by a gas fired combined heat and power unit (CHP). The electricity generated locally by the CHP will be fed by a private wire network (PWN) to the council operated buildings. A locally installed Photovoltaic (PV) farm will also contribute to the electricity supply. Surplus electricity generated by the CHP and the PV will be stored in a Battery Energy Storage System (BESS) for later release to the PWN.

The proposed operational strategy utilising the electrical generation and BESS will mean that the WSHP will run on a carbon neutral basis for much of the summer periods for domestic hot water generation for the connected network buildings.

The VENJ Energy Centre will generate and supply electricity directly over dedicated High Voltage (HV) cabling to local substations, with a local low voltage (LV) final connection into the selected council buildings. Heat will be delivered directly to buildings via an underground pipe network of pre-insulated flow and return pipework.

Performance Specification for Water Source Heat Pump (WSHP)

Initially the Energy Centre will be designed to serve 14 number buildings, 2 of which will be future connections only. The pipework network is being designed with expansion allowance and future proofing in mind. The PWN will have a connection to the local HV network from the current distribution network operator (DNO) which will assist in the event of any abnormal short-term peak loads being greater than that available through local generation and storage.

Future phases could also see heat and power supplied to many other homes, offices, shops and hotels across the town centre, with future developments in Jarrow. The overall scheme has been driven by the council’s desire to reduce Jarrow’s carbon footprint, to reduce energy costs for council and to deliver affordable heat and power to its residents.

The purpose of this specification is the outline the requirements of the Water Source Heat Pump package only which is to be tendered as a standalone contract.

Scope of works

The scope of works shall comprise the following elements:

• selection, design, installation and commissioning of a water source heat pump which shall be located in the proposed energy centre of the building. The energy centre building construction and the wider installation and remainder of plant and equipment shall be part of a separate contract by the main contractor;

• provision of new power supply to power water source (supply termination to WSHP equipment only);

• all pipework terminations to and from heat pump;

• mechanical ventilation installations to enable heat pump to operate;

• BMS automatic controls and wiring (heat pump only);

• builders work associated with heat pump;

• heat pump footings and supports on structural slab;

• energy meeting to comply with RHI requirement;

• thermal insulation;

• interface works;

• acoustic works;

• commissioning including seasonal commissioning. The WSHP specialist shall also allow further recommissioning visits post March 2021 once the rest of the District Heating Network comes online.

II.2.5) Award criteria

Quality criterion: Method statement(s) for manufacturing, delivery, installation and commissioning of the heat pump in accordance with the timescales / Weighting: 15

Quality criterion: Master programme for the project suitable for acceptance by the Employer and in compliance with the timescale requirements of the NEC4 Supply form of contract. / Weighting: 5

Cost criterion: Compliant tender offer / Weighting: 70

Cost criterion: Cashflow / Weighting: 10

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: Yes

Section IV: Procedure

IV.1) Description

IV.1.1) Type of procedure

Open procedure

IV.1.8) Information about Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes

IV.2) Administrative information

IV.2.1) Previous publication concerning this procedure

Notice number in the OJ S:

2020/S 034-081697

Section V: Award of contract

Title: Manufacture, Supply, Installation and Commissioning of a Heat Pump for the Viking Energy Network Project, Jarrow

A contract/lot is awarded: Yes

V.2 Award of contract

V.2.1) Date of conclusion of the contract

15/05/2020

V.2.2) Information about tenders

Number of tenders received: 1

Number of tenders received from SMEs: 1

Number of tenders received from tenderers from EU Member States: 0

Number of tenders received from tenderers from non-EU Member States: 0

Number of tenders received by electronic means: 1

The contract has been awarded to a group of economic operators: No

V.2.3) Name and address of the contractor

Vital Energi Utilities Ltd

Century House, Roman Road

Blackburn

BB1 2LD

UK

NUTS: UKD41

The contractor is an SME: Yes

V.2.4) Information on value of the contract/lot (excluding VAT)

Total value of the contract/lot: : 799 865.00  GBP

V.2.5) Information about subcontracting

The contract is likely to be subcontracted

Short description of the part of the contract to be subcontracted:

Manufacture of the water source heat pump

Section VI: Complementary information

VI.4) Procedures for review

VI.4.1) Review body

Royal Courts of Justice

London

WC2A 2LL

UK

Telephone: +44 2079476000

VI.4.3) Review procedure

Precise information on deadline(s) for review procedures:

Any review proceedings should be promptly brought to the attention of the South Tyneside Council Head of Legal Services at Town Hall and Civic Offices, Westoe Road, South Shields NE33 2RL and will be dealt with in accordance with the requirements of the Public Contracts Regulations 2015 (‘PCR 2015’). Any review proceedings must be brought within the timescales specified by the applicable law, including, without limitation, PCR 2015. In accordance with PCR 2015, the Council will incorporate a minimum 10 calendar day standstill period from the date information on the award of the contract is communicated to tenderers.

VI.5) Date of dispatch of this notice

19/05/2020

Coding

Commodity categories

ID Title Parent category
42511110 Heat pumps Heat-exchange units and machinery for liquefying air or other gases

Delivery locations

ID Description
100 UK - All

Alert region restrictions

The buyer has restricted the alert for this notice to suppliers based in the following regions.

ID Description
There are no alert restrictions for this notice.

About the buyer

Main contact:
kevin.graham@southtyneside.gov.uk
Admin contact:
N/a
Technical contact:
N/a
Other contact:
N/a

Further information

Date Details
No further information has been uploaded.

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