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Contract Award Notice

London Borough of Havering - Strategic Heating Partner

  • First published: 01 November 2024
  • Last modified: 01 November 2024
  • 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:
ocds-h6vhtk-03c48a
Published by:
London Borough of Havering
Authority ID:
AA22068
Publication date:
01 November 2024
Deadline date:
-
Notice type:
Contract Award Notice
Has documents:
No
Has SPD:
No
Has Carbon Reduction Plan:
N/A

Abstract

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.

Full notice text

Contract award notice

Results of the procurement procedure

Section I: Contracting entity

I.1) Name and addresses

London Borough of Havering

Town Hall, Main Road

Romford

RM1 3BB

UK

Contact person: Shelley Wood

Telephone: +44 7342933523

E-mail: Shelley.wood@lumensol.co.uk

NUTS: UKI

Internet address(es)

Main address: https://www.havering.gov.uk/

Address of the buyer profile: https://uk.eu-supply.com/ctm/Company/CompanyInformation/Index/131121

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

London Borough of Havering - Strategic Heating Partner

Reference number: L103

II.1.2) Main CPV code

45300000

 

II.1.3) Type of contract

Works

II.1.4) Short 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.

II.1.6) Information about lots

This contract is divided into lots: No

II.1.7) Total value of the procurement

Value excluding VAT: 140 000 000.00  GBP

II.2) Description

II.2.2) Additional CPV code(s)

45000000

45300000

45310000

45321000

45330000

45331100

50500000

50510000

50700000

50710000

50721000

II.2.3) Place of performance

NUTS code:

UKI

II.2.4) Description of the procurement

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.

II.2.5) Award criteria

Quality criterion: Quality / Weighting: 60

Price / Weighting:  40

II.2.11) Information about options

Options: Yes

Description of options:

Potential for 6 year contract extension term.

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 IV: Procedure

IV.1) Description

IV.1.1) Type of procedure

Competitive dialogue

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:

2023/S 000-012064

Section V: Award of contract

Contract No: 1

Title: London Borough of Havering - Strategic Heating Partner

A contract/lot is awarded: Yes

V.2 Award of contract

V.2.1) Date of conclusion of the contract

13/09/2024

V.2.2) Information about tenders

Number of tenders received: 3

Number of tenders received by electronic means: 3

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

V.2.3) Name and address of the contractor

K&T Heating Services Ltd

115159140

669 Woolwich Road

London

SE7 8LH

UK

Telephone: +44 1708758823

E-mail: bidteam@ktheating.co.uk

NUTS: UK

Internet address(es)

URL: http://www.kths.co.uk

The contractor is an SME: No

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

Total value of the contract/lot: : 140 000 000.00  GBP

V.2.5) Information about subcontracting

Section VI: Complementary information

VI.4) Procedures for review

VI.4.1) Review body

High Court of England and Wales

The Strand

London

WC2A 2LL

UK

VI.4.2) Body responsible for mediation procedures

High Court of England and Wales

The Strand

London

WC2A 2LL

UK

VI.4.3) Review procedure

Precise information on deadline(s) for review procedures:

Havering observed a 10 day standstill period following the award of the contract which concluded at midnight on 26th April 2024. Havering has conducted the procurement in accordance with the Public Contracts Regulations 2015 (as amended).

VI.4.4) Service from which information about the review procedure may be obtained

Cabinet Office

70 Whitehall

London

SW1A 2AS

UK

VI.5) Date of dispatch of this notice

31/10/2024

Coding

Commodity categories

ID Title Parent category
45300000 Building installation work Construction work
45331100 Central-heating installation work Heating, ventilation and air-conditioning installation work
50721000 Commissioning of heating installations Repair and maintenance services of central heating
45000000 Construction work Construction and Real Estate
45310000 Electrical installation work Building installation work
45330000 Plumbing and sanitary works Building installation work
50500000 Repair and maintenance services for pumps, valves, taps and metal containers and machinery Repair and maintenance services
50700000 Repair and maintenance services of building installations Repair and maintenance services
50710000 Repair and maintenance services of electrical and mechanical building installations Repair and maintenance services of building installations
50510000 Repair and maintenance services of pumps, valves, taps and metal containers Repair and maintenance services for pumps, valves, taps and metal containers and machinery
45321000 Thermal insulation work Insulation work

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:
Shelley.wood@lumensol.co.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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