London Borough of Havering - Strategic Heating Partner

LB of Havering are seeking to procure a suitable provider 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 will be for an initial term of 9 years 10 months with a optional 6 year extension to 2040, the estimated value for the initial term is £60,000,000. The full estimated value of £140,000,000 is including the extension taking the contract to 2040.

London Borough of Havering are seeking expressions of interest from suitably skilled and experienced suppliers 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 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 will also include 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 will enter into a TAC-1 Terms Alliance Contract (with break clauses) for an initial term of 9 years and 10 months, with a possible extension until 31st March 2040.

Havering are following the competitive dialogue procurement procedure in accordance with the Public Contracts Regulations 2015.

Following completion of the Selection Questionnaire and associated appendices prospective bidders will be shortlisted with six bidders anticipated being invited to submit Core Proposals.

Following evaluation of the quality proposals only, prospective bidders will again be shortlisted and invited to participate in dialogue with Havering. It is anticipated that three bidders will be invited.

On completion of dialogue sessions the bidders will be invited to submit Tenders for the full solution for evaluation.

Full information can be found in attached tender documentation Additional information: Havering are also procuring a series of contracts which will work under a collaborative Strategic Alliance to deliver reactive, cyclical and programmed work to Havering properties to support them in delivering their ambition of carbon neutrality by 2040. There will be a need for the Provider to work both with and in a sub-contract arrangement for some of these other Providers.