United Kingdom-South Shields: Manufacture, Supply, Installation and Commissioning of a Heat Pump for the Viking Energy Network Project, Jarrow

Type of document: Contract Awards
Country: United Kingdom
OJEU Ref: (2020/S 100-243195/EN)
Nature of contract: Supply contract
Procedure: Open procedure
Type of bid required: Not applicable

Contract award notice
Supplies

Section I: Contracting authority
I.1) Name and addresses
Official name: South Tyneside Council
Town: South Shields
Postal code: NE33 2RL
Country: United Kingdom
Contact Person: Kevin Graham
Email: kevin.graham@southtyneside.gov.uk
Internet address(es):
Main address:
Address of the buyer profile:

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:
The contract is divided into lots: no
II.1.7) Total value of the procurement(excluding VAT)
Value:799865.00
Currency: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

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
Identification of the project:The project is partly funded by a ERDF award.

Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Open procedure
IV.1.3) Information about a framework agreement or a dynamic purchasing system
IV.1.8) Information about the 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:2020-05-15
V.2.2) Information about tenders
Number of tenders received:1
Number of tenders received from SMEs:1
Number of tenders received from other EU Member States:0
Number of tenders received 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
Official name: Vital Energi Utilities Ltd
Postal address: Century House, Roman Road
Town: Blackburn
Postal code: BB1 2LD
Country: United Kingdom
Nuts code: 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: 799865.00
Currency: GBP
V.2.5) Information about subcontracting
The contract is likely to be subcontracted
Value or proportion likely to be subcontracted to third parties
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
Official name: Royal Courts of Justice
Town: London
Postal code: WC2A 2LL
Country: United Kingdom
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:
2020-05-19