Award

London Borough of Havering - Strategic Heating Partner

LONDON BOROUGH OF HAVERING

This public procurement record has 3 releases in its history.

Award

31 Oct 2024 at 20:19

TenderUpdate

30 May 2023 at 09:39

Tender

26 Apr 2023 at 17:24

Summary of the contracting process

The London Borough of Havering has awarded a contract to K&T Heating Services Ltd to be a strategic heating partner, encompassing the servicing, maintenance, and ad-hoc replacement of domestic and commercial heating systems. This contract also involves developing a heating strategy that includes electric, alternative fuel, and renewable systems. The agreement's initial term is from 2024 until 31st March 2035, with the option of a 5-year extension to 2040. This contract, estimated at £60,000,000 for the initial term and potentially reaching £140,000,000 if extended, follows a competitive dialogue procurement method, adhering to Public Contracts Regulations 2015 (as amended). The main procurement category is "works," specifically building installation work in the UKI region. Contracts were signed on 13th September 2024, and the procurement process is now complete.

This tender presents significant growth opportunities for businesses specializing in heating systems, renewables, and energy efficiency technologies. Companies capable of providing high-quality installation, servicing, and maintenance of heating systems, including alternative and renewable systems, are well-suited for participation. The contract offers long-term collaboration potential, allowing firms to tap into continuous innovation and develop new skills and capabilities. Suppliers with strong credentials in regulatory compliance and evolving product expertise, and those capable of integrating with a strategic alliance framework, will find this partnership mutually beneficial.

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Notice Title

London Borough of Havering - Strategic Heating Partner

Notice 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 PS60,000,000. The full estimated value of PS140,000,000 includes the extension taking the contract to 2040.

Lot Information

Lot 1

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.

Options: Potential for 6 year contract extension term.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-03c48a
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/035404-2024
Current Stage
Award
All Stages
Tender, Award

Procurement Classification

Notice Type
Tender Notice
Procurement Type
Standard
Procurement Category
Works
Procurement Method
Selective
Procurement Method Details
Competitive dialogue
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

45 - Construction work

50 - Repair and maintenance services


CPV Codes

45000000 - Construction work

45300000 - Building installation work

45310000 - Electrical installation work

45321000 - Thermal insulation work

45330000 - Plumbing and sanitary works

45331100 - Central-heating installation work

50500000 - Repair and maintenance services for pumps, valves, taps and metal containers and machinery

50510000 - Repair and maintenance services of pumps, valves, taps and metal containers

50700000 - Repair and maintenance services of building installations

50710000 - Repair and maintenance services of electrical and mechanical building installations

50721000 - Commissioning of heating installations

Notice Value(s)

Tender Value
£140,000,000 £100M-£1B
Lots Value
£140,000,000 £100M-£1B
Awards Value
Not specified
Contracts Value
£140,000,000 £100M-£1B

Notice Dates

Publication Date
31 Oct 20241 years ago
Submission Deadline
30 May 2023Expired
Future Notice Date
Not specified
Award Date
12 Sep 20241 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Cancelled
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
LONDON BOROUGH OF HAVERING
Contact Name
Shelley Wood
Contact Email
shelley.wood@lumensol.co.uk
Contact Phone
+44 7342933523

Buyer Location

Locality
ROMFORD
Postcode
RM1 3BB
Post Town
Romford
Country
England

Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI5 Outer London - East and North East
Small Region (ITL 3)
TLI52 Barking & Dagenham and Havering
Delivery Location
TLI London

Local Authority
Havering
Electoral Ward
St Edward's
Westminster Constituency
Romford

Supplier Information

Number of Suppliers
1
Supplier Name

K&T HEATING SERVICES

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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