Award

Firmus Energy Construction and Maintenance Works and Services Contract

FIRMUS ENERGY (DISTRIBUTION) LIMITED

This public procurement record has 3 releases in its history.

Award

24 Jul 2024 at 11:52

Tender

13 Dec 2023 at 13:42

Planning

23 Oct 2023 at 14:18

Summary of the contracting process

Firmus Energy (Distribution) Limited, based in Antrim, United Kingdom, has concluded the tender process and awarded a Framework Agreement for Lot 2 (Option B) on 1 July 2024. This agreement relates to the construction and maintenance of gas supply mains within Northern Ireland, specifically in regions including Derry/Londonderry, Limavady, Coleraine, Ballymoney, Ballymena, Antrim, Craigavon, Armagh, Banbridge, and Newry. The procurement process followed a negotiated procedure with a prior call for competition under the Utilities Contracts Regulations 2016. Interested parties had to register their contact details to receive updates during the procurement process. The framework duration for Lot 2 is initially set for five years with the possibility of one 12-month extension, with no performance bond required and a retention limit of £300,000, capable of reducing by one-third at the end of the third year. The procurement stage has been marked as complete with an award value estimated at £66,000,000 over a potential six-year contract period.

This tender presents a significant opportunity for businesses involved in gas supply mains construction and related works to grow by partnering with Firmus Energy. The awarded framework for Lot 2 includes no requirement for a performance bond, making it accessible for a larger number of suppliers. Businesses with expertise in construction, maintenance, emergency response construction, maintenance services, and sitework services including meter replacement are especially well-suited to benefit from this contract. The roles expected under this framework also encompass material purchasing, logistics, and administration of all necessary engineering materials, promoting substantial business operations and potential financial growth. Contractors interested in supporting the gas network expansion and maintenance within Northern Ireland stand to gain from this long-term and high-value agreement.

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Notice Title

Firmus Energy Construction and Maintenance Works and Services Contract

Notice Description

firmus energy ran a procurement exercise to (subject to the terms of the Invitation to Negotiate) establish a Framework Agreement with two Contractors, a 'primary' Contractor and a 'reserve' Contractor. The intention was that all Works required would be awarded to the first ranked Tenderer ('primary' Contractor) to complete in accordance with the terms of the Framework Agreement. The second ranked Tenderer would (subject to the terms of the Invitation to Negotiate) be appointed as a 'reserve' Contractor and potentially, at firmus energy's discretion, be appointed to undertake the entirety of the Works in the event that the 'primary' Contractor was unable or unwilling to undertake the Works for any reason during the term of the Framework Agreement. The tender opportunity was divided into two (2) Lots, as follows: Lot 1: * Framework Agreement duration - initial three (3) year period, with the option for firmus energy to extend the Framework Agreement on two (2) subsequent occasions of up to twelve (12) months each. * Performance Bond with a limit of liability of at least PS800,000 * Retention at 15% up to a limit of PS800,000, with that limit capable of reducing by 50% at the end of the second year of the Term (as defined in the Framework Agreement) * Parent Company Guarantee * Domestic owner occupied connections to be completed within D+15 (D representing the date of handover by firmus energy) * Contractor to carry out digitising of mains and Industrial and Commercial (I&C) services in accordance with section 1.2.6 of the Specification. Lot 2: * Framework Agreement duration - initial five (5) year period, with the option for firmus energy to extend the Framework Agreement on one (1) subsequent occasion of up to twelve (12) months. * No performance bond required * Retention at 15% up to a limit of PS300,000, with that limit capable of reducing by 1/3 at the end of the third year of the Term (as defined in the Framework Agreement) * Parent Company Guarantee * Domestic owner occupied connections to be completed within D+20 * Firmus energy to digitise the as laid drawings into its Gas Network Information Management System (GIS). Save as set out above, and within the terms of the draft Framework Agreement and the Specification, the Works required under each Lot were the same. Applicants were permitted to apply for one or both Lots, with no limit on the number of Lots which may be applied for. The contract notice for the opportunity however made clear that firmus energy would not award a Framework Agreement for both Lots. The notice confirmed that it was firmus energy's intention, following conclusion of the Procurement and subject to the terms of the Invitation to Negotiate, to either award a Framework Agreement to the top two (2) ranked compliant Tenderers for Lot 1 and terminate Lot 2; or award a Framework Agreement to the top two (2) ranked compliant Tenderers for Lot 2 and terminate Lot 1. The draft Invitation to Negotiate for the Procurement detailed the criterion and process to be adopted to determine whether firmus energy awarded a Framework Agreement for Lot 1 or Lot 2. Estimated annual contract value was circa PS10-PS11M therefore, dependent on which lot firmus energy awarded a Framework Agreement for, estimated total contract value was stated to be in the region of PS66000000 over a full potential 6 year contract period.

Lot Information

Option A

* Framework Agreement duration - initial three (3) year period, with the option for firmus energy to extend the Framework Agreement on two (2) subsequent occasions of up to twelve (12) months each. * Performance Bond with a limit of liability of at least PS800,000 * Retention at 15% up to a limit of PS800,000, with that limit capable of reducing by 50% at the end of the second year of the Term (as defined in the Framework Agreement) * Parent Company Guarantee * Domestic owner occupied connections to be completed within D+15 (D representing the date of handover by firmus energy) * Contractor to carry out digitising of mains and Industrial and Commercial (I&C) services in accordance with section 1.2.6 of the Specification.

Options: It was anticipated that the Framework Agreement would commence on 9 April 2024 and continue thereafter for an initial period of three (3) years, with the option for firmus energy to extend the Framework Agreement on two (2) subsequent occasions of up to twelve (12) months each.

Option B

* Framework Agreement duration - initial five (5) year period, with the option for firmus energy to extend the Framework Agreement on one (1) subsequent occasion of up to twelve (12) months. * No performance bond required * Retention at 15% up to a limit of PS300,000, with that limit capable of reducing by 1/3 at the end of the third year of the Term (as defined in the Framework Agreement) * Parent Company Guarantee * Domestic owner occupied connections to be completed within D+20 * Firmus energy to digitise the as laid drawings into its Gas Network Information Management System (GIS).

Options: It was anticipated that the Framework Agreement would commence on 9 April 2024 and continue thereafter for an initial period of five (5) years, with the option for firmus energy to extend the Framework Agreement on one (1) subsequent occasion of up to twelve (12) months.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-040e44
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/023016-2024
Current Stage
Award
All Stages
Planning, Tender, Award

Procurement Classification

Notice Type
Planning Notice
Procurement Type
Framework
Procurement Category
Works
Procurement Method
Selective
Procurement Method Details
Negotiated procedure with prior call for competition
Tender Suitability
Not specified
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

44 - Construction structures and materials; auxiliary products to construction (except electric apparatus)

45 - Construction work


CPV Codes

44100000 - Construction materials and associated items

45231100 - General construction work for pipelines

45231110 - Pipelaying construction work

45231111 - Pipeline lifting and relaying

45231112 - Installation of pipe system

45231220 - Construction work for gas pipelines

45231221 - Gas supply mains construction work

45231223 - Gas distribution ancillary work

45333100 - Gas regulation equipment installation work

Notice Value(s)

Tender Value
£66,000,000 £10M-£100M
Lots Value
£121,000,000 £100M-£1B
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
24 Jul 20241 years ago
Submission Deadline
9 Jan 2024Expired
Future Notice Date
24 Nov 2023Expired
Award Date
30 Jun 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
FIRMUS ENERGY (DISTRIBUTION) LIMITED
Contact Name
Not specified
Contact Email
periodcontract@firmusenergy.co.uk
Contact Phone
Not specified

Buyer Location

Locality
ANTRIM
Postcode
BT41 4LZ
Post Town
Northern Ireland
Country
Northern Ireland

Major Region (ITL 1)
TLN Northern Ireland
Basic Region (ITL 2)
TLN0 Northern Ireland
Small Region (ITL 3)
TLN0D Antrim and Newtownabbey
Delivery Location
TLN0 Northern Ireland

Local Authority
Antrim and Newtownabbey
Electoral Ward
Antrim Centre
Westminster Constituency
South Antrim

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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