Planning

Green Heat Network Fund (GHNF) Supplementary Contract

DESNZ & DSIT GROUP COMMERCIAL

This public procurement record has 1 release in its history.

Planning

23 Jul 2024 at 15:50

Summary of the contracting process

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The DESNZ & DSIT Group Commercial is planning a supplementary contract titled "Green Heat Network Fund (GHNF) Supplementary Contract" under the industry category of administration services. The contract process is currently in the planning stage and is intended to support the Green Heat Network Fund in England by continuing to provide grant funding to developers of zero and low carbon heat networks. Key dates include a market engagement period from July 2024 to September 2024, an invitation to tender (ITT) period from October 2024 to November 2024, evaluation and moderation in December 2024, and an anticipated award and contract signing between December 2024 and January 2025. The service is expected to commence in March 2025, and the contract will last up to 63 months, with an estimated value between £8m and £12m.

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Notice Title

Green Heat Network Fund (GHNF) Supplementary Contract

Notice Description

The Green Heat Network Fund (GHNF) is a capital scheme that provides grant funding to developers of zero and low carbon heat networks in England. Launched in March 2022, the GHNF is being implemented by a third-party delivery partner. The GHNF has been allocated funding up to 2027-28 and currently intended to run 9 application rounds, with the 9th round due to close in early 2025 The current delivery partner contract will end in June 2028. DESNZ requires a delivery partner, that will be contracted under a Supplementary contract, to continue to compliantly deploy additional GHNF funding, should it become available , from FY 2025/26 or later. In doing so, this Supplementary contract would enable an increased volume of GHNF capital funding to be deployed to additional projects over the next 2-4 financial years. It is important to note that there is currently no additional funding secured. The Supplementary contract will also provide continued Monitoring and Reporting (M&R) services to several heat network capital schemes from FY 2025/26. These schemes include: GHNF Transition Scheme, GHNF, Heat Network Investment Project - HNIP (GHNF predecessor), and HNIP Pilot. The Supplementary contract is expected to include (i) the above-mentioned M&R function as well as (ii) the following services, subject to additional capital funding being secured: - Comprehensive assessment of heat network projects applying to the GHNF (incl. commercial, techno-economic, financial background checks, and deliverability assessment) - Administration of GHNF application windows and Investment Committees - Leading on business development activities (inc. relationship management and stakeholder engagement, communications and marketing) - Project contracting and grant administration - End-to-end project management for the scheme - Project change management function (drawing on technical, legal, and engineering skills/knowledge relevant to the heat networks sector) The Supplementary contract will support delivery of the GHNF, as such the anticipated high-level requirements are as follows: * Scheme mobilisation - Knowledge transfer - Acceptance of GHNF processes * Application and assessment period - Business development management - Application and assessment windows (including Investment Committee membership and Secretariat duties) - Contracting of projects - Management of funding * Monitoring and Reporting (M&R) - M&R of projects funded by GHNF under the scope of the Supplementary contract - Management of project change requests submitted by projects funded by GHNF under the Supplementary contract. - Supporting and informing an independent evaluation of the GHNF * Exit management Under the Supplementary contract, M&R services will also be required for existing projects funded by HNIP and HNIP Pilot and for existing projects funded by GHNF and GHNF Transition Scheme. See below in Section 2.2.4) Description of the procurement.

Lot Information

Lot 1

We will run a competitive procedure through the CCS Fund Administration & Disbursement Services (FAADS) DPS (RM6322). Timeline (all dates are indicative only and subject to review) Market Engagement - July 2024 - September 2024 ITT Period - October 2024 - November 2024 Evaluation and Moderation - November 2024- December 2024 Award and Contract Signing - December 2024 - January 2025 Mobilisation - Jan 2025 - Mar 2025 Service Commencement Date - March 2025 Contract Duration The indicative Contract duration shall be for a period of up to 63 months (5 years and 3 months) inclusive of optional extensions periods. Contract Value The estimated Contract Value is anticipated to be between PS8m and PS12m Type of Agreement The supplementary contract would provide flexibility to deploy additional capital funding through additional application rounds (starting from Round 10). Due to uncertainty of this additional funding being available, the contract may be volume-based. The awarded contract may include variation clauses (contract length, funding and contract value) that can be triggered to extend the contract if more funding becomes available in coming year(s). The maximum anticipated length of agreement would be from January 2025 - April 2030. Additional information: Please confirm interest in the above opportunity by emailing Michael.ONeill@energysecurity.gov.uk by the deadline date of 12pm on 22nd August 2024. Please note framework approach communicated in the PIN is still subject to change.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-0483d8
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/022916-2024
Current Stage
Planning
All Stages
Planning

Procurement Classification

Notice Type
Planning Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Not Specified
Procurement Method Details
Not specified
Tender Suitability
Not specified
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

09 - Petroleum products, fuel, electricity and other sources of energy

66 - Financial and insurance services

71 - Architectural, construction, engineering and inspection services

72 - IT services: consulting, software development, Internet and support

75 - Administration, defence and social security services

79 - Business services: law, marketing, consulting, recruitment, printing and security


CPV Codes

09323000 - District heating

66120000 - Investment banking services and related services

66150000 - Financial markets administration services

66171000 - Financial consultancy services

71313000 - Environmental engineering consultancy services

71314300 - Energy-efficiency consultancy services

72224000 - Project management consultancy services

75100000 - Administration services

75130000 - Supporting services for the government

75131000 - Government services

79411000 - General management consultancy services

Notice Value(s)

Tender Value
£10,000,000 £10M-£100M
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
23 Jul 20241 years ago
Submission Deadline
Not specified
Future Notice Date
30 Sep 2024Expired
Award Date
Not specified
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Planned
Lots Status
Planned
Awards Status
Not Specified
Contracts Status
Not Specified

Contracting Authority (Buyer)

Main Buyer
DESNZ & DSIT GROUP COMMERCIAL
Contact Name
Not specified
Contact Email
michael.oneill@energysecurity.gov.uk
Contact Phone
Not specified

Buyer Location

Locality
LONDON
Postcode
SW1A 2EG
Post Town
South West London
Country
England

Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI3 Inner London - West
Small Region (ITL 3)
TLI35 Westminster and City of London
Delivery Location
Not specified

Local Authority
Westminster
Electoral Ward
St James's
Westminster Constituency
Cities of London and Westminster

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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