Award

Commercial Heating and Ventilation contract extension Contract

DACORUM BOROUGH COUNCIL

This public procurement record has 1 release in its history.

Award

12 Jun 2025 at 13:27

Summary of the contracting process

The procurement process involves Dacorum Borough Council, which has extended a contract for Commercial Heating and Ventilation services with Orion Building Engineering Services Limited. The contract, initially established on 30th June 2015, involves maintenance and installation services for properties under the council's responsibility and will be extended until 31st March 2026. This extension acts as a bridging period, allowing the council to conduct a re-procurement process for a long-term successor, with a new service anticipated to commence by 1st April 2026. The contract falls under the service category for repair and maintenance of central heating, located in the Borough of Dacorum, Hertfordshire. The procurement stage is at the award phase, employing a limited procurement method, specifically negotiated without publication of a contract notice, aligning with scenarios stipulated in the Public Contract Regulations 2015.

This extension creates significant opportunities for businesses specialising in heating, ventilation, and maintenance services, particularly those with experience in handling public sector contracts. With the opportunity for a new long-term contract post-2026, SMEs with robust service capabilities in central heating and ventilation are well-positioned to engage. Companies can benefit by participating in the upcoming market engagement process, which aims to develop a comprehensive procurement strategy for the forthcoming contract. This scenario offers a pathway for growth by establishing a partnership with Dacorum Borough Council, leveraging existing expertise in the regional maintenance sector.

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Notice Title

Commercial Heating and Ventilation contract extension Contract

Notice Description

On June 30, 2015, Dacorum Borough Council ("Dacorum") entered a contract for an initial period of five-years with Orion Building Engineering Services Limited ("OBES") for Commercial Heating and Ventilation services (the "Contract"). The Contract included annual extensions up to ten years, contingent on supplier performance. The Contract entails maintaining and installing commercial heating and ventilation systems for properties under the responsibility of Dacorum. It includes routine maintenance and repairs for council properties including residential buildings and corporate assets. This Voluntary Ex-Ante Transparency Notice (VEAT) relates to a proposed extension of the Contract for a further nine (9) months with a longstop date of March 31, 2026, to allow Dacorum to conduct a re-procurement exercise for the long-term successor to the Contract.

Lot Information

Lot 1

Dacorum plans to extend the term of the Contract with OBES for a bridging period of nine months to conduct a re-procurement exercise for the long-term successor to the Contract. The extension will allow Dacorum sufficient time to run a market-engagement, commissioning and re-procurement process, with the new service to start by April 1, 2026.

Procurement Information

Award of a contract without prior publication of a call for competition in the cases listed below: * The procurement falls outside the scope of application of the directive. The existing Contract with OBES commenced on June 30, 2015 and expires on June 30, 2025. Dacorum intends to extend the Contract by nine (9) months, with provision to terminate earlier, to allow Dacorum time to run a comprehensive re-procurement exercise for the appointment of a long-term successor to the Contract. Dacorum's position is that the proposed extension is not a permitted modification under Regulation 72(1)(e) of the Public Contract Regulations 2015 (as amended) ("PCR") (non-substantial modifications) and that none of the conditions set out in Regulation 72(8) are met. With reference to Regulation 72(8)(a), the proposed modification will not render the Contract materially different in character from the one initially concluded as there will be no change to the services or works to provide for the extension period (either in terms of the nature of the works/services or the quantity). The modification is an extension of term only. With reference to Regulation 72(8)(b), Dacorum does not consider that the modification introduces conditions which, had they been part of the initial procurement procedure, would have- (i) allowed for the admission of other candidates than those initially selected, (ii) allowed for the acceptance of a tender other than that originally accepted, or (iii) attracted additional participants in the procurement procedure. The only effect of the modification is to extend the term of the Contract and so Dacorum does not consider that there would have been any change to the outcome of the original procurement. With reference to Regulation 72(8)(c), the modification will not change any of the terms of the Contract other than the term, and so there will be no change to the economic balance of the contract. Dacorum does not consider that the modification will extend the scope of the Contract considerably within the meaning of Regulation 72(8)(d) in the context of the Contract as a whole (10 years). No change is proposed to the nature or quantity of the works and services and no new services or works will be included in the scope. The period of the extension may be reduced if the procurement exercise is completed before the end of the extension period. Regulation 72(8)(e) of the PCR is not engaged as there is no change to the contractor. The purpose of the modification is to provide a 'bridging period' to conduct a comprehensive re-procurement exercise for the long-term successor to the Contract. The modification will therefore allow continuity of service and value for money for Dacorum while it conducts this exercise, the scope of which will include market testing, assessment of risks and uncertainty within the construction and housing repair sector, corresponding development and design of procurement strategy, managing the orderly wind-down and exit of the Contract with the existing supplier and mobilisation of the new contract.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-0547c5
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/031966-2025
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Limited
Procurement Method Details
Negotiated without publication of a contract notice
Tender Suitability
Not specified
Awardee Scale
SME

Common Procurement Vocabulary (CPV)

CPV Divisions

50 - Repair and maintenance services


CPV Codes

50720000 - Repair and maintenance services of central heating

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£180,000 £100K-£500K

Notice Dates

Publication Date
12 Jun 20258 months ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
10 Jun 20258 months ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Not Specified
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
DACORUM BOROUGH COUNCIL
Contact Name
Sean Lally-Randall
Contact Email
sean.lally-randall@dacorum.gov.uk
Contact Phone
Not specified

Buyer Location

Locality
HEMEL HEMPSTEAD
Postcode
HP1 1DN
Post Town
Hemel Hempstead
Country
England

Major Region (ITL 1)
TLH East (England)
Basic Region (ITL 2)
TLH2 Bedfordshire and Hertfordshire
Small Region (ITL 3)
TLH27 South West Hertfordshire
Delivery Location
TLH2 Bedfordshire and Hertfordshire

Local Authority
Dacorum
Electoral Ward
Hemel Hempstead Town
Westminster Constituency
Hemel Hempstead

Supplier Information

Number of Suppliers
1
Supplier Name

ORION BUILDING ENGINEERING SERVICES

Open Contracting Data Standard (OCDS)

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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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