Public procurement notice: Contract Notice
Published: 2019-06-12
Buyer: Midlothian Council
Country: UK
Contract type: Works
Procedure: Competitive dialogue
CPV classification: 09300000 | 09310000 | 09323000 | 09330000: Solar energy | 38551000
Estimated value: 100000000 GBP
Submission deadline: 2019-07-10
Award criteria: The most economic tender

Technical requirements: Midlothian Council (the Council) is seeking to procure an energy partner. The Council wishes to identify a partner with the most economically advantageous tender, to work with the Council on the scoping, design, procurement, financing, implementation, delivery, operation and maintenance of decentralised energy projects in Midlothian and surrounding areas (including but not limited to district heating, direct wire electricity, solar PV and electric vehicles) together with associated works, services and supplies. The first project likely to be progressed is the development, delivery and operation of a top up/back up energy centre and associated district heating network to serve the new emerging Shawfair Town. The primary source of low carbon heat will be from an adjacent existing Energy from Waste facility. The Council requires elements of this project to be commissioned by September 2021 to meet applicable funding conditions.
Midlothian Council area and surrounds. Details of the site for the Millerhill Low Carbon District Heating Project are outlined in the procurement documents.
Midlothian Council is seeking to procure an energy partner. The Council wishes to identify a partner with the most economically advantageous tender, to work with the Council on the scoping, design, procurement, financing, implementation, delivery, operation and maintenance of energy projects in Midlothian and surrounding areas (including but not limited to district heating, direct wire electricity, solar PV and electric vehicles) together with associated works, services and supplies. It is anticipated that this will involve development of a joint venture with the Council. The nature of the joint venture and potential funding and financing solutions will be explored during dialogue but is likely to involve the creation of a jointly owned Energy Services Company (ESCO). The duration of the joint venture will also be discussed in dialogue but it is possible that if an ESCO is established that it would not have a pre-determined lifespan. The Council will then enter into a concession agreement with the ESCO for the development and delivery of projects involving Council heat loads or land or generally within Council control. The concession duration will be explored during dialogue but the Council anticipates that this will be 25-40 years.
The first project likely to be progressed is the development, delivery and operation of an energy centre and associated district heating network to serve the new emerging Shawfair Town of up to 2 900 homes plus associated Council buildings such as a new school. The Council requires elements of this scheme to be commissioned by September 2021 to meet applicable funding conditions. The Council anticipates that this project will involve a concession granted to the ESCO by the Shawfair developer, Shawfair LLP. The concession duration will be explored during dialogue but the Council anticipates that this will be 25-40 years.
The heat source identified for the initial projects is the energy from waste plant situated at the former Millerhill Marshalling Yards in Midlothian and operated by FCC under contract with City of Edinburgh Council for the benefit of City of Edinburgh Council and Midlothian Council. It is anticipated that other projects will subsequently be identified and awarded to the successful partner. The partner will be responsible for identifying and developing such projects. This will be subject to all necessary permissions, partner performance and the availability of funding or financing. In each case these projects, including the Shawfair scheme, may involve the sale of energy to the Contracting Authority and the other Contracting Authorities named in this notice.
Owing to character limitations in the OJEU Notice not all criteria and information relating to this procurement can be included in this notice. The Objective and Non -Discriminatory Criteria are set out in full in the ESPD and ESPD Instructions which can be accessed through the website referenced in Section I.3.
Please see Information Memorandum which can be accessed through the website referenced in Section I.3.
Full details can be found in the ESPD and ESPD Instructions which can be accessed through the website referenced in Section I.3 of this notice.
Bidders will be required to have an average yearly turnover of a minimum of 25 000 000 GBP for the last 3 years. The average turnover stated shall be based upon the figures reported in the last 3 year’s audited financial statements. The average shall be a weighted average with the most recent year’s turnover counting for 60 percent, the next most recent year counting for 30 percent, and the third most recent counting for 10 percent.
Where, for any valid reason, the bidder does not have 3 year’s audited financial statements available, the Council may accept other forms of documentation which it considers acceptable as proof.
Where any bidder is relying on the financial and economic standing of another economic operator this must be clearly stated and will only be acceptable where:
1) The economic operator which is being relied on completes its own ESPD (including Question 4B) in accordance with 2C.1; and
2) A letter of support is provided by the economic operator being relied on clearly referencing (i) the economic operator it is guaranteeing;
(ii) providing an undertaking to guarantee that economic operator's obligations under the Project;and
A. The Council will use Experian to check the financial stability/risks associated with each bidder and require that they have at least an Experian credit score of at least 51 out of 100. Failing that, the Council will use reasonable measures to ensure that appointing the bidder does not provide an elevated risk in terms of their financial stability and, will request such information as may be reasonably necessary to ascertain that.


Award value: 100000000