Public procurement notice: Dynamic Purchasing System
Published: 2019-11-04
Buyer: West Mercia Energy (a Local Authority Joint Committee of Shropshire Council, Worcestershire County Council, Telford and Wrekin Council and Herefordshire Council)
Country: UK
Contract type: Services
Procedure: Restricted procedure
CPV classification: 09000000
Estimated value: 500000000 GBP
Submission deadline: 2019-12-02
Award criteria: The most economic tender

Technical requirements: The establishment of a dynamic purchasing system for the supply of natural gas and electricity to the customers of West Mercia Energy (WME) in its constituent authorities’ areas of Shropshire, Herefordshire, Telford and Wrekin and Worcestershire together with other customers of WME (current and potential) as identified below.
West Mercia Energy (WME) is operated under the authority of a joint committee formed under the Local Government Act 1972, the Member Authorities being Shropshire Council, Herefordshire Council, Worcestershire County Council and Telford and Wrekin Council. A joint agreement between those Member Authorities determines the governance arrangements. The Joint Committee is the elected Member body responsible for the discharge of the functions of the Member Authorities.
The objectives of the WME is to maintain effective, efficient and economic arrangements for the purchase and supply of energy at the request of and to the satisfaction of the Member Authorities and to other public bodies, non-profit making and charitable organisations, education providers, including academies and private sector organisations delivering public services on behalf of public bodies and such other organisations which may be approved by the Joint Committee (including approval via the Annual Business Plan) where it is permitted by law and is to the benefit of Member Authorities to do so.
In accordance with the above stated aims and objectives, WME are seeking to appoint energy suppliers onto a dynamic purchasing system which will be utilised and owned by WME, but operated and managed by Open Energy Market Ltd (OEM), in order to provide energy contract tendering.
The DPS is not be divided into defined lots. Instead all suppliers on accepted onto the DPS can bid for tenders that they feel they are competent in delivering. Where a tender requests more than one type of service then a supplier can bid for just part of that tender.
This procurement is being undertaken by OEM, with WME as the contracting authority for itself and as lead authority for the supply of natural gas and electricity to the customers of WME in its constituent authorities’ areas of Shropshire, Herefordshire, Telford and Wrekin and Worcestershire together with other customers of WME (current and potential) in general as further identified at the following websites, but also to include any organisation within the description in the paragraph above not so identified:
https://www.charitycommission.gov.uk/About_us/Regulation/Registering_charities_index.aspx (charities)
The supplier must at all times hold a valid supply license granted by OFGEM, and any other qualification as required by legislation throughout the duration of the DPS.
The contracting authority considers that this contract may be suitable for economic operators that are small or medium enterprises (SMEs). However, any selection of tenderers will be based solely on the criteria set out for the procurement.
West Mercia Energy (WME), is a local authority owned organisation. The Member Authorities are Shropshire Council, Herefordshire Council, Telford and Wrekin Council and Worcestershire County Council. WME is established as a Joint Committee under s.101 of the Local Government Act. WME offers a coordinated approach to energy procurement and operates contracts on behalf of its 4 Member Authorities and a number of other local authorities and outside public bodies. Current electricity volumes are approximately 560 GWh and WME handle some 6 500 electricity supplies. Current gas volumes are approximately 22 000 000 therms and WME handle some 3 500 gas supplies. The letting of energy supplier contracts by WME is subject to the EU Procurement Directive as WME is deemed to be a ‘Contracting Authority’ further to the Public Contracts Regulations 2015. WME currently operate flexible contracts for our customers for both gas and electricity. We also have requirements from existing customers and potential new customers for fixed term, fixed price contracts, and whilst our preference would be to meet the requirements of these customers through our existing flexible contracts, there are occasions when this is not possible and fixed term, fixed price contracts are required. That is the purpose of this dynamic purchasing system. Typical meter points include, but are not limited to, Schools, Universities, Police and Fire Stations, Civic Centres, Housing Portfolios and Leisure Centres. On this basis it is difficult to forecast volume requirements, but based on recent experience we estimate potential volumes requirements for both gas and electricity to be approximately 10 % of existing volumes (shown above) in addition to the potential for new customers.
For more information about this opportunity or to respond to this opportunity please visit www.openenergymarket.com/dps

Eligibility requirements: The supplier must at all times hold a valid supply license granted by OFGEM, and any other qualification as required by legislation throughout the duration of the DPS.

Award value: 500000000