Public procurement notice: Contract Notice
Published: 2020-09-16
Buyer: Mendip District Council
Country: UK
Contract type: Services
Procedure: Open procedure
CPV classification: 71314000: Energy and related services
Estimated value: 300000 GBP
Submission deadline: 2020-10-30
Award criteria: The most economic tender

Technical requirements: Mendip District Council is seeking to award one (1) suitably experienced, qualified and competent consultant a contract for the provisions of consultancy support services.
The authority is seeking to pursue energy investment projects that drive a commercial return for the authority with up to twenty million pounds (GBP 20 000 000) of debt finance being available. A consultant is required to support the Authority in its energy investment projects.
South Somerset District Council (SSDC) are hosting and leading this procurement process on behalf of Mendip District Council (MDC). Please note only Mendip District Council will award a contract for the provision of the Services described within this procurement exercise.
Mendip District Council is seeking to award one (1) suitably experienced, qualified and competent consultant a contract for the provisions of consultancy support services.
The authority is seeking to pursue energy investment projects that drive a commercial return for the authority with up to twenty million pounds (GBP 20 000 000) of debt finance being available. A consultant is required to support the authority in its energy investment projects.
The authority wishes to acquire a secure, good quality and long term income stream from projects in order to protect the authority’s medium- to long-term financial position, and to enable it to meet its strategic objectives as set out in its corporate plan.
1.1 are flexible on matters of the type and manner of the investment; type of project; geographic location; use classes; and lot size.
1.2 from a financial perspective are that the Investment is likely to generate a target net initial yield of 1.5 % nett return (after borrowing costs) (‘minimum target return’),
The authority’s preference is to acquire stand-alone projects/be the sole investor but it is prepared to consider other appropriate transaction structures to achieve its objective.
1) Identify commercial opportunities, both on- market and off-market that meet the high level criteria.
2) Review any unsolicited particulars that are sent to the authority direct. All direct approaches will be forwarded to the consultant without receipt having been acknowledged.
3) Prepare a high level business case (‘OBC’) for each commercial opportunity that is identified that meets the high-level criteria and send the OBC with the investment particulars to the authority’s commercial transformation manager.
4) Where requested by the board in respect of a commercial opportunity, prepare a detailed report authority setting out and explaining the risks and opportunities attached to the relevant commercial opportunity (‘Report and Investment Appraisal’) and providing a financial model for the Investment which identifies the potential for achieving the minimum target return (with risk and scenario modelling where appropriate)..
5) Where required, seek credit reports and other insight into possible target, partner or tenants’ financial standing and business prospects, and support the authority’s finance manager in adequately appraising associated risks and opportunities.
6) Recommend which further reports should be obtained to meet prudent due diligence requirements and liaise with specialists in the consultant’s firm/practice who will be instructed (at additional fees to be agreed) to provide or procure them.


Award value: 300000