Public procurement notice: Contract Award Notice
Published: 2020-05-25
Buyer: South Tyneside Council
Country: UK
Contract type: Supplies
Procedure: Open procedure
CPV classification: 42511110
Estimated value: 799865 GBP
Award criteria: The most economic tender
EU fund: ERDF

Technical requirements: Manufacture, Supply, Installation and Commissioning of a Heat Pump for the Viking Energy Network Project, Jarrow
The construction of the district energy network and associated infrastructure is subject to a separate contract, currently in the procurement phase. In order for the Council to try to achieve RHI compliance within the available timescale, it wishes to procure a specialist heat pump supplier to manufacture, supply, install and commission a pump in accordance with the specification.
South Tyneside Council is looking to construct a district energy scheme to provide heat and power for South Tyneside Council operated buildings in central Jarrow.
The new build energy centre and associated district heating and power network will provide low-cost, low-carbon energy direct to connected buildings via a dedicated network of pipelines and power cables. The proposed network will be known as the Viking Energy Network Jarrow (VENJ).
The new Energy Centre serving the network will be built on an existing council owned brownfield site at Jarrow Staithes on the south bank of the River Tyne on the outskirts of Jarrow. The energy centre serving the proposed energy network project will extract water locally from the River Tyne and use Water Source Heat Pump (WSHP) technology to feed a district energy network.
The WSHP will be supplemented by a gas fired combined heat and power unit (CHP). The electricity generated locally by the CHP will be fed by a private wire network (PWN) to the council operated buildings. A locally installed Photovoltaic (PV) farm will also contribute to the electricity supply. Surplus electricity generated by the CHP and the PV will be stored in a Battery Energy Storage System (BESS) for later release to the PWN.
The proposed operational strategy utilising the electrical generation and BESS will mean that the WSHP will run on a carbon neutral basis for much of the summer periods for domestic hot water generation for the connected network buildings.
The VENJ Energy Centre will generate and supply electricity directly over dedicated High Voltage (HV) cabling to local substations, with a local low voltage (LV) final connection into the selected council buildings. Heat will be delivered directly to buildings via an underground pipe network of pre-insulated flow and return pipework.
Initially the Energy Centre will be designed to serve 14 number buildings, 2 of which will be future connections only. The pipework network is being designed with expansion allowance and future proofing in mind. The PWN will have a connection to the local HV network from the current distribution network operator (DNO) which will assist in the event of any abnormal short-term peak loads being greater than that available through local generation and storage.
Future phases could also see heat and power supplied to many other homes, offices, shops and hotels across the town centre, with future developments in Jarrow. The overall scheme has been driven by the council’s desire to reduce Jarrow’s carbon footprint, to reduce energy costs for council and to deliver affordable heat and power to its residents.
The purpose of this specification is the outline the requirements of the Water Source Heat Pump package only which is to be tendered as a standalone contract.
• selection, design, installation and commissioning of a water source heat pump which shall be located in the proposed energy centre of the building. The energy centre building construction and the wider installation and remainder of plant and equipment shall be part of a separate contract by the main contractor;
• commissioning including seasonal commissioning. The WSHP specialist shall also allow further recommissioning visits post March 2021 once the rest of the District Heating Network comes online.
Manufacture, Supply, Installation and Commissioning of a Heat Pump for the Viking Energy Network Project, Jarrow
Any review proceedings should be promptly brought to the attention of the South Tyneside Council Head of Legal Services at Town Hall and Civic Offices, Westoe Road, South Shields NE33 2RL and will be dealt with in accordance with the requirements of the Public Contracts Regulations 2015 (‘PCR 2015’). Any review proceedings must be brought within the timescales specified by the applicable law, including, without limitation, PCR 2015. In accordance with PCR 2015, the Council will incorporate a minimum 10 calendar day standstill period from the date information on the award of the contract is communicated to tenderers.


Winner: Vital Energi Utilities Ltd
Award value: 799865
Number of bids: 1