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Energy and related services

Published 16/09/2020

Somerset

Country UK

Status Contract notice

CType Services

Tender Details
Reference2020/S 180-435861
Award CriteriaThe most economic tender
ProcurementOpen procedure
Main ActivitiesGeneral public services
Common Procurement VocabularyEnergy and related services
Date Published16th Sep 2020

Somerset

Country UK

Status Contract notice

CType Services

Contract notice

Services

Legal Basis:
Directive 2014/24/EU

Section I: Contracting authority

I.1)Name and addresses
Official name: Mendip District Council
Postal address: Cannards Grave Road
Town: Shepton Mallet
NUTS code: UKK23 Somerset
Postal code: BA4 5BT
Country: United Kingdom
Contact person: C/O Procurement@southsomerset.gov.uk
E-mail: Procurement@southsomerset.gov.uk
Telephone: +44 1935462076

Internet address(es):

Main address: http://www.southsomerset.gov.uk/

Address of the buyer profile: http://www.southsomerset.gov.uk/

I.2)Information about joint procurement
I.3)Communication
The procurement documents are available for unrestricted and full direct access, free of charge, at: www.supplyingthesouthwest.org.uk
Additional information can be obtained from the abovementioned address
Tenders or requests to participate must be submitted electronically via: www.supplyingthesouthwest.org.uk
I.4)Type of the contracting authority
Regional or local authority
I.5)Main activity
General public services

Section II: Object

II.1)Scope of the procurement
II.1.1)Title:

Mendip District Council: Consultancy Support for Energy Investment Projects

Reference number: DN497690
II.1.2)Main CPV code
71314000 Energy and related services
II.1.3)Type of contract
Services
II.1.4)Short description:

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.

Important note:

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.

II.1.5)Estimated total value
Value excluding VAT: 300 000.00 GBP
II.1.6)Information about lots
This contract is divided into lots: no
II.2)Description
II.2.1)Title:
II.2.2)Additional CPV code(s)
71314000 Energy and related services
II.2.3)Place of performance
NUTS code: UKK23 Somerset
II.2.4)Description of the procurement:

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.

The authority’s high-level investment criteria:

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 ‘high-level criteria’.

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.

Energy investment consultant’s scope of duties

A. Financial and commercial due diligence

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.

7) Where there are reports in existence which have not been produced to provide a duty of care to the authority, advise on which and should be novated to the authority.

8) Assist the authority’s officers in the preparation of board reports recommending that investments should be made and progressing through to financial close.

9) Attend board meetings in Shepton Mallet when each commercial opportunity will be considered.

B. Support legal due diligence

1) Act as the authority’s financial and commercial adviser during the process up to financial close, negotiating with the seller, target and other relevant third parties (and in each case each of their representatives) on behalf of the authority to agree the price and other terms and conditions, of each acquisition.

2) Provide detailed heads of terms for the proposed Investment commercial opportunities in respect of which the OBC has been approved by the authority.

3) Support the authority’s legal advisers in the preparation and despatch of formal offers to make an Investment (including provision of reasonable assistance to finalise such documents.

4) Liaise with and support the authority’s lawyer and officers to ensure that all issues relating to the acquisition are resolved to required timescales.

5) Work alongside the authority’s legal and other professional advisers and offer reasonable assistance to aid those legal and other professional advisers to fulfil their duties in respect of progressing the matter through to financial close.

6) Advise the authority on whether it is necessary to enter into option agreements, lock-out agreements, and non-disclosure agreements for each commercial opportunity.

7) Facilitate the provision of all legal papers, drawings, property, and technical information required for the Investment to be appraised and analysed in detail (or access to a data room where appropriate).

C. General

1) Provide effective and timely advice at all times.

2) Act as the authority’s representative in all dealings with the sellers and their advisors, including arranging access for inspections; requesting further information; and general care and attention throughout.

D. Strategic investment advice

1) Advise the authority on strategic opportunities to increase the value of the commercial opportunity if an investment were to be made, including an appraisal of the risks in implementing those proposals.

2) Where knowledge of the authority’s interest in a commercial opportunity may cause a risk of de stabilising or raising prices unnecessarily, to advise the authority, and if so requested, to keep the identity of the authority as potential investor in project and/or commercial opportunity confidential.

3) Advise the authority on price reductions that should be specified, or conditions that should be imposed, to take proper account of any unusual risks or constraints identified by it or reported to it during the due diligence process.

4) Having regard to point 4 above, the need to ensure there is a robust portfolio, provide where practicable/manageable a realistic and robust delivery timetable and milestones pre- and post-acquisition. This may include a good occupier/development/marketing strategy for a mixed investment portfolio.

5) At the outset and as the authority’s portfolio of investments grows, advise the authority on which investments provide a suitable blend of investments to achieve a balance between spreading of risk across different types of projects and maximising opportunities to create efficiencies (and increased returns) by investing in similar types of project.

Important note:

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.

II.2.5)Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
II.2.6)Estimated value
Value excluding VAT: 300 000.00 GBP
II.2.7)Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 24
This contract is subject to renewal: yes
Description of renewals:

2 years with option for further 3 years (2 + 1 + 1 + 1).

II.2.10)Information about variants
Variants will be accepted: no
II.2.11)Information about options
Options: no
II.2.12)Information about electronic catalogues
II.2.13)Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds: no
II.2.14)Additional information

Section III: Legal, economic, financial and technical information

III.1)Conditions for participation
III.1.1)Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers
III.1.2)Economic and financial standing
III.1.3)Technical and professional ability
III.1.5)Information about reserved contracts
III.2)Conditions related to the contract
III.2.1)Information about a particular profession
III.2.2)Contract performance conditions:
III.2.3)Information about staff responsible for the performance of the contract

Section IV: Procedure

IV.1)Description
IV.1.1)Type of procedure
Open procedure
IV.1.3)Information about a framework agreement or a dynamic purchasing system
IV.1.4)Information about reduction of the number of solutions or tenders during negotiation or dialogue
IV.1.6)Information about electronic auction
IV.1.8)Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: no
IV.2)Administrative information
IV.2.1)Previous publication concerning this procedure
IV.2.2)Time limit for receipt of tenders or requests to participate
Date: 30/10/2020
Local time: 12:00
IV.2.3)Estimated date of dispatch of invitations to tender or to participate to selected candidates
IV.2.4)Languages in which tenders or requests to participate may be submitted:
English
IV.2.6)Minimum time frame during which the tenderer must maintain the tender
IV.2.7)Conditions for opening of tenders
Date: 30/10/2020
Local time: 13:00
Place:

Section VI: Complementary information

VI.1)Information about recurrence
This is a recurrent procurement: no
VI.2)Information about electronic workflows
VI.3)Additional information:
VI.4)Procedures for review
VI.4.1)Review body
Official name: South Somerset District Council
Postal address: Brympton Way
Town: Yeovil
Postal code: BA20 2HT
Country: United Kingdom
VI.4.2)Body responsible for mediation procedures
VI.4.3)Review procedure
VI.4.4)Service from which information about the review procedure may be obtained
VI.5)Date of dispatch of this notice:
11/09/2020
More Tenders »
Tender Details
Reference2020/S 180-435861
Award CriteriaThe most economic tender
ProcurementOpen procedure
Main ActivitiesGeneral public services
Common Procurement VocabularyEnergy and related services
Date Published16th Sep 2020