Report to CABINET
Contract Award: - Framework for Solar PV
(up to 150kWp) to Oldham Council and all
AGMA and Associate Member Authorities
Portfolio Holder:
Councillor Abdul Jabbar- Cabinet Member for Finance
Officer Contact: Executive Director Corporate and Commercial
Services
Report Author: Barney Harle, Capital Works & Energy Manager
Ext. 1985
27th April 2015
Reason for Decision
To seek approval to establish a framework for the final survey, design, supply, installation
and connection of solar photovoltaic panels (up to 150kWp) to Oldham Council and all
AGMA and Associate Member Authorities
Executive Summary
To report the outcome of the tendering exercise and seek approval to establish a
framework for the design and installation of solar photovoltaic panels
Recommendations
To note the results of the tender exercise which resulted in submissions on 13th January
2015.
To establish a framework arrangement whereby future requirements for solar photovoltaic
installations can be procured by mini-competition rather than full scale OJEU tenders
27th April 2015
Cabinet
Contract Award: - Framework for Solar PV (up to 150kWp) to Oldham Council and all AGMA
and Associate Member Authorities
1
Background
1.1
Oldham Council, and other similar authorities in AGMA, own a number of buildings and
sites which would be suitable for the installation of solar photovoltaic (PV) panels which
could be used to generate electricity and reduce carbon emissions.
1.2
A number of sites have been identified in Oldham and other authorities but there is
significant inertia in developing these sites due to a number of issues including
procurement. It is believed that if a framework existed for these installations then the
number of sites being brought forward for development would increase.
1.3
A number of framework arrangements exist for the installation of solar PV panels on
domestic scale properties but not on commercial scale properties. Under present
procurement rules each of these potential installations would require a specific tendering
process to procure any installation.
2
Current Position
2.1
Oldham Council’s procurement team with the assistance of Unity Partnership put together
framework tender documents generic projects including as an example a potential pilot
project on the roof of Tommyfield Indoor Market Hall.
2.2
An Open OJEU Tender process was issued via The Chest system and 27nr tenders were
received on 13th January 2015. Bidders in alphabetical order are:
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Avonside
Belectric
C&K
Capco / NTC
Ecosphere
Eco2solar
Emtec
EnergyGain
Feed It Green
GHG
Henry Boot
Herbert T Forrest
iGen
Inside2outside
iZen
Lightsource
Mark Group
Mears Ltd
Redsky
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Renewable4Business
Shepherd Engineering
SolarKing
Solarlec
Solinium
Steve Duckworth
Styles and Wood
The Green Electrician
2.3
All bidders were invited to submit bids / information for medium sized solar photovoltaic
installations of up to 150kWp, including the following services:
• Survey
• Design
• Supply
• Install
• Connection
2.4
All bidders were also asked to provide a cost for the installation of solar PV panels on
Tommyfield Market.
2.4.1
The tenders were scored on both quality and pricing issues. The winning supplier to be
appointed to carry out the works at Tommyfield Market. The winning supplier and the next
three most economically advantageous tenderers to be appointed to the Framework for
potential future projects, in Oldham and AGMA-wide.
2.5
In accordance with the Council’s Contract Procedure Rules, the evaluation of the tender
submissions has sought to identify the submission offering best value, based upon a
combination of economy, efficiency and effectiveness. The weightings applied to the
tender submissions have been:
Technical Capacity
Price
Social Value
Early Payment
50%
40%
5%
5%
2.6
The tender evaluation was undertaken by Barney Harle (Capital Works and Energy
Manager) in conjunction with Suzanne Barrett and Gaynor Gamble from Procurement
Team.
2.7
Bidders were asked to complete a PASS / FAIL ‘qualifying question’. If the bidders scored
FAIL their submission would not be evaluated.
2.8
Five of the 27 bidders failed the qualifying question.
2.9
The outcome of the evaluation process was that Renewable4Business scored 93.2% and
submitted the tender offering the most economically advantageous package with relation
to cost and technical ability to deliver the Tommyfield Market scheme.
2.10
The next 3 most economically advantageous packages to be placed on the Framework
are Styles and Wood scoring 89.04%, The Green Electrician scoring 90.00% and
Campbell and Kennedy scoring 92.41%.
2.11
The proposed contract is for a period of 3 years with the option to extend for a further year.
3
2.12
It is recommended that once the framework is established an invest to save proposal is
prepared for the works at Tommyfield Market and the contract for the solar PV installation
at Tommyfield Market is awarded to Renewable4Business as noted above, and that they
along with Styles and Wood, The Green Electrician and Campbell and Kennedy are
placed on the Framework.
3
Options/Alternatives
3.1
Option 1 – Not establish a framework – this would continue with the present inertia around
procurement issues.
3.2
Option 2 – Establish a framework – this would help to ease some of the inertia associated
with these projects and encourage the installation of solar PV systems not only in Oldham
but across AGMA. The establishment of a framework does not expose Oldham to any
financial commitment as each project would be a distinct proposal subject to individual
business case presentation and contract.
4
Preferred Option
4.1
Option 2 – Establish a framework – this would help to ease some of the inertia associated
with these projects and encourage the installation of solar PV systems not only in Oldham
but across AGMA. The establishment of a framework does not expose Oldham to any
financial commitment as each project would be a distinct proposal subject to individual
business case presentation and contract.
5
Consultation
5.1
Internal consultation has taken place with the procurement team, policy team, energy
managers, market management and Cabinet member for Finance and HR have been
informed concerning the approach and the recommended option.
6
Financial Implications
6.1
This report is to establish a framework and does not commit Oldham Council to any
installations or financial commitments.
All proposals for installations would be presented to the Capital Investment Programme
Board (C.I.P.B.) separately, with project specific business cases, each would then be
reviewed on the financial benefits and social value specific to each project.
A demonstration of the costs and benefits of a potential project are presented in Appendix
A for illustrative purposes only based upon the priced project proposal received for
Tommyfield Market as part of this tender process. Carl Holdaway – Senior Accountant.
7
Legal Services Comments
7.1
This is a Framework Agreement which has been procured in compliance with the Public
Contracts Regulations 2006. A Framework Agreement does not guarantee any works will
be commissioned and therefore there is no legal or financial commitment until such time
as a call off contract (following a mini competition amongst the framework providers) for a
particular scheme is awarded.
Rebecca Coldicott
4
8.
Co-operative Agenda
8.1
The framework supports our co-operative ambition. As a Co-operative Council we are
committed to operating ethically and this includes improving our environmental
performance, while increasing environmental sustainability across our assets, operations
and services. [Jonathan Downs – Principal Policy Officer]
9
Human Resources Comments
9.1
None
10
Risk Assessments
10.1
N/a (Mark Stenson)
11
IT Implications
11.1
None
12
Property Implications
12.1
Establishment of the Framework will streamline the process for exploration and
maximizing revenue generating potential within the Council’s corporate estate. (Cath
Conroy)
13
Procurement Implications
13.1
This work has been procured in line with the Council’s CPR’s and EU Regulations.
13.2
All insurance documentation and bespoke method statements and risk assessments must
be requested by the stakeholder, received and checked to be in compliance with the
Council’s requirements before all projects commences.
13.3
The financial status of all 4 suppliers selected for the framework has been assessed by the
Council (Dun & Bradstreet report) and all are lower than average risk company.
13.4
Renewable4Business proposed the best commercial solution for the Tommyfield scheme
and for all further schemes the selected framework suppliers will be invited to submit prices
via a formal mini competition.
13.5
Social Value - The winning bidder has committed to create local apprentice opportunities
and have already identified office space within Oldham. They will offer the living wage, and
are committed to running workshops with the job centre and work with local schools.
13.6
Early Payment Scheme – 2.20% offered.
[Suzanne Barrett – Procurement Manager]
14
Environmental and Health & Safety Implications
14.1
Environmental: This framework will enable the installation of solar PV on a range of public
and community buildings, including Tommyfield Market, schools and community centres.
Solar PV produces low carbon electricity and will contribute to meeting the 48% carbon
emissions reduction target in Oldham’s Climate Change Strategy. [Andrew Hunt –
Environmental Policy Manager]
5
14.2
Health and safety documentary evidence was submitted by Renewables4Business,
Styles and Wood, The Green Electrician and Campbell and Kennedy (C&K)in compliance
with that requested via the invitation to tender process. Current CHAS accreditation
certificates for Renewables4Business and The Green Electrician are to be obtained by
procurement (both companies did submit evidence of accreditation however during the
tendering process these have expired).
There are no prosecutions or enforcement notices recorded on the Health and Safety
Executive enforcement website in respect of all four companies for the past 3 years. It
must however be noted that Styles and Wood were prosecuted by the Health and Safety
Executive in 2010 (sentenced in 2011) for offences under the Health and Safety at Work
Act 1974, in relation to asbestos. Furthermore, in 2010, the company were also served
with a Prohibition Notice from the Health and Safety Executive, for offences under the
Health and Safety at Work Act 1974 and the Work at Height Regulations 2005. [Laura
Smith – Health & Safety]
15
Equality, community cohesion and crime implications
15.1
None
16
Equality Impact Assessment Completed?
16.1
No
17
Key Decision
17.1
Yes
18
Key Decision Reference
18.1
CFHR-04-15
19
Background Papers
19.1
None
20
Appendices
20.1
None
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