Biomass Wood Fuel Pellet Supply Framework
Biomass Wood Fuel Pellet Supply
Framework
Buyers’ Guide
Version 1.2 – 4 November 2014
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Contents
Section
1
2
3
4
5
6
7
8
Annex A
Annex B
Description
Page
Foreword and acknowledgements
Introduction
Framework overview
Framework title
Framework period
Call-off contract period
Number of Lots
Options to purchase under the framework
Framework service providers
Entitlement to use the framework
Voluntary standstill period for call-off contracts
Framework benefits
Scottish Procurement point of contact
Call-off contract
Direct award
Mini-competitions
Price
Hints and Tips
Frequently Asked Questions
Additional recommended reading
Order form 1 – Direct Buy (emergency orders)
Order form 2 – Mini Competition
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1.
Foreword and acknowledgements
Scottish Procurement aims to deliver benefits to the people of Scotland through
improved value for money for taxpayers, improved goods and services for all our
citizens and economic opportunities for Scotland. This is achievable through effective
collaboration throughout the procurement cycle.
Scottish Procurement would like to acknowledge the work, support and contribution
from all sector representatives.
2.
Introduction
This document has been developed to provide a simple guide for public bodies who are
considering or intending purchasing Biomass Pellets using the Biomass Wood Fuel
Pellet Supply Framework.
Although this framework includes a direct-buy option for emergency orders, best value
will only be achieved through this framework by running a mini-competition and
committing to regular deliveries over a fixed time period.
This document should also be read in conjunction with the mini-competition award
procedure (Framework agreement Schedule 4) which provides guidance on the process
to be followed when using the framework agreement to establish a call-off contract.
3.
Framework overview
Framework title
Biomass Wood Fuel Pellet Supply Framework Reference Number SP13-01
Framework period
The framework is for an initial three year period from 1 September 2013 to 31 August
2016 with options to extend for a further 12 month period.
Call-off contract period
Call-off contracts under the framework are not limited to the framework period. Typically
a call-off contract can be anything up to five years. The call-off contact period will be
determined at mini-competition.
Number of Lots
There is only one lot under the framework.
Options to purchase under the framework
There are two ways to purchase pellets under the framework, either by direct award of
mini-competition.
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Framework service providers
This is a multi-supplier framework with four framework service providers:
Rank Framework service provider
1
2
3
4
HWEnergy Ltd – Scottish Small and Medium-sized Enterprise (SME)
Puffin Pellets Ltd – Scottish SME
William Y Watson t/a Angus Biofuels – Scottish SME
Balcas Timber Ltd – Northern Irish
Full contact information is detailed below:
William Y Watson t/a
Angus Biofuels
Bill Watson
Tel: 01307 466699 or
Mobile: 07976 820664
Fax: 01307 462278
Unit 1 Eco Park
Carseview Road
Forfar
DD8 3BS
Puffin Pellets Ltd
Julie McWilliam
Tel: 01464 820011
North Road Industrial Estate
North Road
Insch
AB52 6XP
Puffin Pellets website
HWEnergy Ltd
Bruno Berardelli
Tel: 01397 706412
Lochaber Rural Complex
Torlundy
Fort William
PH33 6SQ
HWEnergy website
Balcas Timber Ltd
Neil Holland
Tel: +44 (0) 78 9015 8025
Fax: 44 (0) 28 6632 4082
Laragh
Enniskillen
Co. Fermanagh
Northern Ireland
BT94 2FQ
Balcas (Brites) website
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Entitlement to use the framework
It is the responsibility of any buying organisation wishing to use the framework
agreement to satisfy itself that it is eligible to do so. Entitlement can be established
from the terms of the OJEU advert (OJEU reference number: 2013/S 069114689).Sections I.4, II.1.5 & VI.3 of the advert refer;) and guidance on this can be
found in Annex A of Scottish Government Guidance on Framework Agreements. If
there is any doubt, legal advice should be sought.
Voluntary standstill period for Call-off contracts
Scottish Procurement Policy Notice (SPPN) 3/2010 dated 24 February 2010 referred to
guidance on changes to standstill period. Whist standstill periods are not required for
Call-off contracts public bodies should consider the implications if they do not. Below is
an abstract from SPPN 3/2010:
“Voluntary standstill - above threshold Call-off contracts
6.25 As stated above, public bodies do not have to follow the standstill rules
when awarding a call-off contract under a framework agreement or dynamic
purchasing system.
6.26 However, they may choose to follow the standstill rules on a voluntary basis
when awarding a call-off contract under a framework agreement or dynamic
purchasing system by notifying all parties to the framework agreement or
dynamic purchasing system of the contract award decision.
6.27 If the award of an above threshold call-off contract is challenged in court on
the basis that the public body has breached the rules governing the award of
contracts under a framework agreement by mini-competition or the rules
governing the award of contracts under a dynamic purchasing system, the court
may render the call-off contract ineffective 5. However, if a public body has
followed the standstill rules on a voluntary basis (i.e. by informing tenderers in
writing of its decision in relation to the award of the contract and providing a
summary of the reasons why the tenderer was unsuccessful), the court cannot
declare the call-off contract ineffective and the only remedy available to the
challenger will be damages. Public bodies can therefore protect themselves from
an ineffectiveness order in these circumstances by following the standstill rules
on a voluntary basis”
To see this and the latest SPPNs click here
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Framework benefits
The benefits for public bodies using the framework is that this will:
Public sector - commercial

Reduced costs to the public sector
Public sector – environmental
Sustainability
 Support delivery of Scottish Government policy for a low carbon Scotland
Economic
 Creating demand for a fledgling market
 Supply chain integration
 Bringing together public sector requirements to generate a viable market
 Support rural SMEs and rural economies
Scottish Procurement point of contact:
Ann Hoyland
Senior Portfolio Specialist | Scottish Procurement
The Scottish Government, Europa Building, 450 Argyle St, Glasgow, G2 8LG
Tel: (0141-24) 25896
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4.
Call-off contract
There are two options available – Direct Buy & Mini Competition.
Order form 1 (see Annex A for copy) – Direct Buy (Emergency orders)
The order of preference is as follows:
Using the pricing schedule, the framework service provider will be ranked according to
total price, with the framework service provider offering the lowest price being ranked
number 1, the next service provider with the next lowest price being ranked second,
and so on. This ranked list shall be the order of preference. Delivery distances shall be
the distance between the framework public body’s delivery site and the framework
service providers’ depot from which deliveries will be made. Delivery distances may be
calculated by the framework public body by any reasonable means.
The framework public body shall complete Part A of the order form and send it by notice
sent by fax or electronic mail to the framework service provider listed as
number 1 of the order of preference. If, for reasons of urgency, it is not possible to
send a notice, the framework public body may by telephone give to that framework
service provider the information necessary to complete Part A of the order form.
The framework service provider receiving the order form shall inform the framework
public body as soon as possible if they are unable to supply the services set out in the
order form.
The framework service provider receiving the order form shall, if they are able to
supply the services set out in the order form, complete Part B of the order form and
sent it by notice sent by fax or electronic mail to the framework public body. In the
case of orders made by telephone, the framework service provider shall, if they are
able to supply the goods set out in the order form, by telephone give to the
framework public body the information necessary to complete Part B of the order
form.
If:
(a) the framework service provider receiving the order form informs the framework
public body that they are unable to supply the goods set out in the order form; or
(b) the framework public body does not receive the information necessary to
complete Part B of the order form within 3 working hours the framework public
body may repeat the above ordering procedures with the service provider listed
next down the order of preference.
Where a call-off contract is entered into by telephone for reasons of urgency, the
framework public body shall as soon as practicable complete Part A of the order form
and send it by Notice to the Service Provider. The service provider shall as soon as
practicable complete Part B of the order form and send it by notice to the framework
Public Body.
The direct buy option shall be subject to the framework terms and conditions.
Order form 2 (see Annex B for copy) – Mini Competition
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The following rules apply where framework public body’s wishes to hold a competition
between the framework service providers.
All call-off contracts awarded by a framework public body to a framework service
provider under the terms of this framework. Call-off contracts awarded by minicompetition must be for multiple deliveries. Framework public body’s should note that a
short contract for the delivery of wood-fuel may not justify the costs of competing for the
framework service providers.
Service providers should be given a minimum of two weeks to respond to requests
for quotations based on the complexity of the requirement and, on request, must be
given access to delivery points in order to assess access restrictions.
The percentage weightings for the evaluation criteria at the mini-competition stage are
set by the framework public body. Failure to meet the required wood-fuel specification
shall result in automatic exclusion from the mini-competition. Evaluation criteria shall
be the following:
Technical and quality (W per cent)*
- Ability to meet required delivery times X per cent**
- Ability to meet required delivery mechanism (e.g. blown delivery) Y per cent**
Price (Z per cent)*
- Total cost for delivered fuel during the lifetime of the call-off contract Z per cent
*The sum total of W plus Z must equal 100
**The sum total of X plus Y must equal W
The client shall complete Part A of the order form and send it, along with other relevant
information by notice to all service providers.
The framework public body shall ensure that the date and time for the receipt of
responses from the framework service providers takes into account factors such as the
complexity of the subject matter of the call-off contract and the time needed to send in
responses.
Each framework service provider that wishes to supply the services shall complete Part
B of the order form and send it by notice to the framework public body on or before the
last date for the receipt of responses.
On or after the last date for the receipt of responses, the framework public body shall
evaluate all responses submitted by the framework service providers and, by
application of the award criteria and the weightings specified in the order form, select a
single service provider to supply the goods.
Subject to the framework public body notifying the successful service provider that their
response has been accepted, the service contract shall be formed on the
commencement date set out in the order form. The framework public body shall give
notice of the name of the successful service provider to all other service providers in
respect of whom a response was received.
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The framework public body shall at all times treat service providers equally and without
discrimination and act in a transparent and proportionate manner.
The call-off contracts shall be subject to the framework terms and conditions.
5.
Price
The framework provides for a price per tonne, price per delivery unload, price per
delivery mileage and sundry charges. These are upper rates applicable to direct-buy
(emergency) purchases. Suppliers may reduce these rates in mini-competitions but
may not increase them.
During subsequent years, the price may be varied subject to suitable indexation. This
guide will be updated annually to reflect any changes to the framework prices.
Prices can be obtained by accessing the following link on SharePoint.
6.
Hints and Tips
The framework service providers will require certain information to enable them to price
for your requirement. Listed below are a few hints and tips on what you should consider
providing:
o Call the framework service providers in advance of issuing a minicompetition so they will know to look out for your email or notification by
your chosen method.
o When issuing a mini-competition ensure that you reference that this is in
accordance with the Biomass Wood Fuel Pellet Supply Framework
Reference Number SP13-01.
o If you have a new large requirement, give plenty of notice to the
framework service providers so that they have adequate time to source
the supply.
o If possible, provide site maps with details of areas of restricted access for
lorries.
o If possible provide previous load profiles of pellets deliveries. In the case
of new installs, provide oil or gas used per month. If there are load
sensors or remote access to meters for usage data, provide these.
o Provide details of the individual boilers onsite and the silo size’s supplying
them.
o If a site visit is required, please allow a couple of weeks to schedule this,
particularly as things get busier in the Autumn and Winter.
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7.
Frequently Asked Questions
1.
What is the framework agreement start date and what is the duration?
The framework commenced on the 1 September 2013. The duration of the
framework is three years, with the option to extend for a further 12 months.
Call-off contracts can be longer.
2.
Which Scottish public sectors bodies can use the framework?
o
o
o
o
o
o
o
o
Central government
Fire
Health
Local authorities
Police
Universities and colleges
Third Sector
Other public bodies
It is the responsibility of any buying organisation wishing to use the framework
agreement to satisfy itself that it is eligible to do so. Entitlement can be established
from the terms of the OJEU advert (OJEU reference number: 2013/S 069-114689).
Sections I.4, II.1.5 and VI.3 of the advert refer; copy embedded below) and guidance
on this can be found in Annex A of Scottish Government Guidance on Framework
Agreements. If there is any doubt, legal advice should be sought.
3.
Are the framework terms and conditions subject to Scots Law?
Yes.
4.
What are the contract management provisions?
The framework will be managed overall by Scottish Procurement, who will be
responsible for regular framework service provider review meetings covering
escalated issues, KPIs, benchmarking and innovation. Throughout the
framework period and following framework expiry, public bodies will be required
to manage the day-to-day operational aspects of their contract with the
framework service provider.
5.
Will management information be provided by the framework service providers
as part of the framework?
Yes, management information will be provided by the framework service provider
throughout the lifetime of the agreement. Management information will be
provided to both the public body and Scottish Procurement on a quarterly basis
or as specified.
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6.
How long can the call-off contract be?
Call-off contracts under the framework are not limited to the framework period.
Typically a call-off contract can be up to 5 years. The call-off contact period will
be determined at mini-competition.
7.
How long is pricing held for?
Framework pricing is fixed through the initial 1 year duration. Pricing will be
reviewed 12 months from the commencement date.
8.
Do I need to run a mini competition or can I do a direct award?
Public bodies can do a direct award or run a mini competition.
9.
Do I need to issue a mini competition to all the framework service providers?
Yes.
8.
Additional recommended reading
Scottish Government : “Public Sector Procurement in Scotland” – website for
information on public procurement in Scotland including, information for buyers and
policy and legislation.
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Annex A
Order form
Order form 1 – Direct buying
Scottish Procurement – framework agreement for biomass wood fuel
NOTE: Wood-pellets other than those set out in the pricing schedule MUST be ordered using
order form 2 for mini competitions. Framework public bodies and service providers may agree to
simplify this order form
Part A
Framework
agreement
Reference Number
Framework public
body
Service provider
Framework agreement for biomass wood fuel SP13-01
Framework public
body contact
name and address
for notices
Name:
Address:
Tel:
Fax:
Email:
Invoice Address
(if different)
Order number
To be quoted on all correspondence relating to this order form:
Order date
Requirements
Commencement date:
Quantity of Wood Pellets required (as defined in the Wood Pellet Specification), together with
delivery method (Blown, FIBC or 66 x 15kg bags on a pallet):
Delivery date(s) and time(s) and any particular delivery requirements:
Premises for delivery – include details of hopper / delivery mechanisms:
Completion date:
Security requirements (if the delivery driver will be accessing sensitive sites like primary schools or
sheltered housing, state any security requirements here):
Invoicing requirements:
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For and on behalf of the client:
Name and title
Signature
Date
Part B
Service providers
contact and
address for
notices
Name:
Address:
Tel:
Fax:
Email:
Service provider’s response
For and on behalf of the service provider:
Name and title
Signature
Date
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Annex B
Order form 2 – Mini competitions
Scottish Procurement – framework agreement for biomass wood fuel
The framework public body may amend this form.
Part A
Framework agreement for biomass wood fuel SP13-01
Framework public
body
Framework public
body contact
name and address
for notices
Name:
Address:
Tel:
Fax:
Email:
Invoice address (if
different)
Single point of
contact
Order number
To be quoted on all correspondence relating to this Order form:
Mini-competition
release date
Last date and time
for receipt of
responses
Requirements
Commencement date:
Requirement for goods and/or services:
[Buyers should provide as much detail here as they can. For example, include details of pellet
hopper (if you have one), access to delivery site, demand profile over a 1 year period, any
restrictions to delivery times (e.g. not at a school when children are present etc.)[
Premises for delivery:
[buyers should list all relevant sites]
Commencement date:
Potential for pre-award site survey:
[service providers will probably require site access – explain how this can be arranged]
Key Performance Indicators:
[buyer to define this may be as simple as 95% on-time delivery]
Value-add propositions (e.g. Ash removal, remote hopper content sensing, discounts for early
payment etc)
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Other relevant information
Completion date:
Award criteria weightings:
[see schedule 4 of the entire agreement for the framework agreement for wood pellets]
Whether an electronic auction will be used and, if so, the information required by regulation 21 of
the Public Contracts (Scotland) Regulations 2012:
Invoicing frequency:
For and on behalf of the framework public body:
Name and title
Signature
Date
Part B
Service Provider
Service providers
contact name and
address for
notices
Name:
Address:
Tel:
Fax:
Email:
Contractor’s response
Goods and/or services offered:
[service provider to detail all relevant elements of their offer (e.g. delivery frequency, volumes,
dates and times and anything else requested by the framework public body]
Price:
Sub-contractors:
For and on behalf of the service provider:
Name and title
Signature
Date
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