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Construction Contract Leads

Section I: Contracting authority

I.1) Name and addresses

Portsmouth City Council

Civic Offices, Guildhall Square

PORTSMOUTH

PO1 2AL

Contact

Procurement Service

Email

procurement [at] portsmouthcc.gov.uk

Telephone

+44 2392688235

Country

United Kingdom

NUTS code

UKJ31 - Portsmouth

Justification for not providing organisation identifier

Not on any register

Internet address(es)

Main address

Buyer's address

I.3) Communication

The procurement documents are available for unrestricted and full direct access, free of charge, at

Additional information can be obtained from the above-mentioned address

Tenders or requests to participate must be submitted electronically via

Electronic communication requires the use of tools and devices that are not generally available. Unrestricted and full direct access to these tools and devices is possible, free of charge, at

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

Shore Power HV Operations Management - Portsmouth International Por

Reference number

P00005024

II.1.2) Main CPV code

• 65320000 - Operation of electrical installations

II.1.3) Type of contract

Services

II.1.4) Short description

Portsmouth City Council ('the Council') is inviting tenders from suitably qualified and experienced operators for the management of day-to-day operations of the shore power system currently under installation at Portsmouth International Port ('PIP'). The system is targeted to enter operation on 1st April 2025 following testing and commissioning in early 2025.

CONTRACT TERM & OPTIONS

The initial contract term will be for 3 years from 1st April 2025 plus approx. 3 months for the initial mobilisation & training period commencing following award in January 2025. The contract may be extended by a further 2 years to a maximum total term of 5 years in increments to be agreed, subject to the agreement and performance of both parties.

DEMAND & PAYMENT MODEL

Demand for connections to the shore power system will be driven by take up or otherwise of the ferry and cruise operators who utilise the Port. Payment to the successful operator will be on the basis of a monthly draw down from their tendered schedule of rates against actual demand.

Tenderers have the option of putting forward discounting models that would be applied to their rates based upon a yearly minimum number of connections guarantee from the Port whereby the Port would underwrite against the guarantee to protect the operator from losses in the event that the minimum number of connections is not achieved.

Although the Port estimates that 650 connections could take place over a year the highest level of minimum guarantee discount that can be proposed by tenderers is capped at 500 connections per year in order to minimise the Port's exposure to underwriting losses.

Tenderers should note that it will be at the sole discretion of the Port on whether it takes up a minimum guarantee discount option at commencement or in the subsequent years of the contract, the level of minimum guarantee that it will commit to and whether to continue with a minimum guarantee model for subsequent years of the contract.

CONTRACT VALUE

As the value of the contract will be demand, led a fixed value estimate for the contract cannot be provided. However, an upper value estimate of £850,000 (excluding VAT) per annum can be applied based upon high take up by both ferry and cruise operators.

Rates may be increased on a yearly basis with increases capped at the relevant CPI (Consumer Price Index) inflation rate. Applying a 2% CPI estimate based upon current projections an upper value estimate of approx. £4.4M (excluding VAT) can be applied to the maximum contract term duration of 5 years.

PROCUREMENT PROCEDURE & ADMINISTRATION

The Council will undertake the procurement process in accordance with the regulations that apply to the 'Open Procedure' as set out within the Public Contracts Regulations (2015).

The Council will administrate the procurement process using its e-sourcing system In-tend which can be accessed free of charge via the following web link:

PROCUREMENT TIMETABLE

The procurement timetable is set out below. Tenderers will be notified of any changes to the procurement programme via the council's e-sourcing solution In-tend.

• Contract notice published on Intend &Contracts Finder - 5th October 2024

• Procurement documents available on In-tend - 5th October 2024

• Site tour and presentation on the system - 17th October 2024

• Deadline for requests for clarification - 24th October 2024 17:00

• Tender return deadline - 4th November 2024 14:00

• Award decision notified to tenderers - 9th December 2024

• Standstill period ends - 19th December 2024 23:59

• Contract award - 20th December 2024

SITE TOUR

Attendance at the site tour and system presentation on Thursday 17th October is a condition of tendering unless tenderers can evidence that they have already undertaken a tour of the site through participation in the prior soft market testing process.

II.1.5) Estimated total value

Value excluding VAT: £4,400,000

II.1.6) Information about lots

This contract is divided into lots: No

II.2) Description

II.2.2) Additional CPV code(s)

• 51112000 - Installation services of electricity distribution and control equipment
• 63721200 - Port operation services
• 63721400 - Ship refuelling services
• 63723000 - Berthing services
• 63726610 - Ship-launching services
• 65310000 - Electricity distribution
• 65320000 - Operation of electrical installations
• 71311100 - Civil engineering support services
• 71311300 - Infrastructure works consultancy services
• 71314100 - Electrical services
• 71317210 - Health and safety consultancy services
• 71336000 - Engineering support services
• 71356100 - Technical control services
• 71356200 - Technical assistance services
• 71356300 - Technical support services
• 71510000 - Site-investigation services
• 71620000 - Analysis services
• 71631100 - Machinery-inspection services
• 71631400 - Technical inspection services of engineering structures
• 71631420 - Maritime safety inspection services
• 71632200 - Non-destructive testing services
• 80511000 - Staff training services
• 80531000 - Industrial and technical training services
• 80550000 - Safety training services
• 98362100 - Marine-base support services

II.2.3) Place of performance

NUTS codes

• UKJ31 - Portsmouth

Main site or place of performance

Portsmouth International Port

George Byng Way

Portsmouth

PO2 8SP

II.2.4) Description of the procurement

OPERATIONAL REQUIREMENTS SUMMARY

The Council requires an operator to manage the operations of the shore power connection across the three busiest berths at the port. At present, PIP has several vessels calling daily throughout the year, which is usually between the hours of 05:45-23:59.

The Council's operator requirements are set out below in summary, however tenderers must refer to the detailed information set out within the 'Specification' document included within the tender pack accessible via IN-tend.

In the event of any discrepancies the detailed information set out within the Specification, other technical documents, contractual terms, etc. take precedent over the summarised information included below.

The appointed HV contractor will be required to have availability 365 days of the year, with a possible estimated 650 connections during the year, which may increase or decrease dependent on system take up by cruise and ferry customers. Requirements will be demand led and no guarantees can be provided in respect of minimum or maximum numbers of annual connections.

The successful operator will be, in summary, required to undertake the following services:

• Early engagement with the Port and ABB to have an overview of the testing and commissioning of the shore power solution

• Undertake the following under a Control, Operations, Maintenance Agreement ('COMA') agreement, as a minimum.

o Commissioning of the vessels for the use of the shore power.

o Set up connections, carry out the connection and disconnection of vessels to the shore power.

o Management of the COMA agreement for the system.

o Identification and reporting of system faults.

o Operational and system audits.

• Provision of HV awareness training to relevant Port staff

The contractor will need to remain on site at all times whenever vessels are connected to the shore power system.

The Council will require the contractor to be able to attend site on a dynamic basis as berthing programmes can be subject to change at short notice due to weather conditions and other factors.

PARTNERSHIP WORKING

The Council wishes to appoint an operator who can work in partnership during the duration of the contract to review the operations and commercial elements to allow continuous improvement in the service levels to PIP's customers, operational efficiencies, and financial savings.

As set out within the Specification, the operator will be required to work in collaboration with PIP to:

• Overcome any identified contract challenges and complications to ensure the operations and commercial viability of the contract remains.

• Ensure the contract remains financially competitive to encourage PIP's customers to use to the shore power system.

• Development of processes and documentation for the whole shore power process, including the commissioning of vessels, connection and disconnection procedures, and fault logging.

• Support the fluctuations in demand to ensure customer requirements of shore power are met in a timely manner to customers' expectations.

• Proactively review and suggest improvements to PIP on the operations of shore power to ensure efficient procedures are undertaken on the connection and disconnection of the system to a vessel.

• Work with system installer to understand the system in preparation of the shore power system demonstration period go live.

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: £4,450,000

II.2.7) Duration of the contract, framework agreement or dynamic purchasing system

Duration in months

36

This contract is subject to renewal

No

II.2.10) Information about variants

Variants will be accepted: No

II.2.11) Information about options

Options: Yes

Description of options

CONTRACT TERM EXTENSION OPTIONS

The initial contract term will be for 3 years with possibility of extending the term by a further 2 years to a maximum total term of 5 years in increments to be agreed, subject to the agreement and performance of both parties.

MINIMUM GUARANTEE DISCOUNTING OPTIONS

Tenderers have the option of putting forward discounting models that would be applied to their rates based upon a yearly minimum number of connections guarantee from the Port whereby the Port would underwrite against the guarantee to protect the operator from losses in the event that the minimum number of connections is not achieved.

Tenderers may put forward discount %s that would be applied to connection and disconnection rates based upon 100, 250 and 500 minimum per annum connection guarantees.

Although the Port estimates that 650 connections could take place over a year the highest level of minimum guarantee discount that can be proposed by tenderers is capped at 500 connections per year in order to minimise the Port's exposure to underwriting losses.

Tenderers should note that it will be at the sole discretion of the Port on whether it takes up a minimum guarantee discount option at commencement or in the subsequent years of the contract, the level of minimum guarantee that it will commit to and whether to continue with a minimum guarantee model for subsequent years of the contract.

II.2.14) Additional information

PORTSMOUTH INTERNATIONAL PORT (PIP)

PIP is a major UK port, responsible for handling millions of customers and vital cargo across the globe. With easy access from the motorway and major shipping lanes, PIP is ideally placed for ferries, cruise, and freight. The Port is wholly owned by the Council and is the UK's largest municipal port.

Further information about the port including an overview of the facilities, current ferry & cruise schedules, cargo & logistics, etc. can be freely accessed on the PIP's website via the weblink below:

SEA CHANGE PROJECT SUMMARY OVERVIEW

PIP has bold ambitions to reach net zero by 2030 and become zero emission by 2050. This includes building the ground breaking Sea Change shore power project. To support PIP's environmental ambitions, the Council has secured £19.8M of UK government 'Zero Emissions Vessels & Infrastructure' (ZEVI) funding for the delivery of a shoreside electrical power solution. Once installed, the system will service the Port's three busiest berths. Delivery of this ground-breaking decarbonisation project - titled 'Sea Change' - will allow visiting ferries and cruise ships to 'plug in' when berthed at the Port instead of running engines to power on-board systems.

PIP is working in partnership with University of Portsmouth, MSE International, B4T, IOTICS and Swanbarton to deliver the project. It is estimated that the project could potentially reduce annual carbon dioxide emissions from vessels calling at the port by an estimated 20,000 metric tons from 2027. This will significantly improve air quality in the harbour area and contribute significantly towards the Council's wider target of reaching net carbon neutral by 2030.

Brittany Ferries is introducing two new LNG-electric hybrid ferries from 2025, which run on a combination of cleaner liquefied natural gas (LNG) and battery power. With shore power available at PIP, they will be able to charge their batteries and run on battery to power when manoeuvring through Portsmouth harbour, improving air quality, and supporting the industry-wide shift to zero-emission shipping.

In accordance with the funding requirements, the shoreside power system is required to be operational by the end of March 2025 and subsequently remain in operation for a minimum 3-year demonstration period. Further information on the Sea Change project can be found on the Port's website via the weblink below:

SEA CHANGE PROJECT PROGRAMME STATUS

The Council has already entered a contract with ABB Ltd via a Public Contracts Regulations (2015) compliant competitive procurement for the supply, installation, cabling, commission, servicing, and maintenance of the shore power connection solution which comprises of:

• 16-MVA ACS6080 drive with shunt filter

• MV switchgear

• Power-factor compensation

• Transformers

• E-houses

• Cable management systems

• Automation

Whilst ABB have been secured to deliver servicing and maintenance of the shore power solution on a 3-year NEC4 Term Service Contract, this agreement does not cover the delivery of day-to-day operational management requirements at the PIP which is the subject of this procurement process.

The Council has also secured Balfour Beatty via the SCAPE National Civil Engineering Framework to undertake the role of Principal Contractor under CDM regulations to manage and co-ordinate the on site works of ABB and their sub-contractors. Balfour Beatty will also deliver the required civil engineering infrastructure works required to enable the effective installation and operation of the shore power solution at the Port. This package of works includes for:

• Service trenches

• Pit and duct network

• Column and slab foundations

• Installation of bollard, barriers and handrailing

Under the current programme it is envisaged that the shore power solution will be installed by the 1st February to enable testing and commissioning to take place ahead of go live on 1st April 2025.

Section III. Legal, economic, financial and technical information

III.1) Conditions for participation

III.1.2) Economic and financial standing

Selection criteria as stated in the procurement documents

III.1.3) Technical and professional ability

Selection criteria as stated in the procurement documents

Section IV. Procedure

IV.1) Description

IV.1.1) Type of procedure

Open procedure

IV.1.8) Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes

IV.2) Administrative information

IV.2.1) Previous publication concerning this procedure

Notice number: 2024/S 000-021197

IV.2.2) Time limit for receipt of tenders or requests to participate

Date

4 November 2024

Local time

2:00pm

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

Duration in months: 4 (from the date stated for receipt of tender)

IV.2.7) Conditions for opening of tenders

Date

4 November 2024

Local time

3:00pm

Place

Tender returns must be submitted via the council's e-sourcing solution In-tend. Returns will be locked and may not be opened until the tender return deadline has passed.

Information about authorised persons and opening procedure

Tender returns must be submitted via the council's e-sourcing solution In-tend. Returns will be locked and may not be opened until the tender return deadline has passed.

Section VI. Complementary information

VI.1) Information about recurrence

This is a recurrent procurement: Yes

Estimated timing for further notices to be published: Subject to on-going viability of the Shore Power system the Council would re-tender the contract in time for expiry of the contract let via this procurement process. The timing of any further notices would be September / October in either year 2027, 2028 or 2029 dependent upon the take up or not of extension options.

VI.3) Additional information

SOFT MARKET TESTING

Prior to issuing this procurement process the Council undertook a soft market testing process instigated via issue of a Prior Information Notice on the government's Find a Tender Service portal. A copy of the notice - 2024/S 000-021197 - and supporting SMT issued via In-tend is included within the tender documents accessible via In-tend.

As set out within the notice and brief the purpose of the soft market testing process was to gather information from the market to ensure that the design of the subsequent formal procurement process is market optimised, reducing bidding costs for all parties and maximising delivery of best value.

A summary of the information gathered via the soft market testing redacted to protect commercial confidence of the participating operators is included within the tender documents. A further report which summarises how the findings have been considered and as appropriate adopted into the commissioning, sourcing and contracting strategy is also included within the tender documents.

VI.4) Procedures for review

VI.4.1) Review body

The High Court of Justice

Strand

London

WC2A 2LL

Country

United Kingdom

Internet address