Firmus Energy Construction and Maintenance Works and Services Contract

Description

firmus Energy (Distribution) Limited (firmus) is conducting a preliminary market engagement exercise, prior to commencing a competitive tender process to identify a successful bidder to undertake a contract for construction, maintenance, emergency response and siteworks activities to build and extend the existing gas network for its gas distribution business. firmus is seeking the views of interested parties that may wish to participate in the forthcoming tender process, in relation to certain aspects of the project. The purpose of this periodic indicative notice and associated Request for Information (RFI) (available on request from RFI@firmusenergy.co.uk)is to invite interested parties to express and register their interest in the forthcoming opportunity and provide information to assist with firmus' consideration of the options available and preparation of the tender process. Lot 1: firmus will shortly be undertaking a competitive tender process to identify a successful bidder to undertake a contract for construction, maintenance, emergency response and siteworks activities to build and extend the existing gas network for its gas distribution business (as detailed further below (works)). It is currently anticipated that: - any contract awarded will have a potential 5 year duration (comprising an initial contract period of 3 years, with the ability for firmus to renew the contract at its discretion and subject to satisfactory performance by the successful party in accordance with the terms of the contract, for two subsequent 1 year periods). - all works required will be awarded to a single contractor to complete in accordance with the terms of the contract. firmus shall however appoint a second "reserve" contractor who may, at firmus' discretion, be appointed to undertake the entirety of the works in the event that the successful contractor is unable or unwilling to undertake the works for any reason during the term of the contract. - estimated annual contract value will be circa £16-17million (total potential contract value of £85million over the full potential 5 year contract period). - any contract awarded will require the following: gas distribution network construction services; gas distribution network maintenance services; emergency response construction and maintenance services; sitework services including meter replacement; and material purchasing, logistics and administration of all engineering materials necessary for gas network construction and maintenance services. The successful bidder(s) will be required to provide the following: - retention amount of up to 15% of the amount due per month until a maximum amount of £800,000 is accumulated into a retention fund; and key performance indicators (KPIs) with financial reward for exceeding KPI target and financial penalty should the successful bidder(s) fail to meet the KPI target. Interim instalments of the price will be payable monthly, with each interim instalment consisting of the value according to the pricing document of the part(s) of the work properly executed less: previous payments, deduction and retention where appropriate. The competitive tender process will be conducted on the basis of commercial (50%) and quality (50%) assessment, with quality being evaluated on the basis of safety, technical and environmental aspects.