SGN: Construction, maintenance and replacement of gas distribution mains and services – Southern Gas Networks

UK-Horley: Gas distribution ancillary work.
Section I: Contracting Authority
      I.1) Name and addresses
             Southern Gas Networks plc
             St Lawrence House, Station Approach, Horley, RH6 9HJ, United Kingdom
             Tel. +44 7778373138, Email: cameron.kerr@sse.com
             Contact: Cameron Kerr
             Main Address: www.sgn.co.uk/about-us/reports-and-publications/tenders
             NUTS Code: UKJ
      I.2) Joint procurement
      The contract involves joint procurement: No.
      In the case of joint procurement involving different countries, state applicable national procurement law: Not provided       
      The contract is awarded by a central purchasing body: No.
      I.3) Communication
      The procurement documents are available for unrestricted and full direct access, free of charge, at: https://www.delta-esourcing.com/tenders/UK-UK-Horley:-Gas-distribution-ancillary-work./Y5N266DGF7
      Additional information can be obtained from: the abovementioned address
      Tenders or requests to participate must be sent to the abovementioned address       
      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: Not provided

      I.6) Main activity:
            Production, transport and distribution of gas and heat

Section II: Object
II.1) Scope of the procurement
      II.1.1) Title: Construction, maintenance and replacement of gas distribution mains and services – Southern Gas Networks       
      Reference Number: 10015
      II.1.2) Main CPV Code:
      45231223 - Gas distribution ancillary work.

      II.1.3) Type of contract: WORKS
      II.1.4) Short description: Southern Gas Networks plc (“SGN”) are a gas distribution utility regulated by the Office of Gas and Electricity Markets (“Ofgem”). SGN is seeking experienced Suppliers to assist the delivery of a range of regulatory outputs and related works predominantly over the period 2021 to 2026 with the option for a further 2 extension periods of up to 12 months each. The primary works activity will be the policy abandonment and replacement of underground cast iron gas mains and steel service pipes. The majority of the mains to be abandoned and renewed will be in the diameter range 3” to 8” with a significantly smaller quantity in the diameter range 9” – 12”. The mains are located in predominantly urban locations including London (South of the River Thames), the South and South East of England and operate at pressures up to 2 bar.       
      II.1.5) Estimated total value:
      Value excluding VAT: 732,000,000       
      Currency: GBP
      II.1.6) Information about lots:
      This contract is divided into lots: Yes       
      Tenders may be submitted for: All lots
      Maximum number of lots that may be awarded to one tenderer: Not provided
      The contracting authority reserves the right to award contracts combining the following lots or groups of lots: Further information can be found in the tenderbox attachment PQQ-GD2 Southern .This Call for Competition also advertises a Dynamic Purchasing System. The DPS will advertise all future workload as per II.1.4. which becomes available or may include work awarded under the framework agreement where the main suppliers are unable to fulfil. Register at www.delta-esourcing.com, using code TS9J6HWD56 .

II.2) Description
   
II.2) Description Lot No. 1
      
      II.2.1) Title: South - Oxfordshire, Berkshire, Surrey, Hampshire, Dorset and West Sussex       
      Lot No: 1       
      II.2.2) Additional CPV codes:
      44161100 - Gas pipelines.
      44161110 - Gas-distribution network.
      44161600 - Low-pressure pipeline.
      44161000 - Pipelines.
      
      II.2.3) Place of performance:
      UKJ28 West Sussex (North East)
      UKJ27 West Sussex (South West)
      UKJ37 North Hampshire
      UKJ35 South Hampshire
      UKK22 Dorset CC
      UKJ36 Central Hampshire
      UKJ11 Berkshire
      UKJ12 Milton Keynes
      UKJ31 Portsmouth
      UKJ13 Buckinghamshire CC
      UKJ32 Southampton
      UKJ14 Oxfordshire
      UKJ1 Berkshire, Buckinghamshire and Oxfordshire
      
      II.2.4) Description of procurement: SGN are seeking experienced Suppliers to assist SGN with the delivery of a range of Ofgem regulatory outputs predominantly over the GD2 period (2021 to 2026). The primary works activity will be the policy abandonment and replacement, with polyethylene pipework, of underground cast iron gas mains and steel service pipes across the South and South East of England. The majority of the cast-iron mains to be abandoned and renewed will be in the diameter range 3” to 8” (referred to as “Tier 1 Mains”) with a significantly smaller quantity in the diameter range 9” – 12” (“Tier 2 Mains”). The mains are located in predominantly urban locations and operate at pressures up to 2 bar. Most replacement mains will be constructed using live or dead mains insertion techniques in order to reduce reinstatement costs and increase productivity. The works will also include pricing options for open cut mainlaying.

In addition to the primary works activities detailed above, the Framework Agreement will include the following secondary works activities which typically account for 5% - 15% of the total annual workload:
•Replacement of steel mains and services due to their condition (Non-Policy Mains replacement)
•Diversion of mains and services at the request of a third party up to 355mm diameter
•Construction of new reinforcement mains to increase the capacity of the network up to 355mm diameter

Suppliers will be required to provide experienced and competent resources to safely deliver the primary works annual policy mains replacement works target and an element of the secondary works. The Supplier will as a minimum be required to supply management, supervision resource management, traffic management, main laying, service laying reinstatement and meter works.

SGN will undertake or provide the role of the CDM Principal Designer and is seeking suppliers who will undertake and deliver the roles and responsibilities of a CDM Principal Contractor or CDM Contractor and provide a fully managed service to SGN, including but not limited to preconstruction surveys, works scheduling, material ordering, customer liaison, stakeholder engagement, supervision and management of all on site resources, SHE management and auditing. As such, SGN will be seeking safety conscious suppliers with experience and competence in mains and service replacement works in a street work environment.
      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: 306,000,000       
      Currency: GBP       
      II.2.7) Duration of the contract, framework agreement or dynamic purchasing system:
      Duration in months: 84       
      This contract is subject to renewal: Yes       
      Description of renewals: SGN will additionally create a separate Dynamic Purchasing System to cover future workload which becomes available. This may include reallocation of work awarded under the new framework agreement where the main supplier(s) is unable to fulfil as further outlined in Section II.1.6 above.
      II.2.9) Information about the limits on the number of candidates to be invited:
             Envisaged minimum number: 1
             
      Objective criteria for choosing the limited number of cadidates: There will be no limit on the number of candidates who achieve the criteria set out in the PQQ.
      II.2.10) Information about variants:
      Variants will be accepted: Yes
      II.2.11) Information about options:
      Options:       No             
      Description of options: Not provided
      II.2.12) Information about electronic catalogues:
      Tenders must be presented in the form of electronic catalogues or include an electronic catalogue: No
      II.2.13) Information about European Union funds:
      The procurement is related to a project and/or programme financed by European Union funds: No       
      Identification of the project: Not provided             
      II.2.14) Additional information: SGN reserves the right to accept variants at the ITT stage provided a compliant Tender has been submitted. Further information in relation to any variants and how variants will be evaluated will be set out in the ITT. The award criteria will be Quality and Technical 30%, Price 70% with further specific details provided within the ITT.       
   
   
II.2) Description Lot No. 2
      
      II.2.1) Title: London       
      Lot No: 2       
      II.2.2) Additional CPV codes:
      44161110 - Gas-distribution network.
      44161100 - Gas pipelines.
      44161600 - Low-pressure pipeline.
      44161000 - Pipelines.
      
      II.2.3) Place of performance:
      UKI6 Outer London – South
      UKI4 Inner London – East
      UKI3 Inner London – West
      
      II.2.4) Description of procurement: SGN are seeking experienced Suppliers to assist SGN with the delivery of a range of Ofgem regulatory outputs predominantly over the GD2 period (2021 to 2026). The primary works activity will be the policy abandonment and replacement, with polyethylene pipework, of underground cast iron gas mains and steel service pipes across the South and South East of England. The majority of the cast-iron mains to be abandoned and renewed will be in the diameter range 3” to 8” (referred to as “Tier 1 Mains”) with a significantly smaller quantity in the diameter range 9” – 12” (“Tier 2 Mains”). The mains are located in predominantly urban locations and operate at pressures up to 2 bar. Most replacement mains will be constructed using live or dead mains insertion techniques in order to reduce reinstatement costs and increase productivity. The works will also include pricing options for open cut mainlaying.

In addition to the primary works activities detailed above, the Framework Agreement will include the following secondary works activities which typically account for 5% - 15% of the total annual workload:
•Replacement of steel mains and services due to their condition (Non-Policy Mains replacement)
•Diversion of mains and services at the request of a third party up to 355mm diameter
•Construction of new reinforcement mains to increase the capacity of the network up to 355mm diameter

Suppliers will be required to provide experienced and competent resources to safely deliver the primary works annual policy mains replacement works target and an element of the secondary works. The Supplier will as minimum be required to supply management, supervision resource management, traffic management, main laying, service laying reinstatement and meter works.

SGN will undertake or provide the role of the CDM Principal Designer and is seeking suppliers who will undertake and deliver the roles and responsibilities of a CDM Principal Contractor or CDM Contractor and provide a fully managed service to SGN, including but not limited to preconstruction surveys, works scheduling, material ordering, customer liaison, stakeholder engagement, supervision and management of all on site resources, SHE management and auditing. As such, SGN will be seeking safety conscious suppliers with experience and competence in mains and service replacement works in a street work environment.
      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: 193,000,000       
      Currency: GBP       
      II.2.7) Duration of the contract, framework agreement or dynamic purchasing system:
      Duration in months: 84       
      This contract is subject to renewal: Yes       
      Description of renewals: SGN will additionally create a separate Dynamic Purchasing System to cover future workload which becomes available. This may include reallocation of work awarded under the new framework agreement where the main supplier(s) is unable to fulfil as further outlined in Section II.1.6 above.
      II.2.9) Information about the limits on the number of candidates to be invited:
             Envisaged minimum number: 1
             
      Objective criteria for choosing the limited number of cadidates: There will be no limit on the number of candidates who achieve the criteria set out in the PQQ.
      II.2.10) Information about variants:
      Variants will be accepted: Yes
      II.2.11) Information about options:
      Options:       No             
      Description of options: Not provided
      II.2.12) Information about electronic catalogues:
      Tenders must be presented in the form of electronic catalogues or include an electronic catalogue: No
      II.2.13) Information about European Union funds:
      The procurement is related to a project and/or programme financed by European Union funds: No       
      Identification of the project: Not provided             
      II.2.14) Additional information: SGN reserves the right to accept variants at the ITT stage provided a compliant Tender has been submitted. Further information in relation to any variants and how variants will be evaluated will be set out in the ITT. The award criteria will be Quality and Technical 30%, Price 70% with further specific details provided within the ITT.       
   
   
II.2) Description Lot No. 3
      
      II.2.1) Title: Kent, South Downs, East Surrey       
      Lot No: 3       
      II.2.2) Additional CPV codes:
      44161110 - Gas-distribution network.
      44161100 - Gas pipelines.
      44161600 - Low-pressure pipeline.
      44161000 - Pipelines.
      
      II.2.3) Place of performance:
      UKJ26 East Surrey
      UKJ4 Kent
      UKJ46 West Kent
      UKJ21 Brighton and Hove
      UKJ44 East Kent
      UKJ45 Mid Kent
      UKJ43 Kent Thames Gateway
      UKJ22 East Sussex CC
      UKJ41 Medway
      
      II.2.4) Description of procurement: SGN are seeking experienced Suppliers to assist SGN with the delivery of a range of Ofgem regulatory outputs predominantly over the GD2 period (2021 to 2026). The primary works activity will be the policy abandonment and replacement, with polyethylene pipework, of underground cast iron gas mains and steel service pipes across the South and South East of England. The majority of the cast-iron mains to be abandoned and renewed will be in the diameter range 3” to 8” (referred to as “Tier 1 Mains”) with a significantly smaller quantity in the diameter range 9” – 12” (“Tier 2 Mains”). The mains are located in predominantly urban locations and operate at pressures up to 2 bar. Typically , around 90% of replacement mains will be constructed using live or dead mains insertion techniques in order to reduce reinstatement costs and increase productivity. The works will also include pricing options for open cut mainlaying.

In addition to the primary works activities detailed above, the Framework Agreement will include the following secondary works activities which typically account for 5% - 15% of the total annual workload:
•Replacement of steel mains and services due to their condition (Non-Policy Mains replacement)
•Diversion of mains and services at the request of a third party up to 355mm diameter
•Construction of new reinforcement mains to increase the capacity of the network up to 355mm diameter

Suppliers will be required to provide experienced and competent resources to safely deliver the primary works annual policy mains replacement works target and an element of the secondary works. The Supplier will as a minimum be required to supply management, supervision resource management, traffic management, main laying, service laying reinstatement and meter works.

SGN will undertake or provide the role of the CDM Principal Designer and is seeking suppliers who will undertake and deliver the roles and responsibilities of a CDM Principal Contractor or CDM Contractor and provide a fully managed service to SGN, including preconstruction surveys, works scheduling, material ordering, customer liaison, stakeholder engagement, supervision and management of all on site resources, SHE management and auditing. As such, SGN will be seeking safety conscious suppliers with experience and competence in mains and service replacement works in a street work environment
      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: 306,000,000       
      Currency: GBP       
      II.2.7) Duration of the contract, framework agreement or dynamic purchasing system:
      Duration in months: 84       
      This contract is subject to renewal: Yes       
      Description of renewals: SGN will additionally create a separate Dynamic Purchasing System to cover future workload which becomes available. This may include reallocation of work awarded under the new framework agreement where the main supplier(s) is unable to fulfil as further outlined in Section II.1.6 above.
      II.2.9) Information about the limits on the number of candidates to be invited:
             Envisaged minimum number: 1
             
      Objective criteria for choosing the limited number of cadidates: There will be no limit on the number of candidates who achieve the criteria set out in the PQQ.
      II.2.10) Information about variants:
      Variants will be accepted: Yes
      II.2.11) Information about options:
      Options:       No             
      Description of options: Not provided
      II.2.12) Information about electronic catalogues:
      Tenders must be presented in the form of electronic catalogues or include an electronic catalogue: No
      II.2.13) Information about European Union funds:
      The procurement is related to a project and/or programme financed by European Union funds: No       
      Identification of the project: Not provided             
      II.2.14) Additional information: SGN reserves the right to accept variants at the ITT stage provided a compliant Tender has been submitted. Further information in relation to any variants and how variants will be evaluated will be set out in the ITT. The award criteria will be Quality and Technical 30%, Price 70% with further specific details provided within the ITT.       
   


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
      List and brief description of conditions:          
      Achilles Verify B2 Audit achieved prior to either framework award or DPS call-off.    
      III.1.2) Economic and financial standing       
      List and brief description of selection criteria:       
      Not Provided    
      Minimum level(s) of standards possibly required (if applicable) :       
      For suppliers who will subcontract parts of the business that might be obtained by it under the proposed framework agreement. The supplier should provide a letter signed by a person of appropriate authority within the supplier organisation confirming that the supplier has or will have prior to the commencement of any subsequently awarded contract, arrangements in place to ensure that sub-contractors are competent and appropriately insured.

The supplier is to confirm that a search of the supplier against a third party financial assessment will not return a ‘Warning’ or ‘Caution’ returnable code or any neutral code (or equivalent), unless the supplier confirms that it can provide any other document which SGN considers appropriate to prove to SGN (acting within its permitted discretion under the applicable utilities procurement rules) that the supplier does / would not represent an unmanageable risk should it be appointed onto the proposed framework agreement.    
      III.1.3) Technical and professional ability    
      Selection criteria as stated in the procurement documents
      List and brief description of selection criteria:       
      Not Provided      
      Minimum level(s) of standards possibly required (if applicable) :          
      Not Provided   
      III.1.4) Objective rules and criteria for participation
            Suppliers are required to complete and submit the online PQQ and meet the minimum selection requirements. Those who meet the minimum requirements will be issued with an ITT. Suppliers who take part in the ITT but are not awarded a framework must register on the Dynamic Purchasing System for the option to compete for future requirements. New suppliers can access the DPS via the weblink. In both these instances, those meeting the minimum requirements will be included onto the Dynamic Purchasing System to compete for future works. Details for accessing the DPS can be found a VI.3.    
      III.1.5) Information about reserved contracts (if applicable)   
      The contract is reserved to sheltered workshops and economic operators aiming at the social and professional integration of disabled or disadvantaged persons: No       
      The execution of the contract is restricted to the framework of sheltered employment programmes: No    
      III.1.6) Deposits and guarantees required:
      SGN reserves the right to require guarantees, retentions, bonds, collateral warranties (potentially including the grant of step-in rights) and other forms of security as appropriate based on the financial strength of the supplier to be specified at ITT stage. Further details and requirements will be provided in the ITT.    
      III.1.7) Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:
      The main financing conditions, payment mechanism and performance standards will be described in the ITT, but it is expected that payment will be based on tendered rates as follows:

Payment will be made through the SGN Work Management System (via the Contractor Invoice Payment System) following issue and authorisation of fully completed electronic track sheets and associated job cards and details. A summary of the proposed payment process is provided in Annex A - Heads of Terms. Payment will be made no later than 14 days after receipt of the fully completed track sheets.   
      III.1.8) Legal form to be taken by the group of economic operators to whom the contract is to be awarded:
      SGN will accept expressions of interest and tenders from single entities or consortia. SGN does not require those consortia who intend to form a single legal entity to do so at the prequalification stage. SGN will consider contracting with a consortium, providing always that the participants in any joint venture are jointly and severally liable for all of the obligations of the supplier under the framework agreement.      
   III.2) Conditions related to the contract
         
      III.2.2) Contract performance conditions       
      The framework agreement will make provisions to include performance security requirements and indemnities, delivery criteria and targets, performance measurement (via Key Performance Indicators (KPIs)), incentives and penalties to ensure that the delivery achieves best value. Final specific details on the form of framework agreement and contracting approach will be provided in the ITT but a summary of the proposed approach to these key matters is provided in Annex A - Heads of Terms.          
      III.2.3) Information about staff responsible for the performance of the contract
      Obligation to indicate the names and professional qualifications of the staff assigned to performing the contract: Yes    
   
Section IV: Procedure
   IV.1) Description NEGOTIATED_WITH_COMPETITION
      IV.1.1) Type of procedure: Competitive procedure with negotiation   
   
   IV.1.3) Information about a framework agreement or a dynamic purchasing system    
         The procurement involves the establishment of a framework agreement    
         Framework agreement with several operators       
         Envisaged maximum number of participants to the framework agreement:
Not Provided           
         In the case of framework agreements justification for any duration exceeding 4 years: Not Provided    
   IV.1.4) Information about reduction of the number of solutions or tenders during negotiation or dialogue: Yes.
   
   IV.1.6) Information about electronic auction:
      An electronic auction will be used: No
      Additional information about electronic auction: Not provided
   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 in the OJ S: Not provided       
      IV.2.2) Time limit for receipt of tenders or requests to participate
       Date: 13/12/2019 Time: 12:00
      IV.2.3) Estimated date of dispatch of invitations to tender or to participate to selected candidates: 27/01/2020       
      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 month(s): 12
      
      

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 the provision for options to extend the Agreement, the Framework award will take place in 5 years.
   VI.2) Information about electronic workflows
   Electronic ordering will be used Yes       
   Electronic invoicing will be accepted Yes       
   Electronic payment will be used Yes       
   VI.3) Additional Information: The value of each lot are estimates only and SGN reserves the right to transfer or reallocate unspent funds between lots and other works captured by this notice and suppliers should consider the total value of the works and not just each lot.

Suppliers should note that the duration of the framework agreement and time limit for completion expressed in this contract notice may be subject to change in accordance with the terms of the PQQ, ITT and the framework agreement.

The framework agreement will make appropriate provisions to include SGN's requirements, including performance security requirements and indemnities, specific targets, Key Performance Indicators (KPIs), and appropriate incentives to ensure that the delivery achieves best value. Further details on the form of framework agreement and contracting approach will be provided in the ITT.

Suppliers should be aware that SGN reserves the right to do any, some or all of the following: — omit scope, vary the scope of the framework agreement, vary the scope of the lots or between lots and to abort the procurement of any lot and to aggregate the scope of that aborted lot into one or more of the other lots. Further information in relation to scope and value of the lots is included in the PQQ.

All economic operators must complete the PQQ strictly in accordance with the submission deadline for PQQ applications stated in the PQQ.

A response to this notice does not guarantee that a supplier will be invited to tender. The award process may be terminated or suspended at any time without cost or liability to SGN. SGN does not bind itself to enter into any contract arising out of the procedures envisaged by this notice. No contractual rights express or implied arise out of this notice or the procedures envisaged by it. Any contract let by SGN may provide that the scope or duration of the contract may be extended at SGN's discretion. SGN reserves the right to vary its requirements and the procedure relating to the conduct of the award process. SGN reserves the right to disqualify any economic operator who:

-Provides information or confirmations which later prove to be untrue or incorrect; does not supply the information required by this contract notice or by the PQQ a, or as otherwise required by SGN during the award process; or
-Fails by reference to Regulation 80 of the UK Utilities Contract Regulations 2016 any one or more of the criteria detailed in Regulation 57 of the UK Public Contracts Regulations 2015.

SGN reserves the right to require the submission of any additional, supplementary or clarification information as it may, in its absolute discretion, consider appropriate.

Suppliers shall be solely responsible for and liable for all costs associated with and arising out of or in connection with responding to this notice and any prequalification questionnaire and with submitting any tender, howsoever incurred.

Tenders and supporting documents must be priced in Pounds Sterling and all payments made under the contract will be in Pounds Sterling unless otherwise stated.

SGN embraces diversity and welcomes applications from all suitably skilled suppliers of all sizes who can meet the requirements, regardless of gender, ethnicity, sexual orientation, faith, disability or age of supplier workforce and/or ownership. SGN will actively promote sustainable procurement throughout its supply chain and welcomes applications from suppliers committed to the principles of reducing, reusing and recycling resources and to the practices of buying responsibly.

Suppliers should note The DPS will be open until 2026 ( with the option of 2 further extension periods of up to 12 months each ) You must register on the Delta system at https://www.delta-esourcing.com. Once registered select the ‘Response manager’ on the left hand side and then within the access code box enter the access code TS9J6HWD56 . This will then give you access to the DPS titled Construction, maintenance and replacement of gas distribution mains and services – Southern Gas Network You must then complete and submit the short online pre-PQQ.

The estimated value of all Lots over the contact period is £450,000,000 - £732,000,000.
For more information about this opportunity, please visit the Delta eSourcing portal at:
https://www.delta-esourcing.com/tenders/UK-UK-Horley:-Gas-distribution-ancillary-work./Y5N266DGF7

To respond to this opportunity, please click here:
https://www.delta-esourcing.com/respond/Y5N266DGF7
   VI.4) Procedures for review
   VI.4.1) Review body:
             TBC
       TBC, United Kingdom
   VI.4.2) Body responsible for mediation procedures:
Not provided
   VI.4.3) Review procedure
   Precise information on deadline(s) for review procedures:    
    SGN will incorporate a standstill period of a minimum of ten (10) calendar days at the point that information on the award of the framework agreement and the reasons for the decision is communicated to suppliers.    
   VI.4.4) Service from which information about the lodging of appeals may be obtained:
Not provided
   VI.5) Date Of Dispatch Of This Notice: 05/11/2019

Annex A