The Department for Business, Energy and Industrial Strategy (BEIS): Renewable Heat Incentive (RHI) Biomass Suppliers List

UK-London: System quality assurance planning services.

Section I: Contracting Authority
   I.1)Name, Addresses and Contact Point(s):
      Department of Energy and Climate Change (DECC)
      3 Whitehall Place, London, SW1Y 2AW, United Kingdom
      Tel. +44 3000686116, Email: philippa.lord@decc.gsi.gov.uk, URL: www.decc.gov.uk, URL: www.delta-esourcing.com
      Contact: Philippa Lord, Attn: Philippa Lord
      Electronic Access URL: www.delta-esourcing.com
      Electronic Submission URL: www.delta-esourcing.com

      Further information can be obtained at: As Above       
      Specifications and additional documents: As Above       
      Tenders or requests to participate must be sent to: As Above       
   
   I.2)Type of the contracting authority:
      Ministry or any other national or federal authority, including their regional or local sub-divisions

   I.3) Main activity:
      General Public Services

   I.4) Contract award on behalf of other contracting authorities:
      The contracting authority is purchasing on behalf of other contracting authorities: No

Section II: Object Of The Contract: SERVICES
   II.1)Description
      II.1.1)Title attributed to the contract by the contracting authority: Renewable Heat Incentive (RHI) Biomass Suppliers List
      II.1.2)Type of contract and location of works, place of delivery or of performance: SERVICES         
         Service Category: 27

         Region Codes: UK - UNITED KINGDOM         
      II.1.3) Information about a public contract, a framework or a dynamic purchasing system:The notice involves a public contract                                                       
      
      II.1.5)Short description of the contract or purchase:
      System quality assurance planning services. System quality assurance assessment and review services. Project management consultancy services. Administrative development project services. Web page editing software development services. Keywords: System quality assurance planning services. System quality assurance assessment and review services. Project management consultancy services. Administrative development project services. Web page editing software development services.

To procure a contractor to set up and manage the RHI Biomass Suppliers List until 2016.
The Biomass Suppliers List should consist of suppliers of solid biomass fuel (log, chip or pellet) who have demonstrated that their supplies meet the RHI sustainability criteria, and self-suppliers of woody biomass, as defined below. The key aim of the Biomass Suppliers List is to create a single list of biomass suppliers for both domestic and non-domestic RHI participants. This will provide a mechanism for RHI participants to know they are buying solid biomass from a sustainable source which meets regulations.

In order to register on the RHI Biomass Suppliers List, suppliers will be required to demonstrate compliance with the following RHI sustainability criteria:
•   The RHI Greenhouse Gas (GHG) criteria. Suppliers registering on the List will be required to verify that the emissions from the cultivation, processing and transport of biomass achieves a saving of at least 60% against the EU fossil fuel average for heat, when used in a boiler which achieves an average of 70% seasonal efficiency (≤ 34.8 g CO2 per MJ), calculated using the life cycle assessment set out in the European Commission’s 2010 report on ‘Sustainability requirements for the use of solid and gaseous biomass sources in electricity, heating and cooling SEC 2010 65 Final’ . This will become mandatory in 2014 – see the Non-domestic RHI Autumn 2013 Government Response ‘Improving Support, Increasing Uptake’ for further details.
•   DECC has also published its intention to introduce legislated RHI land criteria, which will come into force no later than April 2015. Policy development of land criteria is ongoing and the introduction of land criteria is subject to EU or global legislation. As such, land criteria will not be marked as part of the tender evaluation.

Suppliers of biomass who wish to be on the List will be required to submit data for audit by the Contractor. Suppliers who successfully register on the RHI Biomass Suppliers List will be permitted to label their compliant products with a statement or mark to illustrate that this fuel complies with RHI sustainability criteria.

In high-level terms, the Contractor will be required to –
•   Create an online registration process for biomass suppliers and secure Customer Relationship Management (CRM) platform (database), ready for the implementation of RHI regulatory requirements;
•   Develop and administer a robust mechanism for auditing against the RHI greenhouse gas (GHG) emissions criteria and for ensuring only those suppliers sourcing biomass from legal and sustainable sources can access Government-supported markets;
•   Develop and administer a robust mechanism for verifying that a registered supplier is a fit and proper person. For the purposes of the List, a ‘fit and proper person’ means that the supplier clearly differentiates stocks of fuel which meet the RHI requirements from those which do not, and ensures that any fuel marketed as meeting the RHI criteria does meet those criteria;
•   Audit List members and applicants to the List against the RHI GHG emissions criteria;
•   Maintain an accurate, publically available, browseable and up-to-date database of registered, commercial (large-scale and local) biomass suppliers for RHI applicants;
•   Develop and administer a process for ensuring that self-suppliers accredited to the RHI scheme can meet the wider scheme requirements;
•   Develop and administer a process to manage non-compliance with the List requirements;
•   Report to DECC, in an agreed format, on monitoring and evaluation of the scheme, and provide record-level data for further analysis of the scheme by DECC;
•   Achieve these requirements in time for the List go-live in April 2014.

These high-level requirements are expanded upon in the Invitation to Tender.

DECC would also expect the Contractor to provide –
•   Project management services for the project to ensure high quality outputs to time and budget;
•   A service that is flexible and can adapt to potential future changes to sustainability criteria effectively in response to DECC’s requirements

We would expect the Contractor to fulfil the following obligations when developing a solution that meets DECC’s requirements. However, the Tenderer should not be limited to the requirements listed below. If they can suggest different approaches to achieve the same or similar outputs, then these will be considered. The following requirements have been separated out into the categories of ‘set-up’ and ‘ongoing responsibilities’ as a reflection of the dual nature of the project:
Set-up
a.   Design a secure, robust, reliable online system for managing applications to the list, for sign-off by DECC. This must hold data securely and be low cost for biomass suppliers. This must include as minimum a web-based application portal, secure CRM, simple online calculator and a public-facing List of suppliers;
b.   Provide a public-facing List of suppliers (commercial and local suppliers – as defined in the Invitation to Tender) which RHI participants can browse to find a supplier appropriate for their needs;
c.   Design and implement a registration process that is clear, customer-friendly and easy to use;
a.   Develop a methodology which verifies that registered suppliers have met the legislated RHI sustainability criteria. This methodology must take into account different types of solid biomass: woody biomass, energy crops and other as defined by the European Commission’s 2010 report – taking into account differing supply chains between products (such as regional depots for wood pellets, local supply for wood chip). Tenderers should consider that any financial or administrative burden on suppliers must take into account the size and annual turnover of the organisation registering, as set out in the section above;
d.   Ensure that the Biomass Suppliers List is accessible to applications from non-UK firms, where these meet the sustainability criteria;
e.   Develop a non-compliance regime, detailing how to treat fraudulent submissions, but which allows flexibility for errors made in good faith. This should be coupled with an internal review process to allow for potential appeals from suppliers;
f.   To provide project management services to ensure high quality outputs to time and budget.
Administration
a.   Verify that applicants meet sustainability requirements and that they are fit and proper persons, as defined above;
b.   Enable applicants to be clear on eligibility requirements and obtain all the necessary information in relation to joining and maintaining a place on the Biomass Suppliers List;
c.   Provide accurate and timely reporting in a format agreed by DECC on the operation of the scheme to enable DECC to carry out a review of the scheme stage by stage in light of market developments. Environmental impacts of the scheme will be monitored through performance against the RHI GHG emissions criteria set out above, which will be introduced into legislation in 2014;
d.   Provide public reporting and analysis of performance/audit findings;
e.   Maintain an accurate and up-to-date database and remove fraudulent businesses from the List;
f.   Provide facilitation and stakeholder engagement services, including attending Industry Advisory Groups run by DECC, answering questions and providing feedback to members of the public, either online or by telephone.

This contract will run for three years.

This requirement is a new service and may be subject to changes / additional requirements throughout the duration of the contract.
         
      II.1.6)Common Procurement Vocabulary:
         72224200 - System quality assurance planning services.
         
         72225000 - System quality assurance assessment and review services.
         
         72224000 - Project management consultancy services.
         
         75112100 - Administrative development project services.
         
         72212224 - Web page editing software development services.
         

      II.1.7) Information about Government Procurement Agreement (GPA):
         The contract is covered by the Government Procurement Agreement (GPA): Not Provided      
      II.1.8)Lots:
         This contract is divided into lots: No
      II.1.9)Information about variants:
         Variants will be accepted: No    
   
   II.2)Quantity Or Scope Of The Contract
      II.2.1)Total quantity or scope:
      The Contractor is obliged to establish the Biomass Suppliers List in line with DECC’s requirements, and to administer its running for three financial years. In addition, DECC would also expect the Contractor to provide regular updates, analysis and monitoring of the scheme in the form of reports and record level data in Excel format order to enable DECC to carry out independent analysis, along with any other information which may be reasonably requested by DECC. Tenderers are asked to set out plans for how to deliver the List within the policy timescales outlined above. However, DECC would be open to receiving suggestions on delivery timescales which would lead to greater long-term success of the scheme.
a.   The Tenderer is required to create a methodology which will enable it to measure whether suppliers of biomass fuels are meeting the RHI sustainability criteria legislated by DECC. These will form the basis of the List’s eligibility requirements. DECC will work with the successful Tenderer to finalise the data and reporting requirements once the methodology has been submitted and approved by DECC.
b.   The Contractor is required to register applicants on the list (biomass fuel suppliers, defined in the Invitation to Tender) who have demonstrated that they meet DECC’s RHI GHG emissions criteria, set out in paragraph 2.4. Applicants to the list may include organisations based outside the UK who are intending to supply fuels for use by RHI participants.
c.   In addition, the Contractor would be required to administer an ongoing risk-based audit for suppliers on the list to ensure that suppliers are continuing to adhere to DECC’s standards after they have registered onto the List. Tenderers are required to propose methodologies for accreditation and ongoing audit which take into account the size and annual turnover of the organisation registering. This is in order to make membership of the Biomass Supplier List accessible and achievable for small and medium enterprises, local suppliers and self-suppliers.
d.   Tenderers are required to develop a methodology for managing non-compliant suppliers who have registered on the List. We recommend that if registered suppliers are found not to have met the required standards, the Contractor may consider moving them into a probationary period which will allow them to re-comply. If suppliers are shown not have re-complied at the end of this period, suppliers may be removed from the List. DECC suggests that the length of this probationary period should be 6 months, as previous market intelligence suggests that this is the average time taken to switch supply contracts. We will however consider alternative lengths and methods, provided these are justified.
e.   Tenders should consider methods of managing the risk of fraud generally, and to disincentivise applicants from making fraudulent submissions. Tenderers will be asked to demonstrate how they meet this requirement.
f.   To support fuel suppliers assessing their GHG lifecycle, the UK Government has funded the development of a Biomass and Biogas Carbon Calculator Tool (B2C2). The B2C2 tool and its userguide can be downloaded from the Ofgem website . This calculator has been developed for solid and gaseous supply chains to electricity, heat and biomethane generators in the UK, and as such may contain some detail which is not relevant to suppliers registered on the Biomass Suppliers List. The Contractor is invited to propose a simplified version of the calculator which will enable suppliers to calculate the GHG emissions of their products and submit a self-declaration that they meet the standard, using processes and measurements which are familiar to them. The simplified version of the calculator would be required to use the basic lifecycle methodology as set out in the European Commission’s 2010 report on ‘Sustainability requirements for the use of solid and gaseous biomass sources in electricity, heating and cooling SEC 2010 65 Final’ .
g.   As this procurement is for a new service, changes may need to be added and applied throughout the duration of this contract. These will be managed as variations to contract.

Optional:
a.   Tenderers are asked to consider how to incentivise data capture from biomass suppliers (either applicants to or members of the List), in order to maximise data completeness without placing a high administrative burden on suppliers.
b.   In paragraph 1.3, we refer to a statement with which suppliers registered on the List can label their RHI-compliant fuel. The Contractor is invited to propose a logo to either replace or support this statement, for sign-off by DECC.         
         Estimated value excluding VAT: 800,000
         Currency: GBP
                        
      
      II.2.2)Options: No          
         II.2.3)Information about renewals:
            This contract is subject to renewal: Not Provided         
   II.3)Duration Of The Contract Or Time-Limit For Completion      
         Duration in months: 36 (from the award of the contract)

   Information About Lots
               
Section III: Legal, Economic, Financial And Technical Information
   III.1)Conditions relating to the contract
      III.1.1)Deposits and guarantees required:
      Not Provided
      
      III.1.2)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:
      Not Provided
      
      III.1.3)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:
      Not Provided
      
      III.1.4)Other particular conditions:
         The performance of the contract is subject to particular conditions: Not Provided      
   III.2)Conditions For Participation
      III.2.1)Personal situation of economic operators, including requirements relating to enrolment on professional or trade registers:
      Not Provided      
      III.2.2)Economic and financial capacity
         Economic and financial capacity - means of proof required:         
         Not Provided
      
      III.2.3)Technical capacity
         Technical capacity - means of proof required         
         Not Provided      
      III.2.4)Information about reserved contracts: Not Provided   
   III.3)Conditions Specific To Service Contracts
      III.3.1)Information about a particular profession:
         Execution of the service is reserved to a particular profession: Not Provided      
      III.3.2)Staff responsible for the execution of the service:
         Legal persons should indicate the names and professional qualifications of the staff responsible for the execution of the service: Not Provided
Section IV: Procedure
   IV.1)Type Of Procedure
      IV.1.1)Type of procedure: Open
   
   IV.2)Award Criteria
      IV.2.1)Award criteria:      
         The most economically advantageous tender in terms of
            The criteria stated in the specifications, in the invitation to tender or to negotiate or in the descriptive document

      IV.2.2)Information about electronic auction:
         An electronic auction will be used: No       

   IV.3)Administrative Information
      IV.3.1)File reference number attributed by the contracting authority: 662/08/2013      
      IV.3.2)Previous publication(s) concerning the same contract: Yes
         Prior information notice
            Notice number in OJEU: 2013/S 168 - 291706 of 30/08/2013
               
         Other previous publications: No                

      IV.3.3)Conditions for obtaining specifications and additional documents or descriptive document:

      Date: 19/12/2013
      Time-limit for receipt of requests for documents or for accessing documents: 17:00
         Payable documents: No       
      
      IV.3.4)Time-limit for receipt of tenders or requests to participate
         Date: 20/12/2013
         Time: 16:00      
      IV.3.6)Language(s) in which tenders or requests to participate may be drawn up:         English
         
      IV.3.7)Minimum time frame during which the tenderer must maintain the tender
         Duration in month(s): 12
      
      IV.3.8)Conditions for opening tenders
         Date: 20/12/2013
         Time: 17:00


Section VI: Complementary Information

   VI.1)This Is A Recurrent Procurement: No
   VI.2)Information about European Union funds:
      The contract is related to a project and/or programme financed by European Union funds: No       
   VI.3)Additional Information: The contracting authority considers that this contract may be suitable for economic operators that are small or medium enterprises (SMEs). However, any selection of tenderers will be based solely on the criteria set out for the procurement, and the contract will be awarded on the basis of the most economically advantageous tender.

https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=80953765
For more information about this opportunity, please visit the Delta eSourcing portal at:
https://www.delta-esourcing.com/tenders/UK-UK-London:-System-quality-assurance-planning-services./984FFVRQHD

To respond to this opportunity, please click here:
https://www.delta-esourcing.com/respond/984FFVRQHD
GO-20131125-PRO-5289797 TKR-20131125-PRO-5289796
   
   VI.4)Procedures For Appeal
      VI.4.1)Body responsible for appeal procedures:
      Department of Energy and Climate Change (DECC)
      3 Whitehall Place, London, SW1y 2 AW, United Kingdom

      VI.4.2)Lodging of appeals: Not Provided   
   
      VI.4.3)Service from which information about the lodging of appeals may be obtained:
            Not Provided

   VI.5) Date Of Dispatch Of This Notice: 25/11/2013

ANNEX A