The Department for Business, Energy and Industrial Strategy (BEIS) is using Delta eSourcing to run this tender exercise
Notice Summary |
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Title: | Evaluation of the first round of Electricity Market Reform delivery and the Final Investment Decision (FID) Enabling for Renewables process. |
Notice type: | Contract Notice |
Authority: | The Department for Business, Energy and Industrial Strategy (BEIS) |
Nature of contract: | Services |
Procedure: | Open |
Short Description: | The Department would like to commission an evaluation covering the first round of EMR (Electricity Market Reform) delivery and the transitional arrangements to EMR. This shall incorporate the first allocation round of Contracts for Difference (CfDs), the first Capacity Market auction and the allocation of early CfDs through the FID Enabling for Renewables process. The evaluations of EMR (the first Capacity Auction and first allocation round of CfDs) and FID Enabling for Renewables are budgeted by two different parts of DECC. There is a shared set of evaluation questions covering both programmes, set out in the ITT. Given the synergies between the two programmes, research methods and fieldwork should be aligned as closely as possible. However, the final deliverables for this contract should be presented separately (one report for EMR, one report for FID Enabling for Renewables, with a possible report for lessons common to the two instruments). EMR is the government’s response to the challenges facing the electricity sector. The aim of EMR is to undertake reform so the UK can attract the investment in electricity generation needed to meet its’ renewable and carbon emission targets in the most cost-effective way and to enable a secure, affordable supply of electricity towards the end of this decade and in the longer term. EMR will be delivered through two principal interventions. • Replacing the current mechanism for incentivising low carbon technology electricity generation (the Renewables Obligation) with a Contract for Difference (CfD) which is open to all forms of low-carbon generation. • Establishing at least cost to the electricity consumer a Capacity Market (CM) in which electricity capacity providers bid for contracts to provide capacity at times of system stress. The EMR programme is long-term, designed to meet the UK’s long-term energy objectives. The evaluators are being asked to report on the first round of the programme and the process leading up to delivery. The evaluation will be a key source of evidence for the Department and their Delivery Partners in their on-going delivery of the programme and lessons learned will be required to feed into any changes that may be required ahead of future rounds of the programme. Further detail on the background and objectives of EMR are set out in the attached ITT and also can be found on the EMR pages on gov.uk (https://www.gov.uk/government/policies/maintaining-uk-energy-security--2/supporting-pages/electricity-market-reform). The FID Enabling for Renewables process was a key part of the transition from the Renewables Obligation to CfDs, and intended to help the Department move more quickly to price competition in the enduring regime. In delivering the Final Investment Decision Enabling for Renewables project, the Department sought to enable developers of renewable energy projects to take final investment decisions, or other critical investment decisions directly impacting on the time to commissioning the project, which would otherwise be delayed by the uncertainty caused by the transition to the enduring CFD regime. The principal objective of this project was to avoid any hiatus in investment during changes to the market under EMR ahead of implementation of the enduring CFD regime. For further details on the FID Enabling for Renewables process, please see the attached ITT and the relevant documentation on gov.uk (https://www.gov.uk/government/publications/increasing-certainty-for-investors-in-renewable-electricity-final-investment-decision-enabling-for-renewables). The aims of the evaluation are: • Assurance and lessons-learning on the first year operation of EMR processes • Evidence-based advice on EMR policy and processes to inform the second year of operation • Scoping and an initial examination of the extent to which EMR and FID Enabling for Renewables are on track to meet objectives • Identification of any gaps in the supply of data and any other issues that will be required to evaluate the programmes over the longer-term A successful com |
Published: | 25/07/2014 15:51 |
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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 3000688185, Email: james.white@decc.gsi.gov.uk, URL: www.decc.gsi.gov.uk, URL: www.delta-esourcing.com
Contact: James White, Attn: James White
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: Evaluation of the first round of Electricity Market Reform delivery and the Final Investment Decision (FID) Enabling for Renewables process.
II.1.2)Type of contract and location of works, place of delivery or of performance: SERVICES
Service Category: 8
Region Codes: UK - UNITED KINGDOM
II.1.3) Information about a public contract, a framework or a dynamic purchasing system:Not Provided
II.1.5)Short description of the contract or purchase:
Research and development consultancy services. Test and Evaluation. The Department would like to commission an evaluation covering the first round of EMR (Electricity Market Reform) delivery and the transitional arrangements to EMR. This shall incorporate the first allocation round of Contracts for Difference (CfDs), the first Capacity Market auction and the allocation of early CfDs through the FID Enabling for Renewables process.
The evaluations of EMR (the first Capacity Auction and first allocation round of CfDs) and FID Enabling for Renewables are budgeted by two different parts of DECC. There is a shared set of evaluation questions covering both programmes, set out in the ITT. Given the synergies between the two programmes, research methods and fieldwork should be aligned as closely as possible. However, the final deliverables for this contract should be presented separately (one report for EMR, one report for FID Enabling for Renewables, with a possible report for lessons common to the two instruments).
EMR is the government’s response to the challenges facing the electricity sector. The aim of EMR is to undertake reform so the UK can attract the investment in electricity generation needed to meet its’ renewable and carbon emission targets in the most cost-effective way and to enable a secure, affordable supply of electricity towards the end of this decade and in the longer term.
EMR will be delivered through two principal interventions.
• Replacing the current mechanism for incentivising low carbon technology electricity generation (the Renewables Obligation) with a Contract for Difference (CfD) which is open to all forms of low-carbon generation.
• Establishing at least cost to the electricity consumer a Capacity Market (CM) in which electricity capacity providers bid for contracts to provide capacity at times of system stress.
The EMR programme is long-term, designed to meet the UK’s long-term energy objectives. The evaluators are being asked to report on the first round of the programme and the process leading up to delivery. The evaluation will be a key source of evidence for the Department and their Delivery Partners in their on-going delivery of the programme and lessons learned will be required to feed into any changes that may be required ahead of future rounds of the programme.
Further detail on the background and objectives of EMR are set out in the attached ITT and also can be found on the EMR pages on gov.uk (https://www.gov.uk/government/policies/maintaining-uk-energy-security--2/supporting-pages/electricity-market-reform).
The FID Enabling for Renewables process was a key part of the transition from the Renewables Obligation to CfDs, and intended to help the Department move more quickly to price competition in the enduring regime.
In delivering the Final Investment Decision Enabling for Renewables project, the Department sought to enable developers of renewable energy projects to take final investment decisions, or other critical investment decisions directly impacting on the time to commissioning the project, which would otherwise be delayed by the uncertainty caused by the transition to the enduring CFD regime.
The principal objective of this project was to avoid any hiatus in investment during changes to the market under EMR ahead of implementation of the enduring CFD regime.
For further details on the FID Enabling for Renewables process, please see the attached ITT and the relevant documentation on gov.uk (https://www.gov.uk/government/publications/increasing-certainty-for-investors-in-renewable-electricity-final-investment-decision-enabling-for-renewables).
The aims of the evaluation are:
• Assurance and lessons-learning on the first year operation of EMR processes
• Evidence-based advice on EMR policy and processes to inform the second year of operation
• Scoping and an initial examination of the extent to which EMR and FID Enabling for Renewables are on track to meet objectives
• Identification of any gaps in the supply of data and any other issues that will be required to evaluate the programmes over the longer-term
A successful commissioned evaluation will:
• Provide a robust, thorough evaluation that withstands external scrutiny and is credible for stakeholders.
• Make appropriate and practical evidence-based recommendations for improvements in processes where appropriate
• Suggest methodologies and timescales by which to measure some aspects of the mechanisms, in order to build a forward-looking evidence base and facilitate future evaluation of long-term goals
• Make effective use of the synergies of the programmes /processes included in the scope to achieve efficiencies in the delivery of the evaluation.
Budget Breakdown
EMR portion of contract range between: £300,000 - £400,000 excluding VAT
FID Enabling for Renewables portion of contract range between £75,000 - £95,000 excluding VAT
The duration of this contract will be for 7 months
Work is expected on the final report for the EMR evaluation in April 2015, which will potentially be in the range of £50,000 (excl. VAT). This is additional to the value above and subject to internal budget approval. Therefore this element will be subject to a contract break. There will be an option to extend the contract by 1-2 months, which shall be discussed upon receipt of the March interim report.
The FID Enabling for Renewables final report should be delivered on 01/03/2015.
The EMR final report should be delivered on 30/04/2015.
Please note this requirement may be subject to changes throughout the duration of the evaluations and additional requirements may be added or removed from this requirement.
The Department makes payments on an accruals basis and releases budget one financial year in advance.
II.1.6)Common Procurement Vocabulary:
73200000 - Research and development consultancy services.
73430000 - Test and Evaluation.
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 contract will run for 7 months with the option to extend a further 1-2 months. The Authority will appoint one supplier to complete the evaluation of EMR and FID Enabling for Renewables.
The scope for the projects is:
• An evaluation of the first round of EMR (the first capacity auction and the first allocation of Contracts for Difference), and evaluation of the FID Enabling for Renewables process leading to the allocation of investment contracts in May 2014. The research will comprise a mixture of process assurance, analysis of outputs against Departmental objectives and qualitative work with external participants and stakeholders in the electricity generation and investment sectors.
• Suggest methodologies and timescales by which to measure some aspects of the mechanisms, in order to build a forward-looking evidence base and facilitate future evaluation of long-term goals.
Potential tenderers are invited to view the Research Questions (section 3.1 of the ITT), which will determine the focus of this evaluation. It is important to note that, whilst some questions are common to EMR and FID Enabling for Renewables, some questions are applicable only to one of the projects. Some questions are exploratory and would require the tenderer to scope the methodology that could best answer these questions and take a view on the timescale that would be necessary.
Estimated value excluding VAT: £375,000 – £495,000.
• EMR portion of contract range between: £300,000 - £400,000 excluding VAT
• FID Enabling for Renewables portion of contract range between £75,000 - £95,000 excluding VAT
The Department makes payments on an accruals basis and releases budget one financial year in advance.
Work is expected on the final report for the EMR evaluation in April 2015, which will potentially be in the range of £50,000 (excl. VAT). This is additional to the value above and subject to internal budget approval. Therefore this element will be subject to a contract break. There will be an option to extend the contract by 1-2 months, which shall be discussed upon receipt of the interim report.
Estimated value excluding VAT:
Range between: 300,000 and 495,000
Currency: GBP
II.2.2)Options: Not Provided
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: 7 (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: Not Provided
IV.3)Administrative Information
IV.3.1)File reference number attributed by the contracting authority: 848/7/2014
IV.3.2)Previous publication(s) concerning the same contract: No
IV.3.3)Conditions for obtaining specifications and additional documents or descriptive document:
Date: 04/09/2014
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: 05/09/2014
Time: 14:00
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 Not Provided
IV.3.8)Conditions for opening tenders
Date: 05/09/2014
Time: 14:00
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.
For more information about this opportunity, please visit the Delta eSourcing portal at:
https://www.delta-esourcing.com/tenders/UK-UK-London:-Research-and-development-consultancy-services./BD2452YC53
To respond to this opportunity, please click here:
https://www.delta-esourcing.com/respond/BD2452YC53
.
For more information about this opportunity, please visit the Delta eSourcing portal at:
https://www.delta-esourcing.com/tenders/UK-UK-London:-Research-and-development-consultancy-services./BD2452YC53
To respond to this opportunity, please click here:
https://www.delta-esourcing.com/respond/BD2452YC53
GO-2014725-PRO-5842983 TKR-2014725-PRO-5842982
VI.4)Procedures For Appeal
VI.4.1)Body responsible for appeal procedures:
Department of Energy and Climate Change (DECC)
3 Whitehall Place, London, SW1A 2AH, United Kingdom
Tel. +44 3000688185, Email: james.white@decc.gsi.gov.uk
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: 25/07/2014
ANNEX A