Decision details

As a result of the procurement process to award the following contracts:

·         The Design & Build JCT Contract for the delivery of multiple air source heat pump units and associated works at the Shoreham Centre, to K&T Heating Services Ltd. The contract amount is £398,506.40;

·         The Grid Reinforcement Works to upgrade the import capacity of the Shoreham Centre to UK Power Networks. The Contract amount is £184,681.40

The total amount for this work is within the authorised budget as authorised by the Joint Strategic Committee on 7 September 2021.

To install 6no large Air Source Heat Pump units on the roof of the Shoreham Centre and deliver enabling works that will convert the existing gas-fired system to a bi-valent system, utilising funding from the Public Sector Decarbonisation Scheme (PSDS). New, efficient gas-boilers will also replace failing plant within the old part of the building and heat metering and weather compensation will enable building users to have better control and monitoring of the heat used on site.

As per the Councils' Contract Standing Order 8.8, an open tender procedure was run, with 4 bids received by the Councils. Bids were evaluated by a team of officers and the bid from the recommended contractor represents the Most Economically Advantageous Tender return. The bid scored highest for both quality and price.

Additionally, the council is required to complete grid reinforcement works at the site. These can only be completed by the local Distribution Network Operator (DNO) - in this case, UK Power Networks (UKPN). Two site visits were conducted and a quote received from UKPN on 12 August 2021. It is recommended to accept this quote to enable the works to continue.

3 other bids were submitted that scored less favourably for both quality and price. The PSDS funding secured is directly linked to the amount of carbon emissions saved and, as such, requires a renewable heating system to be installed. A fully-renewable heating system was considered too disruptive for the building at this moment in time, however the proposed ASHP-led heating system will deliver the bulk of the heating requirement, reduce gas consumption in the building by over 50% and be compatible with future works to reduce the building's emissions.

The grid reinforcement works are a prerequisite to the works proceeding. Given the monopoly of the DNO there are no alternative options to deliver the project other than accepting this quote.