ED0389-25 Delivery of District Heating to the Cranbrook Expansion Areas by an ESCo

• How the procedure runs: 1. Initial Tender submissions: This initial stage involves issuing the CFP – ISIT and PSQ to potential suppliers. Suppliers are invited to submit initial formal bids based on the specification. This will include pricing and detailed proposals. 2. Initial Tender evaluation: Submitted PSQs and Initial Tenders will be evaluated against the predefined evaluation criteria set out in the procurement documents. The evaluation will be undertaken by an evaluation panel, comprising of representatives from the Authority and its professional advisors. Each submission will be assessed and scored in accordance with the published scoring methodology to ensure a fair, transparent and consistent evaluation process. Following completion of the initial evaluation, suppliers will be ranked according to their total evaluation scores. In order to focus the subsequent stage of the Competitive Flexible Procedure on the strongest proposals, the Council intends to shortlist the three highest-scoring suppliers, provided they have met all mandatory requirements and achieved the minimum standards set out in the procurement documentation. Suppliers who are not ranked within the top three following the initial evaluation will not progress further in the procedure. The Authority expressly reserves the right, at its absolute discretion, to determine that the Initial Tender submissions are sufficiently complete and competitive to enable the procurement to proceed directly to contract award. In such circumstances, the Authority may elect not to undertake the Dialogue / Negotiation stage and/or the Final Tender submission stage. Accordingly, the Authority reserves the right to: • proceed directly to evaluation and award on the basis of Initial Tender submissions; and • award the Contract to the Most Advantageous Tender based on the Initial Tender submissions alone. Suppliers should therefore submit their Initial Tenders on the basis that they may be treated as final and binding, and that no opportunity for further dialogue, negotiation or revision may be provided. 3. Dialogue/Negotiation to enhance the specification: A dialogue phase may be conducted with the three shortlisted Suppliers for the sole purpose of refining and clarifying specific, limited aspects of the project requirements. For clarity, this stage is not intended to permit wholesale re-design of the solution or material departure from the published specification. Accordingly, the scope of dialogue and any negotiation during this stage shall be strictly limited to the following matters only: a. Engagement with developers, landowners or land promoters: Clarification and refinement of the Supplier’s proposed approach to engaging with relevant developers, landowners and/or land promoters, including sequencing, governance arrangements and interfaces, provided that such discussions do not materially alter the technical or commercial scope of the project. b. Programme for customer connections: Clarification and refinement of the Supplier’s proposed programme for the connection of customers to the heat network, including phasing, assumptions, dependencies and delivery sequencing. c. The Supplier’s proposed Plot Connection Agreement: Clarification and refinement of the Supplier's proposed standard form of Plot Connection Agreement. No other aspects of the Supplier’s Initial Tender submission shall be open to negotiation during this stage. In particular, the dialogue stage shall not be used to negotiate or amend core technical solutions, pricing methodology, commercial risk allocation, or any other fundamental elements of the procurement. Any clarifications or refinements arising from the dialogue phase will be reflected in the finalised specification issued to all shortlisted Suppliers prior to the Final Tender submission stage. 4. Final Tender submissions: Suppliers are then invited to submit final formal bids based on the finalised specification. This will include pricing and detailed proposals. 5. Evaluation: Submitted tenders will then be evaluated against predefined criteria such as cost, quality, innovation, and compliance. Scoring is done by panels. 6. Due Diligence Period: Before awarding the contract, further checks are conducted on the Intended Successful Supplier to validate supplier claims (e.g., financial health, references). 7. Contract Award: The successful Supplier is formally awarded the contract, and the procurement process concludes.

CPV: District-heating plant construction work · Energy and related services

Procedure method

Competitive flexible procedure

Legal basis

UKPGA · 2023/54 Procurement Act 2023

Procurement category

Services

Notice status

Closed

Procurement threshold

Above threshold (FTS publication)

Regulatory regime

Standard

Commercial structure

Stand-alone contract (no framework)

Competition type

Competitive procedure

GPA / WTO covered

Yes (GPA, CPTPP)

Recurring procurement

Unspecified in notice

First published

27 Oct 2025, 11:47 GMT

Last source update

8 May 2026, 09:43 BST

Award evaluation window

Submission end – 9 Oct 2026

Authority reference

ED0389-25

FTS notice number

2026/S 000-042289

Latest notice

Tender notice (UK4)

Classification (CPV)

District-heating plant construction workEnergy and related services

Delivery area

South West (UKK4)

Official registry OCID

ocds-h6vhtk-05d40f Find a Tender

Contract terms summary

The Project includes a milestone-based payment mechanism relating to the onward payment of the £5.95 million Green Heat Network Fund grant funding secured by the Authority.

Payments will be made to the appointed ESCo following the successful achievement of defined Project milestones set out in the ESCo Agreement. These milestones are expected to relate to key stages of Project development and delivery, including matters such as developer agreements, design development and delivery readiness.

The process will operate broadly as follows:

1. The ESCo achieves a Milestone Event.
2. The ESCo submits a Milestone Event Notification with supporting evidence.
3. The Authority reviews the submission and may request further information where required.
4. Once satisfied that the milestone has been achieved, the Authority will make the relevant milestone payment in accordance with the Agreement.

Milestone payments will only be made in respect of eligible Project costs and in accordance with the Authority’s obligations under the GHNF funding arrangements.

How it runs

1. Initial Tender submissions: This initial stage involves issuing the CFP – ISIT and PSQ to potential suppliers. Suppliers are invited to submit initial formal bids based on the specification. This will include pricing and detailed proposals.
2. Initial Tender evaluation: Submitted PSQs and Initial Tenders will be evaluated against the predefined evaluation criteria set out in the procurement documents.

The evaluation will be undertaken by an evaluation panel, comprising of representatives from the Authority and its professional advisors. Each submission will be assessed and scored in accordance with the published scoring methodology to ensure a fair, transparent and consistent evaluation process.

Following completion of the initial evaluation, suppliers will be ranked according to their total evaluation scores. In order to focus the subsequent stage of the Competitive Flexible Procedure on the strongest proposals, the Council intends to shortlist the three highest-scoring suppliers, provided they have met all mandatory requirements and achieved the minimum standards set out in the procurement documentation.

Suppliers who are not ranked within the top three following the initial evaluation will not progress further in the procedure.

The Authority expressly reserves the right, at its absolute discretion, to determine that the Initial Tender submissions are sufficiently complete and competitive to enable the procurement to proceed directly to contract award. In such circumstances, the Authority may elect not to undertake the Dialogue / Negotiation stage and/or the Final Tender submission stage.

Accordingly, the Authority reserves the right to:

• proceed directly to evaluation and award on the basis of Initial Tender submissions; and
• award the Contract to the Most Advantageous Tender based on the Initial Tender submissions alone.

Suppliers should therefore submit their Initial Tenders on the basis that they may be treated as final and binding, and that no opportunity for further dialogue, negotiation or revision may be provided.

3. Dialogue/Negotiation to enhance the specification:

A dialogue phase may be conducted with the three shortlisted Suppliers for the sole purpose of refining and clarifying specific, limited aspects of the project requirements. For clarity, this stage is not intended to permit wholesale re-design of the solution or material departure from the published specification.

Accordingly, the scope of dialogue and any negotiation during this stage shall be strictly limited to the following matters only:

a. Engagement with developers, landowners or land promoters: Clarification and refinement of the Supplier’s proposed approach to engaging with relevant developers, landowners and/or land promoters, including sequencing, governance arrangements and interfaces, provided that such discussions do not materially alter the technical or commercial scope of the project.

b. Programme for customer connections: Clarification and refinement of the Supplier’s proposed programme for the connection of customers to the heat network, including phasing, assumptions, dependencies and delivery sequencing.

c. The Supplier’s proposed Plot Connection Agreement: Clarification and refinement of the Supplier's proposed standard form of Plot Connection Agreement.

No other aspects of the Supplier’s Initial Tender submission shall be open to negotiation during this stage. In particular, the dialogue stage shall not be used to negotiate or amend core technical solutions, pricing methodology, commercial risk allocation, or any other fundamental elements of the procurement.

Any clarifications or refinements arising from the dialogue phase will be reflected in the finalised specification issued to all shortlisted Suppliers prior to the Final Tender submission stage.

4. Final Tender submissions: Suppliers are then invited to submit final formal bids based on the finalised specification. This will include pricing and detailed proposals.
5. Evaluation: Submitted tenders will then be evaluated against predefined criteria such as cost, quality, innovation, and compliance. Scoring is done by panels.
6. Due Diligence Period: Before awarding the contract, further checks are conducted on the Intended Successful Supplier to validate supplier claims (e.g., financial health, references).
7. Contract Award: The successful Supplier is formally awarded the contract, and the procurement process concludes.

Submission deadline

3 Jul 2026, 12:00 BST

Clarification deadline

19 Jun 2026, 12:00 BST

Submission channel

Official e-sourcing portal

Electronic submission

Allowed

Accepted languages

en