Cleveland Police currently purchases its gas and electricity supplies through a CPB (Central Purchasing Body) called NEPO.
NEPO manages a flexible framework agreement for gas and electricity supplies on behalf of approximately 26 local authorities within the North East region. The overall annual value of the electricity contract across the region is approximately £55,000,000.
The current electricity supply contract is due for renewal on the 31st March 2019. Following a NEPO regional procurement exercise, a contract recommendation has been put forward for the supply of electricity to all participating local authorities from 1st April 2019.
The successful contractor is a new supplier and has assured a seamless transition of contracts. The contract term will be 4 years with the option to extend for a further 2 years.
It is widely recognised that one of the most cost effective ways for public sector organisations to buy energy is to use recommended frameworks through a central purchasing body (CPB) that have aggregated volumes, can offer flexible purchasing and enable best practice risk management.
The renewal of the electricity supply contract was undertaken following the NEPO category management process and protocols, a project team was established with full support from the North East region with a cross section of disciplines and member authorities being represented.
A supplier engagement programme was embarked upon to ensure a competitive number of bids were received.
To make certain, the structure of the ITT encouraged suppliers to bid and that the project team fully understood the market and the potential of what this procurement could deliver.
A full EU compliant tender process was then undertaken with five suppliers submitting final tender submissions.
The project evaluation team agreed the format and based the tender package on the following criteria:
- Buying & risk management
- Customer requirement
- Implementation plan
- Exit strategy
- Energy efficiency and innovation.
The submissions were evaluated on the following criteria:
- Quality 55%
- Cost 25%
- Quality Demand Side Services 10%
- System Demonstration 5%
- Social Value 5%.
On assessment of the returned tender submissions, it was clear that Bidder B provided the most detailed tender response which provided the evaluation team with assurance that the contractor was clearly competent to deliver the specification of requirements.
Bidder Total Score
Bidder A 57.23%
Bidder B 89.36%
Bidder C 81.93%
Bidder D 61.32%
Bidder E 86.72%.
It is, therefore, recommended that due to the significant scoring difference between Bidder B and the remaining bidders that the contract be awarded direct to Bidder B.