BE23183 - Heat Network Zoning Programme – Framework Agreement

Lot 1 – National Zoning Methodology (Aiming to support ~50 towns & cities in years 1 & 2) Delivery shall be made in the following Work Packages: Work Package 1 – Local data collection and stakeholder engagement The following deliverables shall be required as a minimum for WP1: 1. Baseline assessment: A table showing the key anchor loads, potential low carbon heat source types available, existing district and communal heat networks, key constraints in the study area using a DESNZ-provided template. An assessment of any existing data sources and relationships with key stakeholders related to each of the above, conducted in conjunction with LA stakeholders, captured in the above template. 2. Stakeholder Communications Plan: A document detailing the governance of and channels and approach to be used for stakeholder engagement, to be approved by DESNZ and LA, developed using a DESNZ-provided outline template. 3. Customised stakeholder communication materials: Communication materials or content in any format for use with stakeholders relevant to the study area and project. These should be based on DESNZ-provided templates and starting materials (e.g., Joint DESNZ and LA-branded introductory letters and presentations). 4. Study area stakeholder directory and stakeholder communications log, key meeting records: A database of organisations and contacts relevant to the study area, and a tracker of stakeholder engagement with those stakeholders, using a DESNZ-provided format. Records of key meetings held with stakeholders, including decisions made. 5. Study area dataset directory, datasets and other documents provided by stakeholders: • A table providing meta-data about incoming project materials provided by stakeholders relevant to the study area and project, using a DESNZ-provided format. • A set of folders aligned with entries in the dataset directory, which hold the materials provided by external stakeholders, including “raw” datasets. 6. Data transformation log: A table in a DESNZ-provided format, in which key data cleaning, enhancement and transformations made to the raw datasets for use in the MID formats are recorded. This provides an audit trail on the provenance of the data uploaded to the National HNZ Model. 7. Local data in MID formats: A study-area-level geopackage and tables containing data which have been collated and transformed (see item 6) to match a format specified by DESNZ, ready for import into the NZM. This will allow revised HNZs to be generated by the NZM for the local refinement exercise. A geopackage is a structured set of map layers and geocoded data for a given geographic boundary. 8. Project management deliverables, As specified in the project management section, below, including general information management requirements for project filing. Examples deliverables may include Supplier contact list and regular project reporting (progress vs. deliverables, RAID register, budget and spend tracker, project-level consolidated deliverable trackers for all work packages). Services under this lot will be agreed on a Task Order basis, with the scope detailed in advance and a budget allocated to it. The call off procedure for Lot 1 is as follows: The call off procedure for the framework (city allocation) will be in order of consultant scoring at procurement stage. The highest scoring, successful consultant will be allocated one of the locations by DESNZ such as a town/city or London Borough then the second highest scoring consultant will be given the next allocated city by DESNZ. This will continue down the list of consultants and revolve back to the start of the consultants list until the cities are fully allocated. A consultant can decline to take on additional cities after Allocation Round 1 if they are not able to resource further cities.

Lot 2 – Advanced Zoning Delivery which is sub lotted as follows: Aiming to support Zonal Development Plans & Delivery for up to 15 zones, with a goal to take projects to commercialisation/ get them to market with a delivery partner. • Sub-Lot 2.1 – Project Management Support • Sub-Lot 2.2 – Technical Support • Sub-Lot 2.3 – Commercial Support • Sub-Lot 2.4 – Financial Support • Sub-Lot 2.5 – Legal Support Delivery is expected the following Work Packages: WP1 – Information review and project scoping Outcomes WP1 Upon the successful completion of this WP, background information has been reviewed, summarised and assessed prior to review with the LA and DESNZ. The LA is ready to progress onto other WPs required and there is a clear scope of tasks for subsequent WPs highlighting where specialists from each sub-lot will be required. A decision gate upon completion of this work package will inform next steps in project development. WP2 – Zonal Network Concept Definition and Delivery Planning Outcomes WP2 Upon the successful completion of this WP, LAs will possess a solid grasp of the opportunity at hand and a clear roadmap for bringing it to the market. A decision gate upon completion of this WP will inform next steps in project development. WP3 – Detailed Business Case and Commercialisation Support Outcomes WP3 By the end of this process, the LA and any partners will have taken a final decision on the project, including any appropriate investment decisions. The project will be ready to be taken to market in whatever form/route deemed most appropriate by the business case, and the market will be primed to respond. The LA will have been supported to bring the project to market through a successful procurement exercise. WP4 – Delivery support post-commercialisation Outcomes WP4 Upon the completion of this WP, the following indicative outcomes are expected to be delivered: • Successful delivery of the HN project • Achievement of the HN project/programme(s) benefits outlined by the FBC (or equivalent) • Delivery of works to time and budget • Delivery of quality final project, leading to commercially viable HN infrastructure and commercial vehicle • Carbon savings as outlined by the FBC (or equivalent) • Heat provision to the entities within the brief • Meet all of the HN project(s) KPIs as outlined by the FBC (including system-wide energy efficiency, financial performance, carbon savings, resilience, regulatory compliance, etc.) WP5 – Further support • Heat network technical advisory, design and delivery • Project and programme strategic advisory • Project, programme and design management, schedule, risk, quality, cost, assurance, integrated controls, reporting, business case, procurement and administration • Stakeholder engagement and management • Data collection and management • Information management • Model development, management and operation • Communications, branding and marketing • Heat network zone consultation, refinement and designation • Central Authority design, development and operation • Technical and non-technical training material development and training delivery • Zoning coordinator support • Lessons learned & programme/project review support • Typical HNDU Feasibility and Detailed Project Development studies • Legal advisory • Financial advisory • Commercial advisory Allocation of Work: The ranking for the framework will be in order of consultant scoring at procurement stage. The highest scoring, successful consultant will be allocated a study area by DESNZ, then the second highest scoring consultant will be allocated the second project by DESNZ. This will continue down the list of consultants and revolve back to the start of the consultants list until all study areas are allocated.

Lot 3 - National Zoning Model will be sub lotted as follows: • Network Zoning Model Development • Network Zoning Model Management and data analytics and management Broadly, sub-lot 3.1 seeks to appoint Suppliers to enable the further development, operation and ongoing assurance of the NZM while sub-lot 3.2 seeks to appoint Suppliers to provide NZM delivery management services and associated data collection, management and analytical services to support the model and wider HNZ lifecycle. Bidders may apply for one or more lots however the bids for each sub-lot will be evaluated separately. Services under Lot 3.1 and 3.2 of the Framework shall be awarded following a further competition. When running a further competition, all suppliers awarded under the lot will be invited to bid. Before suppliers are invited to bid, a document suite including a Specification of the requirements and Contract will be drafted. Once the documents have been prepared in alignment with the Departments requirements, suppliers will be able to bid. Further competitions will be issued via the Departments eSourcing tool (Currently Jaggaer). Suppliers will be allowed sufficient time to respond to the further competition and a permitted timeframe for bidders to raise clarification questions will be advised. Responses to clarifications will be shared to all suppliers invited to tender. After the deadline for submissions has passed, suppliers will be evaluated based on the responses and assessment criteria defined and included within the tender pack.