Energy and related services

Description

The Royal Berkshire Trust has an existing energy performance contract that has been in operation since 2012 and does not expire for a further 7 years. The existing contract gives the existing contractor control of the boiler house and supply of heat and electricity for the site. As part of its HIPS 2 programme the Department of Health has awarded the Trust a grant to allow it to carry out certain enabling works in advance of a site redevelopment project. The nature of the funding is that it must be spent this financial year. The trust has reviewed its options and concluded that the incumbent is the only possible supplier of the required changes to the contract The Trust is intending to commission the existing contractor to carry out the enabling works and accept the additional energy savings risk associated with the changes for the remainder of the existing contract term. The Trust intends to include a provision that would allow it to extend the revised contract to a maximum term of 15. The Royal Berkshire Trust has an existing energy performance contract that has been in operation since 2012 and does not expire for a further 7 years. The existing contract gives the existing contractor control of the boiler house and supply of heat and electricity for the site. As part of its HIPS 2 programme the Department of Health has awarded the Trust a grant to allow it to carry out certain enabling works in advance of a site redevelopment project. The nature of the funding is that it must be spent this financial year. The trust has reviewed its options and concluded that the incumbent is the only possible supplier of the required changes to the contract The Trust is intending to commission the existing contractor to carry out the enabling works and accept the additional energy savings risk associated with the changes for the remainder of the existing contract term. The Trust intends to include a provision that would allow it to extend the revised contract to a maximum term of 15 years should the timing of the site redevelopment require it. This decision will be made at the relevant date once the HIPS2 programme is underway. This is a long term partnership and investment programme that is being expedited to meet the funding expectations and is of major benefit to the Trust. Veolia currently hold the contract for the provision of energy to the hospital and have a lease for the site energy center under a contract with a further 8 years to run. This means that they are the only company that could deliver the integrated solution within the grant timescales. This is a proprietary project as only one supplier could meet the full needs of this project. The lease and existing contract give Veolia proprietary advantages that would make alternative bids uneconomic, which added to the accelerated programme required by the DH grant and the implications of the current Covid requirements give the Trust no choice but to place the contract with the incumbent.