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DO NOT USE – GUIDELINES ONLY
Bioresources Collaboration Day
27 June 2018
DO NOT USE – GUIDELINES ONLY
Opening AddressBen Roche
DO NOT USE – GUIDELINES ONLY
AgendaTiming Topic Presenter
10:00 - 10:20 Opening Address Ben Roche
10:20 - 10:50 Overview of Lots Sam Evans & Thomas Hall
10:50 - 11:20 Networking Break
11:20 - 11:45 Overview of Lots continued
11:45 - 12:15 Procurement Darrell Griffith & James Carr
12:15 - 12:30 Summary and Reflections Ben Roche
12:30 - 13:30 Lunch
13:30 - 14:30 Open Forum Discussions
14:30 – 14:45 Break
14:45 - 16:00 Open Forum Discussions
Future Bioresources Business
Market Tested
Treatment
Capacity
Innovative
Biogas
Usage
Outcome Centred
Dewatering and
Thickening
Process
Focussed
Maintenance
Approach
Outsourced Northern Sites
Future Bioresources Business
Market Tested
Treatment
Capacity
Innovative
Biogas
Usage
Outcome Centred
Dewatering and
Thickening
Process
Focussed
Maintenance
Approach
Outsourced Northern Sites Use of Biogas
Dewatering &
Thickening
Efficient
Treatment
Capacity
DO NOT USE – GUIDELINES ONLY
Overview of LotsSam EvansThomas Hall
A - Thickening and Dewatering
Thickening and Dewatering (1 of 3)
Overview • Full outsourcing of thickening and dewatering services across the Yorkshire Water transfer sites
• Provision to be split into 2/3 lots based on geography – optional value for money variant bids considered
Service Requirements
• Provision of thickening and dewatering services for all YW sludges at transfer sites
• Option for service based contracts for minimum 15 years, VFM considered for longer
• Defined site areas within contract will be handed over to the supplier to manage for contract period
• Supplier will design, build, operate and maintain all assets (financing optional), including thickening & dewatering assets, and any buildings
Service Parameters…
• Operating standards will be set and applied, including Legal, Safety and environmental
• Stock movement: there will be SLAs around % full limit of the upstream first sludge reception tank and export tanks
• Transport of sludge to and from site to be organised by YW within pre-agreed parameters
Thickening and Dewatering (2 of 3)
Payment Mechanism
• We are looking for a payment structure that is based around minimum service standards and rewards outperformance
• Suppliers will be paid on a tDs input basis• Benefits of improved service / higher % sludge will be shared between YW and
the supplier• YW will be incentivised not to fail sludge quality / quantity commitments• Likewise the supplier will be incentivised to meet agreed parameters, for
instance providing daily minimum capacity
Sludge Quality • We will provide detail on the range of sludge types to be provided on a site specific basis
• We will require the sludge output to meet minimum % dry solids, dependent on the sludge input we provide
• Suppliers will need to work collaboratively with YW Ops to ensure the WWTW remains in compliance, for instance during incidents
…Service Parameters continued
• Contract will require self-reporting of Safety and Operational performance, including monitoring of the product and throughput
• Handback requirements to be discussed and agreed
Thickening and Dewatering (3 of 3)
Sludge Capacity
Standard Sludge Capacity• We will provide a commitment as to minimum quantities of sludge delivered
across the contract annually• We will provide a site specific window within which sludge levels are expected to
fall as a result of seasonal variation• The supplier will provide a commitment to have available capacity to treat the
site specific window of capacityForecast Sludge Increases• We will provide detail of any forecast sludge volume increases over the contract
including long term population growth projection and shorter term quality requirements
Incidents• We will require an emergency rate (cost/tDs) to be called upon in the event of an
incident, and for the supplier to work collaboratively with us to manage it
Thickening and Dewatering
Indicative Procurement Approach
Bidding thresholds
• It is anticipated that the pre-qualification threshold will be set at a low level during the RFI phase. During the RFP stage bidders shall be required to provide security packages which are commensurate with their technical solutions.
Timeline • First lot targeting late 2018
Thickening and Dewatering
LOTS
Site specific info to be provided including:
• Location,
• Average and forecast sludge thresholds,
• Site opening hours,
• Known site constraints,
• Installation criticality,
• Asset condition.
Total number of sites = 45
B - Provision of efficient sludge treatment capacity
Provision of efficient sludge treatment capacity (1 of 4)
Overview • Provision and management of efficient sludge treatment capacity from WWTW across the Yorkshire region - between 15k and 23k tDs
• To be split into 2 lots based on geography – optional value for money variant bids considered
Provision of efficient sludge treatment capacity
LOT 1
Harry providing map of sites
Provision of sludge treatment services for YW
Northern Sites - treatment capacity of circa
5.5k (by 2030) tDs
Site specific info to be provided
including:
• Site opening hours,
• Known site
constraints.
• Location,
• Average and forecast
sludge thresholds,
Transport optional.
Provision of efficient sludge treatment capacity
LOT 2
• c
Provision and management of sludge treatment capacity
of circa minimum 10k tDs to serve Yorkshire sites
Capacity can be provided by any method and
at any location and will be assessed on a
£/tDs basis.
Costs of transport should be taken into
consideration and bidders should assume
sludge will originate at Naburn.
Site specific info to be provided including:
• Location,
• Average and forecast sludge thresholds,
• Site opening hours,
• Known site constraints.
As part of the procurement exercise we will
provide an indication of the £/tDs bidders
will need to beat.
Provision of efficient sludge treatment capacity (2 of 4)
Service Requirements
• Receipt, treatment and recycling of up to 23k tDs Yorkshire Water sludges• Option for service based contracts for minimum 15 years, VFM considered for
longer• Type of treatment(s) utilised will depend on most economic on £/tDs basis• For solutions proposed on YW sites:
• Defined site areas will be handed over to the supplier to manage for contract period
• Land will be made available where appropriate as part of contract• Supplier will design and build all assets (operations, maintenance and
financing are optional), within defined site areas, including any buildings• For solutions not on YW sites, offers should be DBFOM
Provision of efficient sludge treatment capacity (3 of 4)
Service Parameters
• Operating standards will be set and applied, including Legal, Safety and environmental, e.g. Biosolids Assurance Scheme
• We are interested in efficient solutions that maximise use of resources• Stock movement: where treatment is provided on a YW site there will be
maximum allowed quantities of both raw and treated sludge on site• Import Availability - There will be minimum expectations with respect to opening
hours and import availability on a daily basis• Contract will require self-reporting of Safety and Operational performance,
including monitoring of the product and throughput. • Handback requirements to be discussed and agreed
Payment Mechanism
• We are looking for a payment structure that is based around minimum service standards and rewards outperformance
• Suppliers will be paid on a tDs input basis• Benefits of improved sludge quality will be shared between YW and the supplier
(reduced costs of sludge recycling / biogas opportunity)• YW will be incentivised not to fail sludge quality / quantity commitments• Likewise the supplier will be incentivised to meet agreed parameters, for
instance providing daily minimum capacity
Provision of efficient sludge treatment capacity (4 of 4)
Sludge Quality • We will provide detail on the range of sludge types to be provided on a site specific basis
• We will require the sludge output to meet minimum % dry solids and HACCP compliance
Sludge Capacity
Standard Sludge Capacity• We will provide a commitment as to minimum quantities of sludge delivered
across the contract annually• We will provide a site specific window within which sludge levels are expected to
fall as a result of seasonal variation• The supplier will provide a commitment to have available capacity to treat a site
specific window of capacityForecast Sludge Increases• We will provide detail of any forecast sludge volume increases over the contract
including long term population growth projection and shorter term quality requirements
Incidents• We will require an emergency rate (cost/tDs) to be called upon in the event of an
incident, and for the supplier to work collaboratively with us to manage it
Provision of efficient sludge treatment capacity
Indicative Procurement Approach
Bidding thresholds
• Bidding thresholds for both packages are to be set at a level which is commensurate with the strategic importance of the Lots. This is likely to include minimum turnover thresholds and the requirement for appropriate security.
Timeline • 2019 Procurement
Break
Back at 11:20
Overview of LotsContinued
Sam EvansThomas Hall
C – Use of Biogas
Use of Biogas (1 of 3)
Overview • Outsourcing of biogas management at 3 specified sites• To be split into 3 site-specific lots, in order to tailor the solution to site
requirements and to enable a staggered procurement approach
Service Requirements
• Management of all biogas at specified sites in order to generate greatest value from resources
• Comply and operate within statutory legislation and permits• Option for service based contracts for minimum 15 years, VFM considered for
longer• Solution(s) utilised will depend on most economic on £/kWh Biogas basis• For solutions proposed on YW sites:
• Defined site areas will be handed over to the supplier to manage for contract period
• Land will be made available where appropriate as part of contract• Supplier will design, build, operate and maintain all assets (financing
optional), within defined site areas, including any buildings• For gas to grid solutions, supplier will arrange any offtake agreements
Use of Biogas (2 of 3)
Service Parameters
• Operating standards will be set and applied, including Legal, Safety and environmental
• We are interested in the efficient use of biogas such as energy generation, gas to grid, gas to fuel. We encourage the exploration of circular economies and joint ventures
• Contract will require self-reporting of Safety and Operational performance• Handback requirements to be discussed and agreed
Payment Mechanism
• We are looking for a gas offtake agreement where service partners are paid on a £/kWh basis
• YW/downstream supplier will be incentivised not to fail gas quality / quantity commitments
• Likewise the supplier will be incentivised to meet agreed parameters, for instance providing daily minimum capacity
Use of Biogas (3 of 3)
Quality • Parameters to be defined for gas quality• For each technology we will agree a level of output based on the sites capacity
Gas Capacity Standard Gas Capacity• We will provide a commitment as to minimum quantities of gas delivered across
the contract annually• We will provide a site specific window within which sludge levels are expected to
fall as a result of seasonal variation• The supplier will provide a commitment to have available capacity to treat a site
specific window of capacityForecast Gas Increases• We will provide detail of any forecast sludge volume increases over the contract
including long term population growth projection and shorter term quality requirements
Use of Biogas
Bidding thresholds
• Minimum thresholds are likely to be set based upon the financial value of the contract with appropriate levels of security.
• PQQ Looking for experience of working with biogas, safety of biogas, interaction with energy/fuel markets/experience working with EA, regulatory bodies, understanding and delivering innovation
Indicative Procurement Approach
Timeline • Sites expected to be tendered separately to give commercial agility - tbc• First lot targeting Autumn 2018
Use of Biogas
LOT 1 - Knostrop
• Management of all biogas at Knostrop in order to generate greatest value from resources;
• Site with brand new STF• Potential for excess gas/kWhs in times
of peak production, plant maintenance, low energy demand
• Opportunities arising – Leeds Council developing compressed gas and hydrogen fuelling stations on adjoining land
• Estimated annual gas volumes produced: 12,100,000 m3
LOT 2 - Hull
• Management of all biogas at Hull in order to generate greatest value from resources;
• STF commissioned in 2007• Excess gas produced during increased
throughput, • Generation can exceed site electrical
demand, no ability to export electricity to get at least until 2023. This results in load curtailment.
• Site to gain extra sludge capacity
• Estimated annual gas volumes produced: 8,000,000 m3
Use of Biogas
LOT 3 - BBM
• Management of all / unutilised biogas at Blackburn Meadows in order to generate greatest value from resources;
• Large STF with further capacity to unlock
• Single CHP – No resilience in event of maintenance or failure to beneficially utilise gas
• Large volumes of flared gas• Upcoming gas MCPD requirement on
CHP emissions
• Estimated annual gas volumes produced: 6,500,000 m3
D – BAU Procurement
BAU Procurement
Service Contracts End Date
Cake Transport Contract March 2020
Biosolids Recycling Contract October 2019
CHP Maintenance Contract May 2019
Boiler Contract (maintenance and
repair of boiler system)
December 2018
Energy Supply Contract June 2022
Polymer Contract March 2020
DO NOT USE – GUIDELINES ONLY
ProcurementDarrell Griffith & James Carr
Utilities Contracts Regulations 2016
Principles of Procurement (Chapter 4, Regulation 36)
36.—(1) Utilities shall treat economic operators equally and without discrimination and shall act in a transparent and proportionate manner.
(2) The design of the procurement shall not be made with the intention of excluding it from the scope of these Regulations or of artificially narrowing competition.
(3) For that purpose, competition shall be considered to be artificially narrowed where the design of the procurement is made with the intention of unduly favouring or disadvantaging certain economic operators.
Procurement at YWS
• Customers – meet everyone’s needs
• Water Supply – enough safe water
• Environment – protect from pollution
• Transparency – global benchmark
• Bills – affordable as possible
• Health & Safety
• Ethics
• Resilience
• Environment
Health & Safety
Ethics
Resilience
Carbon
Water
Waste
James Carr
Tender Registration & Participation
Tender Process - Suppliers Perspective
PIN (optional)
Achilles or OJEU Notice
Supplier Registration
(Ariba)
RFI
(formerly Qualification
Stage / Selection
stage)
RFICompliance
RFP
(formerly Award
Stage or ITT)
Alcatel (mandatory
standstill period)
Contract Signature
12 Month Process
Rules of Engagement
Bidder Agreement and NDA:
• The Bidding Entity/Joint Ventures
• Language & Document Format
• Confidentiality
• Submission Accuracy & Completeness
• Communication & Clarification
• Collusion, Fair Conduct
• Cost of Tendering & Termination
Financial &
Insurance
Health &
Safety
Information
SecurityHuman Rights
Environmental
Sustainability
Evaluation Criteria – Baseline Requirements
RFI
Regulatory
& Conflict
of Interest
DO NOT USE – GUIDELINES ONLY
Summary and ReflectionsBen Roche & Thomas Hall
DO NOT USE – GUIDELINES ONLY
Open Forum DiscussionsThickening & Dewatering
• Boardroom, 2nd floor
• Blue dots
Provision of efficient sludge treatment capacity
• Ocean Room, ground floor
• Red dots
Use of Biogas
• Cedar Room, 1st floor (here)
• Green dots
DO NOT USE – GUIDELINES ONLY
Lunch
Back at 13:30