Supply of Liquefied Petroleum Gas (LPG)– CFT212528
USER’S PROTOCOL
This contract isCollaboration Energy and Fleet
managed by: Central Procurement Directorate
Supplies and Services Division
303 Airport Road West
BELFAST
BT3 9ED
Tel No: (028) 9081 6406
Email:
- Background
CPD Supplies and Services division have established a framework agreement for the supply of Liquefied Petroleum Gas (LPG). This new Framework will run for a period of 2 years and 5 months from 01 March 2016 to 31 July 2018 with no options to extend.
- Services available
The contract is for the supply of LPG to a number of public sector buildings. A copy of the specification is attached at Appendix A.
On award of the framework each site will initially continue to take supply of LPG from its existing contractor, this reflects the commercial position where existing contractors will not permit another to fill its tanks with LPG.
Participants will examine the cost to receive the supplies and associated services from each of the framework operators on a site by site basis, the site-specific cost shall be calculated as:
(Margin x Volume) + (Tank rental) where:
Margin = Framework operator’s £ margin per litre of LPG;
Volume = Consumption (Litres) of LPG projected over the contract period per site; &
Tank Rental = £ Tank rental charges (to include all Contractor installation costs) for the contract period.
Note: where a particular site has more than one tank, the rental charge for each tank per annum will be added together and the above evaluation criteria will be applied.
3. On-boarding of New Users
New users of the arrangement are required to complete the “Contract LPG Advice Account Setup form” which can be downloaded from the CPD website. This form requires a number of elements to be completed;
- The bank details of the client so that the supplier can establish a credit account on their behalf;
- Confirmation of how the client will pay invoices received from the supplier;and
- A non-disclosure agreement which must be completed so that the supplier’s rates can be issued to the requestor
Please note this information is commercially sensitive and must be treated as such by the recipient.
When all elements of the form are completed it is then to be submitted to CPD at the address
4. Business case requirement
If the Most Economically Advantageous Tender is from the existing contractor then that contractor will continue to supply for the period of the framework.
If the Most Economically Advantageous Tender is from another tenderer then the Participant will prepare a proportionate business case to determine whether to switch to a Replacement contractor. The proportionate business case will consider, but not be limited to, an analysis of the cost to switch to the Replacement contractor. The proportionate business case cost analysis will include, but not be limited to:
- The potential Replacement contractor’s LPG margin costs derived from the tender;
- The costs to remove any existing tanks and pipework;
- The costs to prepare the site for the replacement supply;
- The potential Replacement contractor’s tank rental charges; and
- The ability of the Client to afford to switch considering capital and revenue resources available.
5. Contract Management
The operational/day-to-day management of the services delivered in conjunction with this Contract will be the responsibility of those person(s) to whom the services are being delivered.Contract Management shall be carried out in accordance with CPD Guidance PGN 01/12.
The Contract Monitoring arrangements for this contract are;
6 month review after initial Award;
12 months after Award;
24 months after Award
CPD role
CPD Energy and Fleet team will issue monitoring forms to all contract users in line with the timescales above in order to monitor contractor performance. Where significant issues in terms of supplier performance are experienced, the client(s) should inform CPD with supporting evidence. CPD will then liaise with the supplier to determine any possible resolution.
Quarterly price reviews will be submitted to the Energy and Fleet team within CPD. These price reviews will be in line with the price published on Platts Northwest Europe FOB Seagoing Propane (PMABB00). CPD will then forward this information onto all users for their own records.
6. Management Information – Non AccountNI users
Organisations that do not use AccountNI will be required to provide CPD upon request details of their organisations spend via the contract. This information is to include the volume of each service element provided by the supplier. This data will be used to inform any further tender exercise for these services.
7. Contract Number – AccountNI
AccountNI users should process Calor Gas invoices using oracle contract number 2100128159.
Appendix A
BULK GAS SPECIFICATION
Scope
The Contractor shall supply Liquefied Petroleum Gas to the locations detailed at Appendix A.
This list may be amended by the Client during the framework period, to include any of the Public Bodies listed at:
Framework Duration
Tenderers should note the Framework is anticipated to commence on the 1st March 2016 and will run until the 31 July 2018 with a call-off arrangement for the 2 years and 5 months period.
Standards
Liquefied Petroleum Gas must conform to BS 4250: 1997 or its equivalent International or European Standard.
The Contractor must ensure full compliance with the Pressure Systems and Transportable Gas Container Regulations (Northern Ireland) 1991 amended 1997 and 2002 and any subsequent amendments.
The Contractor must ensure full compliance with the Carriage of Dangerous Goods and Use of Transportable Pressure Equipment (Amendment) Regulations (NI) 2011
Delivery
Estimated annual gas consumption is indicated at Appendix A. These estimates in no way constitute a guaranteed annual delivery requirement and could vary at each site.
Appendix A indicates the type of delivery (top up or request for supply) required at each site.
Top Up
Supply of bulk gas will be supplied on a “top up” basis at the sites indicated. The Contractor shall optimise logistics to minimise distance travelled.
Request for Supply
Those sites indicated which request deliveries will contact the Contractor to arrange for delivery to be made. Requests for supplies are to be delivered within 48 hours or 6 hours if the location is in an emergency run-out situation. Each site will, as far as is practical, seek to place orders for LPG delivery only when there is sufficient storage space available to maximize the delivered load and orders will be for a minimum of 400 litres.
Invoicing
The Contractor shall agree an invoicing format with each contract user. The price paid will be at the contracted price at the time of order.
The invoice shall provide, at a minimum a breakdown, of costs as follows:
- Volume of LPG delivered
- Contracted LPG price
- Margin on Platts
- Climate Change Levy (if applicable)
- Total Cost
For tank rental, the Contractor shall provide an annual invoice for each site. The annual price will be the contracted price stated as part of the tender.
When calculating the quarterly LPG price the following must be used:
- The previous quarter’s monthly average published price published on Platts Northwest Europe FOB Seagoing Propane (PMABB00).
- The dollar price converted to sterling using the published rate at approximately 7.30am from the following web link (AIB Customer Treasury Services – Morning Comment) on first working date of each quarter.
- The conversion from tonnes into litres using the 1968.5 conversion ratio to derive a pence per litre figure.
Management Information
The Contractor shall provide quarterly usage data in excel format which includes the following information in relation to this contract:
- Site Address
- Delivery period
- Total delivery quantity (litres)
- Total Cost
Installation and Maintenance Works
New installations (including existing sites which change suppliers) which require the Client to prepare a new site for the bulk tank will be subject to Client approval and approval of a business case to fund any necessary preparation of a new site.
Sites conditionally identified to be switched to a replacement Contractor will be subject to an Outline Business Case (OBC). Approval to switch a site to a replacement Contractor will only be given if the OBC demonstrates that there is a commercial benefit to the Client. Where an OBC is not approved the Client will not switch Contractor.
If a new supply site is to be added, the Contractor in consultation with the site’s Authorised Representative will agree the most suitable location for equipment to be installed.
For those sites which switch supply to a replacement Contractor, the replacement Contractor shall coordinate the removal of the existing tank and pipework and installation of the replacement tank and pipework to minimise disruption to the Client. The Contractor must provide the Client with an implementation plan for any approved site switchovers.
The Contractor shall complete all installation work in line with the implementation plan.
The Contractor must ensure that installation and maintenance work on gas storage containers, pipelines, fitting and any associated equipment is only be performed by Gas Safe registered staff. Gas Safe registration details shall be produced on demand.
The Contractor must carry out all necessary preventative and remedial maintenance work to its assets installed at each site.
Should a fault with the gas supply/storage be reported, the Contractor shall attend onsite to fix the fault within 2 hours of a fault being reported.
On completion of all installation and maintenance work, the Contractor must provide a certificate of completion to the Authorised Representative of the Client at each site.
Security Clearance
For the secure Police Service of Northern Ireland and Northern Ireland Prison Service sites, the Contractor shall ensure that only personnel that have been security cleared to Counter Terrorist Check (CTC) level deliver LPG or carry out work to these sites.
Partial Termination of Contract
The Client may partially terminate supply of LPG to any site by giving 3 months notice to the Contractor. The Contractor shall continue to supply all other sites. The Contractor shall co-ordinate the disconnection and removal of tanks and associated pipework ensuring their removal within 1 month of the end of the 3 month notice period and will provide a credit for any remaining gas in the tank.
The Contractor shall bear the cost of removing all Contractor deployed pipework and tanks following disconnection.
Contract End – Continuity of Supply
At least 12 months before the end of the framework, the Contractor shall provide information and assistance to the Client to enable it to re-procure the supplies and services, the Contractor shall provide the following information within 20 days of a request from the Client:
- Location of each site;
- Tank capacity;
- Annual consumption of LPG; and
- Number of deliveries per annum.
At the end of the framework period, should the Contractor be unsuccessful in any replacement contracts for the supply of LPG, they will be required at no expense to remove the tanks and valve assembly.
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LPG Protocol V1This document is uncontrolled if printed