W722 - Longbridge Weir Hydroelectric Plant Maintenance

Award outcome

Description

The Longbridge Weir Hydropower House was constructed in 2011 to generate renewable electricity, primarily for the Council House. Derwent Hydroelectric Power Ltd was the original designer and constructor of the installation and has provided operation and maintenance services since commissioning. The plant has now been operational for approximately 14 years. As it approaches the later stages of its asset lifecycle, several major components are at increased risk of failure due to age and will require replacement within the next five years. Ongoing operation and maintenance therefore require specialist technical knowledge of the original design and construction of the installation. Accordingly, a direct award is permitted under the Procurement Act 2023, Schedule 5, item 6(a), as competition is absent for technical reasons and only a particular supplier can supply the required services. The market for contractors capable of maintaining and upgrading a small-scale hydropower installation of this nature is extremely limited. The plant requires a cost-effective 24-hour emergency response capability, which most specialist providers are unable to deliver. Derwent Hydroelectric Power Ltd is locally based, enabling this requirement to be met. As the original constructor, the supplier also has detailed and unique knowledge of the plant, presenting a significant technical barrier to alternative providers. The small scale of the installation further reduces commercial viability for other contractors. These market conditions are not expected to change.

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