W728 - Replacement Oil Tank at East Glamorgan Hospital

Award outcome

Description

NWSSP on behalf of Cwm Taf Morgannwg University Health Board intends to award a contract to LCM Environmental Services Ltd for the cleaning and decommissioning of existing oil tanks, removal and disposal of hazardous waste, and the preparation and installation of a new self‑bunded oil tank and associated pipework at East Glamorgan Hospital. This requirement has arisen as a matter of urgency due to the failure and significant corrosion of the existing oil tank at East Glamorgan Laundry. The tank provides critical resilience for the site’s steam boilers. In the event of a gas supply interruption, the boilers must be capable of operating on oil. Without this backup provision, there is a substantial risk to continuity of linen services, which are essential to the operation of hospitals and healthcare facilities across the organisation. Due to the urgent nature of the requirement and the operational risk associated with any delay, there is insufficient time to undertake a full competitive procurement exercise. LCM Environmental Services Ltd are the incumbent maintenance contractor, are fully familiar with the site and infrastructure, and are therefore best placed to mobilise immediately and deliver the works within the required timeframe. This requirement has been assessed against available procurement routes. Due to the specialist nature of the works, the urgency of the requirement, and the need to ensure compatibility with existing fuel infrastructure and systems, undertaking an open or competitive tender exercise has been deemed impractical. Following assessment, a direct award route has been selected under the Procurement Act 2023 Schedule 5, Section 7 (2) The public contract concerns the supply of goods, services or works by the existing supplier which are intended as an extension to, or partial replacement of, existing goods, services or works in circumstances where -  (a) a change in supplier would result in the contracting authority receiving goods, services or works that are different from, or incompatible with, the existing goods, services or works, and   (b) the difference or incompatibility would result in disproportionate technical difficulties in operation or maintenance. On this basis, a direct award to LCM Environmental Services Ltd is considered to be justified, proportionate, and necessary to mitigate critical operational risk.

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