PUBLIC SUPPLY CONTRACT: PROVISION OF BARE BOAT CHARTER TUG(S)

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Shetland Islands Council

Invitation to Tender

PUBLIC SUPPLY CONTRACT:

PROVISION OF BARE BOAT CHARTER TUG(S)

SHETLAND ISLANDS COUNCIL Ports and Harbours Service

Infrastructure Services Department Port Administration Building

Sella Ness Sullom Voe

Shetland ZE2 9QR

Tel: 01806 244200 Fax: 01806 244232

PUBLIC SUPPLY CONTRACT: PROVISION OF BARE BOAT CHARTER TUG(S)

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Contents

1. Information for and Instructions to Tenderers

2. Schedule 1: Cost Schedule for each Vessel Proposed

3. Schedule 2: Technical Specification for each Vessel Proposed

4. Form of Tender

5. Certificate of Non-Collusion

6. Appendix 1: Vessel Requirement Specification

7. Appendix 2: Confirmation that each Vessel proposed meets the Councils Essential Requirements.

8. Appendix 3: European Single Procurement Document (ESPD)

Scotland. 9. Appendix 4: Standard BIMCO Bare Boat Charter Document

Barecon 2001

10. Appendix 5: Qualitative Selection and Tender Evaluation and Scoring Methodology

PUBLIC SUPPLY CONTRACT: PROVISION OF BARE BOAT CHARTER TUG(S)

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INFORMATION FOR AND INSTRUCTIONS TO TENDERERS

1. INFORMATION FOR TENDERERS 1.1 Shetland Islands Council

Shetland Islands Council (the Council) is a Local Authority providing a range of amenity and community services to a population of approximately 23,000 inhabitants. Services include the operation of Ports and Harbours around Shetland, most significantly the Port of Sullom Voe which services the Sullom Voe Oil Terminal. Towage Operations are provided at the Port of Sullom Voe by a fleet of Council owned and operated tugs catering for Oil Tankers up to ULCC/VLCC but more typically Aframax / Suezmax. Towage operations are a combination of escort and harbour berthing manoeuvre activities. The tugs being sought through this procurement will be expected to primarily undertake harbour berthing manoeuvre operations but it is desirable that they should also be capable of undertaking escort duties if required.

1.2 Contract Type

The type of arrangement is a supply contract for the provision of one or two Tugs of suitable technical specification and class to meet the needs of the Council in Towage operations. The contract will be for a period of 36 months initially (anticipated to commence in March 2017 for the first Tug (Lot 1), March 2018 for the second (Lot 2). The contract will also include extension options in favour of the Council for up to an additional two 12 month periods for each tug. The Council also requires 1, 2 and 3 year purchase options for each of the contracted vessels at the Councils discretion to be available within the contract. Contracts will be concluded in accordance with BIMCO Barecon 2001 standard terms with modifications. Sample BIMCO Barecon 2001 standard charter document attached as Appendix 4. Technical specification of the required Tug(s) is set out in Appendix 1 Vessel Requirements Specification. The Council may at any time up to formal award require that a Vessel Owner which is a subsidiary of another company must provide a parent company guarantee from its ultimate holding company guaranteeing the Vessel Owners obligations under the Contract. The Vessel Owners shall provide the Council with details of its corporate structure. The procurement is being carried out in accordance with the Utilities Contracts (Scotland) Regulations 2016 (2016/49) under the negotiated procedure with call for competition. The objective and non-discriminatory criteria or rules that the Council intends to apply to limit the number of candidates meeting the selection criteria that the Council will invite to tender is: set out in the European Standard Procurement Document and passing all questions in Appendix 2 Confirmation of Essential Requirements Questionnaire.

PUBLIC SUPPLY CONTRACT: PROVISION OF BARE BOAT CHARTER TUG(S)

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In order to proceed to further stages of tender evaluation confirmation must be given that the vessel(s) proposed meets all these essential requirements. Failure to answer one or more questions or answering no to one or more questions will result in the vessel being eliminated from the tendering process. Tenders should also indicate where further explanatory information about how the vessel meets each criteria by providing a cross reference to the relevant section of the technical specification for that vessel supplied as part of the tender. This procedure will allow a maximum of five suppliers to proceed to the negotiation stage. Should further qualitative selection be required to reduce the number of competent tenders which meet all essential requirements to five then further evaluation of tenders will be conducted to determine which proposals are most economically advantageous to the Council on the basis of the following cost and quality award criteria:

Charter Rate;

Optional Purchase Cost;

Operating Costs;

Quality and fit with technical requirements;

Operability and maintenance back-up.

Once it has been confirmed that tenders meet essential requirements, and if necessary qualitative selection has identified the five most economically advantageous proposals, then further clarification, evaluation and negotiation will be carried out including inspection of proposed vessel(s). Further details of how the Council will evaluate and score tenders is set out in Appendix 5: Qualitative Selection and Tender Evaluation and Scoring Methodology.

1.3 Timetable of Events

Expected Dates Event

Monday October 17 2016 at 12:00 BST Closing date and time for submission of tenders

Monday October 24 2016 Qualitative Selection

November - December 2016 Further Clarification and Information Gathering

Monday 16 January 2017 Award of Contract(s)

Thursday 26 January 2017 Mandatory Standstill Period

March 2017 Start of Contract for Lot 1

March 2018 Start of Contract for Lot 2

The above date for Award of Contract and other milestones are indicative only. The

closing date and time for submission of tenders is mandatory.

The Standstill Period is the period following the date the award decision is notified to all Tenderers and candidates concerned.

1.4 Tenders Required

Shetland Islands Council require firm priced tenders in pounds sterling ()(net of VAT), which provide a price for the provision of Bare Boat Charter Tug(s).

PUBLIC SUPPLY CONTRACT: PROVISION OF BARE BOAT CHARTER TUG(S)

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Tenderers are at liberty to tender for the supply of one or both Tugs, Lots 1 and 2.

Tenders may propose a number of vessels for each Lot. They must complete a copy of Schedules 1, 2 and appendix 2 for each vessel proposed, clearly identifying it by vessel name and indicating which Lot (or both) it is being proposed for.

1.5 Late/Faxed/e-mailed Tenders

Any tender received after the closing time and date fixed for the submission or lodgement of tenders or delivered to an incorrect address shall not be considered for acceptance by the Council and shall be returned to the sender.

1.6 Acceptance of Tenders/ Contract Award Criteria

The Council reserves the right not to accept any tender at all for either Lot. If a Contract is to be awarded, this will be to the Tenderer for each Lot who have submitted the offer(s) most economically advantageous to the Council on the basis of the following cost and quality award criteria:

Charter Rate;

Optional Purchase Cost;

Operating and any other Costs;

Quality and fit with technical requirements;

Operability and maintenance back-up.

Further details of how the Council will evaluate and score tenders is set out in Appendix 5: Qualitative Selection and Tender Evaluation and Scoring Methodology.

1.7 Custody and Opening of Tenders In accordance with the Councils Contract Standing Orders, Tenders duly made shall remain unopened until the time appointed for their opening and shall be opened in the presence of at least three persons, one of whom must be entirely independent of the exercise.

Representatives of Tenderers are not permitted to be present at the opening of Tenders.

1.8 Tendering Costs

The Council will not be responsible for nor will it pay or reimburse any costs, expenses or losses incurred in the preparation and submission of any tender.

1.9 Bribery, Canvassing, Collusion, etc.

Any canvassing or collusion by a Tenderer or involvement by such a person in any corrupt or illegal practices, including bribery and anything considered to be an offence in terms of the Bribery Act 2010, shall result in that Tenderer being forthwith excluded from the tendering process and any Tender submitted by that party not being considered further by the Council.

1.10 Tenderers Responsibilities

PUBLIC SUPPLY CONTRACT: PROVISION OF BARE BOAT CHARTER TUG(S)

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Although endeavours have been made to give Tenderers an accurate description of the Councils requirements in relation to the proposed Contract, Tenderers should form their own conclusions about the methods and resources needed to meet those requirements. The Council cannot accept any responsibility or make allowances for a Tenderers failure to make a proper and correct assessment of the Councils requirements. Accordingly, where any Tenderer has any doubts concerning specification requirements for the PROVISION OF BARE BOAT TUG CHARTER or for th