Shetland Islands Council

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 Page 1 of 16

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 Council s 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 Page 2 of 16

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 Owner s 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. Page 3 of 16

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). Page 4 of 16

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 Council s 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 Tenderer s Responsibilities Page 5 of 16

Although endeavours have been made to give Tenderers an accurate description of the Council s 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 Tenderer s failure to make a proper and correct assessment of the Council s requirements. Accordingly, where any Tenderer has any doubts concerning specification requirements for the PROVISION OF BARE BOAT TUG CHARTER or for that matter anything else concerning the proposed Contract, that party should address any queries to the named contact person specified in paragraph 2.2.1 below in the manner stated therein. 1.11 Freedom of Information (Scotland) Act 2002 Tenderers are referred to the Freedom of Information (Scotland) Act 2002 ( FOISA ), the terms of which apply to the Council. The Council is obliged under FOISA, subject to certain exemptions, to make information which it holds available to a person on request. The Tenderer recognises the Council s duties under FOISA. 2. INSTRUCTIONS TO TENDERERS 2.1 Language All documentation submitted by each Tenderer as part of that party s tender submission is to be prepared in English. 2.2 Queries/Requests for Information 2.2.1 Any queries or requests for information concerning the Tender Documentation or for that matter anything else concerning the proposed Contract are to be addressed in writing to:- Procurement Manager - (Attn: Colin Black) Corporate Services Department Shetland Islands Council Capital Programme Service 8 North Ness Business Park Lerwick Shetland ZE1 0LZ Fax No: 01595 744667 e-mail: contract.admin@shetland.gov.uk 2.2.2 All queries/requests for information of the kind referred to in 2.2.1 above must be made, in writing, no later than 10 days before the closing date fixed for submission or lodgement of tenders. 2.3 General Instructions 2.3.1 Tender documents issued by the Council must not be passed on to any third party without the express permission of the Council except in circumstances where this may be necessary to obtain any insurance or other quotations required for the preparation of a tender. Page 6 of 16

2.3.2 Offers require to be submitted using the official tender documents provided, which tender documents are not to be amended or supplemented in any way or by any means whatsoever other than in accordance with the following instructions. All pages of those tender documents require to be returned (i.e. none of them should be omitted). 2.3.3 All entries (e.g., charges or other sums) and other information to be inserted in the tender documents supplied, require to be made in ink or be typewritten or printed. 2.3.4 Offers must be priced in pounds sterling ( ) on the basis specified in paragraph 1.5 above. 2.3.5 All prices to be quoted by each Tenderer shall be specified net of Value Added Tax. 2.3.6 There is a requirement for the various items of tender documentation enclosed to be physically signed by an authorised signatory of a Tenderer. In the event that the signatory who is to sign the tender documents on behalf of any Tenderer is not a Company Director or a Partner of a Firm, then that Tenderer is required to enclose with that party s tender submission a letter or other satisfactory evidence which demonstrates the authority of the authorised signatory to bind the Tenderer to the offer(s) being made in that party s name. 2.4 Completion of Tender Documentation 2.4.1 Schedule 1: Cost Schedule for each Vessel Proposed Complete a separate copy of Schedule 1 for each vessel proposed as follows:- Insert price, and where relevant number of days, information in the Schedule, as per each described cost heading. If you are not offering any of the services or option in the Schedule write N/A next to that cost heading. Tenderers should clearly identify the name of each vessel proposed and indicate whether it is being offered to meet the timescale requirements of Lot 1 March 2017 to March 2020 or Lot 2, March 2018 to March 2021, or can be considered for both Lots. 2.4.2 Schedule 2: Technical Specification for each Vessel Proposed Complete a separate copy of Schedule 1 for each vessel proposed as follows:- Provide relevant technical specification information that describes how that vessel meets the criteria set out in Appendix 1 Vessel Requirements Specification. Tenderer s should clearly identify the name of each vessel proposed and indicate whether it is being offered to meet the timescale requirements of Lot 1 March 2017 to March 2020 or Lot 2, March 2018 to March 2021, or can be considered for both Lots. 2.443 Form of Tender Page 7 of 16

Complete the Form of Tender as follows:- Insert the number(s) of the Lot or Lots for which the Tenderer is submitting a tender in the space provided for this purpose in the first paragraph of the Form of Tender; and Fully complete, sign, witness and date the signing docket on the second page. 2.4.4 Certificate of Non-Collusion Complete the Certificate of Non-Collusion by fully completing, signing, witnessing and dating the docket. 2.4.5 European Single Procurement Document (ESPD) Scotland You are required to complete the European Single Procurement Document (ESPD) Scotland as attached at Appendix 4. 2.5 Submission of Tenders Before proceeding to prepare the Tender submission, Tenderers should first check to ascertain that all of the items specified in 2.4 above have been received, which items together constitute the Invitation to Tender, and that they are complete. Tenderers should then give careful consideration to the terms of the enclosed Information for and Instructions to Tenderers, as a failure to comply with any one or more of the instructions contained in that document may result in the Tender submission not being considered for acceptance by the Council. In accordance with the instructions contained in the Information for and Instructions to Tenderers, your duly completed Tender submission should be made via the Postbox on Public Contracts Scotland web portal as detailed in the section Information for and Instructions to Tenderers FOR RECEIPT BY NO LATER THAN 12:00 BST Monday 17 th OCTOBER 2016. Please note you must register your business on the Public Contracts Scotland web portal as part of the procurement process. 2.6 Form of Response Tenderers are required to prepare and submit their tender submissions in the form and manner prescribed in this document. A failure to do so may, at the sole discretion of the Council, result in that party s Tender not being considered for acceptance by the Council. 2.7 Mandatory Requirements All of the instructions contained in this document are mandatory and a failure by a Tenderer to comply fully with them may, at the sole discretion of the Council, result in that party s Tender not being considered for acceptance by the Council. 2.8 Equal Opportunities Page 8 of 16

The Tenderer must, at all times, comply with all legislation and regulations relating to Equal Opportunities. 2.9 Financial Assessment Register Please note that it is an essential requirement of the contract that Tenderers satisfy the conditions of the Council s Financial Assessment Register. No contract can be awarded to a tenderer failing to satisfy that requirement. 2.10 Freedom of Information (Scotland) Act 2002 The Vessel Owners are referred to the Freedom of Information (Scotland) Act 2002 ( FOISA ), the terms of which apply to the Council. The Council is obliged under FOISA, subject to certain exemptions, to make information which it holds available to a person on request. The Vessel Owners recognises the Council s duties under FOISA. Page 9 of 16

SCHEDULE 1: COST SCHEDULE FOR EACH VESSEL PROPOSED Costs should be Net of Value Added Tax throughout this schedule. Name of Vessel Proposed... Lot 1 (17/20) or Lot 2 (18/21) or Both... Cost Per Day Number of Days Total 1 Charter Cost 365 x 3 Years 2 Hand-over 3 Familiarisation 4 Training 5 Any Other one off Costs 6 Any Other recurring Costs 7 End of Year 1 Purchase Cost 8 End of Year 2 Purchase Cost 9 End of Year 3 Purchase Cost 10 Estimated Three Year Fuel Running Costs 11 Estimated Three Year Maintenance Costs Page 10 of 16

Item 1 Charter Cost Proposed daily bare boat charter day rate for this vessel. 2 Handover Proposed number of days services to conduct handover of vessel to the Council. 3 Familiarisation Proposed number of days services to conduct familiarisation of the vessel with 9 four man crews of deck and engineering staff. 4 Training Proposed number of days in depth training to support the conversion of 9 four man crews of deck and engineering staff from current Voith technology vessels to proposed vessel. 5 Any other one of costs of acquisition charged by the supplier of the vessel 6 Any other recurring costs charged by the supplier of the vessel 7 Purchase cost for this vessel at the end of 1 year charter 8 Purchase cost for this vessel at the end of 2 year charter 9 Purchase cost for this vessel at the end of 3 year charter 10 Estimate of 3 year fuel and other consumable running costs for this vessel assuming 5,000 hours annual running time. 11 Estimate of 3 year anticipated maintenance costs for this vessel including any special survey and dry dock requirements. Further Information and cross reference to supporting technical information where relevant. Page 11 of 16

SCHEDULE 2: TECHNICAL SPECIFICATION FOR EACH VESSEL PROPOSED Tenderers must supply comprehensive technical specification documentation (in English) demonstrating how each vessel proposed meets the Council s requirements as set out in Appendix 1 Vessel Technical Requirements. This documentation can either be supplied in electronic format or paper based, or a combination of the two. All documentation should clearly identify which vessel it relates to. Page 12 of 16

FORM OF TENDER To: SHETLAND ISLANDS COUNCIL, 8 North Ness Business Park, Lerwick, Shetland, ZE1 0LZ ( the Council ). We, the Vessel Owner named below ( the Vessel Owner"), having scrutinised the Tender documents comprising Information for and Instructions to Tenderers, this Form of Tender, Schedules 1 to 4 inclusive and the Certificate of Non-Collusion ("the Tender Documents") and issued under cover of the Council's letter dated 12 th September 2016 hereby offer to enter into a Contract for the supply of Bare Boat Charter Tug(s) LOT(S) Lot Number Lot Detail Lot 1 Supply of Bare Boat Charter Tug(s) March 2017 Lot 2 Supply of Bare Boat Charter Tug(s) March 2018 Yes/No and that all in accordance with the whole terms and conditions specified or referred to in the said Tender Documents. This Form of Tender is:- Dated this.. day of. 2016 and signed by Full name of signatory in capital letters... Position/ job title... for and on behalf of:- Vessel Owners Full Name:... Vessel Owners Address:...... Fax No:... Telephone No:... Signed before this witness:..... Page 13 of 16

Full name of witness in capital letters:..... Address of witness:......... Occupation of witness:...... For Official Use Only Received by:- S.I.C. Official ( ) Dated / / S.I.C. Official S.I.C. Official Page 14 of 16

PUBLIC SERVICE CONTRACT: PROVISION OF BARE BOAT TUG CHARTER CERTIFICATE OF NON-COLLUSION Certificate of Non-Collusion PROVISION OF BARE BOAT CHARTER TUG 1. We, the Tenderer designated below, certify that the Tender to which this Certificate relates has been made in good faith, and that we have not fixed or adjusted any rates specified in or proposed for the said Tender by or under or in accordance with any agreement or arrangement with any other person. We also certify that we have not done anything that constitutes an offence in terms of the Bribery Act 2010 and we undertake that we will not before the award of the above Contract:- (i) (a) Communicate to any person the said rates, except where the disclosure, in confidence, of the said rates has been necessary to obtain insurance premiums or other quotations required for the preparation of the said Tender, or (b) Enter into any agreement or arrangement with any other person that they shall refrain from tendering, that they shall withdraw any tender once offered or vary the rates or any proposed rates for any tender to be submitted; or (ii) Pay, give or offer to pay or give any sum of money or other valuable consideration directly or indirectly to any person for doing or having done or causing or having caused to be done in relation to any other tender or proposed tender for the above Contract, any act or thing of the sort described at (i) (a) or (b) above. 2. In this Certificate, the word person includes any natural or legal person (including any body or association, corporate or unincorporated) and the words any agreement or arrangement includes any transaction, formal or informal and whether legally binding or not. Dated this... day of... 2016 and signed by... Page 15 of 16

Full name of signatory in capital letters... Position/job title... I hereby certify the matters contained in this Non-Collusion Certificate for and on behalf of:- Tenderer s Full Name Tenderer s Address...... Telephone No. Signed before this witness (signed)...... Full name of witness in capital letters..... Address of witness............ Occupation of witness.... Page 16 of 16