The Scottish Government has gone out to tender with a massive contract worth a potential £350 million for the supply of mains water and waste water services to over 100+ public sector organisations across Scotland.
Organisations on the wide-ranging list include all the Scottish Councils, NHS hospitals, higher educational institutions, prisons, and police authorities. The contract covers the supply of mains water and waste water services to approximately 15 000 sites and 27 000 SPIDS within the Scottish public sector and third sector organisations.
The Scottish Government is looking to appoint a maximum of 2 suppliers to the framework agreement, which will run for 3 years.
Estimated total value of purchases for the entire duration of the framework agreement is in a range between £280million and £350 million.
The contract, which includes a further 12 month extension option until 31.3.2019, is divided into 2 lots:
Lot 1: Supply of mains water and waste water services to Local Authorities, Registered Social Landlords and Associated Bodies e.g Leisure Trusts.
Lot 2: Health Bodies, Further and Higher Education institutions, Central Government Departments including Police and Fire, The Scottish Parliament, Departments of UK Government Facilities operating in Scotland, Third Sector Organisations and any other Public Bodies.
The contract will be an interesting test of how the upcoming competitive non-household retail market in England in 2017 is likely to operate. A number of the water companies have already put arrangements in place to supply water and/or sewerage services outside their existing areas of supply.
United Utilities has already become the second largest water retailer in the competitive Scottish market since getting a Scottish licence in 2012, according to its financial results statement for 2013/14 published in May.
The water company won 150 business customers covering 2,000 sites, giving it the second largest market share to the incumbent Business Stream, currently the largest supplier of non-household water and waste water services in Scotland.
According to Business Stream, more than £100 million has been cut from the water bills of business and public sector organisations by Business Stream in Scotland since the introduction of retail competition in April 2008.
Click here to access the tender document.
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