Climate Innovation Pull Facility (CIPF) - Facility Manager - Invitation to Submit Initial Tenders

Concepts

• foreign economic aid
• potential climate pull projects
• potential pull projects
• pull project
• pull projects
• climate pull projects
• approved pull projects
• innovation projects
• climate change mitigation solutions
• climate mitigation solutions

Location

United Kingdom:

Description

The UK Department of Energy Security and Net Zero is procuring a supplier to manage a new facility - the Climate Innovation Pull Facility (CIPF). Through pull finance, this facility will support innovation, scale up and market building for climate change mitigation solutions for developing country contexts, focusing on innovative clean energy technologies and business models in a small number of specific applications/sectors, where the evidence shows support is most needed. In public innovation financing, "pull mechanisms" create incentives for innovators and other actors by creating viable market demand. They seek to reduce viability gaps and induce innovation by signalling demand for solutions to specific problems. Mechanisms often cited include Advanced Market Commitments, Results or Outcomes Based Financing, Prizes/Challenges, innovation bulk procurements, Contracts for Difference, among others. By contrast, much innovation support has to date utilised "push mechanisms" directly subsidising up-front R&D costs. In terms of climate mitigation solutions, the CIPF will support the development of innovation projects aligned to Ayrton Fund themes: industrial decarbonisation, sustainable cooling, smart energy systems and storage and clean transport Further details of Ayrton Fund thematic challenges are set out on gov.uk. The procurement of this requirement will be in two parts: i) A contract for a Facility Manager to manage the programme and identify, incubate, commission and oversee 6-10 climate pull projects of £10m - £50m each. This contract will also cover programme monitoring and learning. ii) A separate contract for an Independent Evaluator of the programme, who will conduct a mid-term and end-of-term evaluation of the programme’s achievement of its development objectives, theory of change and value for money. This procurement is subject to a separate procurement procedure. The procurement for the Facility Manager is the focus of this notice and will be run as a competitive procedure with negotiation. This contract notice is to invite initial tenders from the market. Further details of the planned procurement process are provided in the procurement documents available on the DESNZ procurement portal at the above link. The initial contract value is £183m over 5.5 years with options to extend by up to £317m and up to 3 additional years. Of the £183m initial contract value, at least £150m of this will be allocated for climate pull projects, the majority of which will be grant funding.

Total Quantity or Scope

The Facility Manager (FM)for CIPF will deliver the following services: - An Implementation Period of 6 months from the Effective Date to set up the contract and develop programme level strategies and workplans. The most significant of these is the CIPF Portfolio Strategy which will detail the how the pull project portfolio will be identified and managed by the FM. - A Pull Project Identification Period which runs from Month 7 to the end of Month 21 of the Contract. During this period the FM will work to identify and filter potential climate Pull Projects to deliver a recommendation to DESNZ for approval of diverse portfolio of climate pull projects to receive grant funding. The portfolio will made up of 6-10 projects valued between £10m and £45m in terms of the CIPF contribution. Detailed portfolio and project characteristics are provided in the Statement of Requirements. Project selection will follow a pre-determined process with projects maturing through a 3-stage selection process, with the DESNZ Steering Board approving at each stage including at the final Green Light decision point where funding is awarded. - Pull project incubation support of up to £500,000 per project before the final approval stage. During project identification, the FM will deliver technical support to potential Pull Projects to support their readiness for approval. This may be delivered directly by the FM, subcontracted by the FM or provided as grant funding to the potential Pull Project depending on the project needs. - Pull Project management where the FM will provide management and oversight of approved Pull Projects. This may include in-country presence and support with stakeholder engagement including FCDO teams at Post (High Commissions and Embassies) and local government stakeholders among others. - Overall programme management, governance, monitoring and impact reporting for the programme. - Knowledge management, learning and communications services to support the development and sharing of lessons learned with wider stakeholders.

Renewal Options

The period of the agreement for the Climate Innovation Pull Facility (CIPF) Facility Manager is an initial term of 5.5 years (66 months), with extension options for a further 3 years (36 months) or any portion thereof. Full details of all potential extension and modification options can be found in the procurement documents, specifically in Annex 1 of Contract Schedule 31 (Buyer Specific Terms).

CPV Codes

• 75211200 - Foreign economic-aid-related services

Indicators

• This is a one-off contract (no recurrence)
• Options are available.
• Renewals are not available.
• Professional qualifications are sought.
• Staff qualifications are relevant.

Other Information

** PREVIEW NOTICE, please check Find a Tender for full details. ** Tenderers wishing to be considered must register their expression of interest and submit an Initial Tender through the department’s procurement portal at the above link. See procurement documents for more information. All discussions, meetings, and communications will be conducted in English. The contract will be subject to the laws of England and Wales. Tender pricing and payments must be in GBP. This procurement and award are subject to the UK Government transparency arrangements and is subject to the Freedom of information Act 2000.