Common use of Minimum Service Requirements Clause in Contracts

Minimum Service Requirements. The supplier shall be required to design, build, finance, operate and maintain all systems necessary to provide heat (and in some instances hot water) at all times to the end users, with clearly defined and acceptable standards to be agreed as part of the Competitive Dialogue process and described in the form of Output Specification Tables. Separate arrangements may be developed with other senior users - HM Prison Leicester and the University of Leicester - via the Competitive Dialogue process. Whilst no particular technology or fuel is specified, the final agreement will contain Output Specification Tables (see sample layout in Appendix 6) that require the supplier to provide heat (and hot water) for the Scheme as follows: • In particular, heat and hot water will be delivered every day. In the event of heat and/or hot water supply being interrupted, service should be restored within timescales agreed and in a priority order as identified by the end users as part of the Competitive Dialogue process, with the end users imposing revenue deductions / penalties relative to failure to meet the Output Specification and agreed Service Level Criteria. • Within certain temperature ranges as identified in Appendix 5. • Compliant with requirements contained in, or arising of, all relevant environmental legislation, including the Clean Air Act 1993; the Local Air Quality Management Regime as set out in Part IV of the Environment Act 1995 and Guidance issued thereunder; and Part III of the Environment Act 1990 (statutory nuisance), with proposals to be assessed for Air Pollution and Noise implications by the City Council Environmental Services Division. • To achieve agreed reductions in CO2 emissions and to ensure that the scheme is energy efficient and progressively reduces carbon emissions in line with targets to be specified in the Output Specification Tables. Minimum requirements will be based on savings identified in the feasibility study (Appendix 2 – page 41) of 7,300 tonnes per annum by 2015 and 13,100 tonnes by 2019, with ongoing savings thereafter. As contributing to the City of Leicester’s climate change objectives of a 50% reduction in CO2 by 2025 is a priority for the Council and the Project, evaluation criteria at bid stage will be weighted to take account of this priority. • Back-up plant and alternative fuel types should be available to provide security of supply. Service availability should be as near to 100% as possible with an acceptable level of planned and unplanned outages; timescale for fixes and penalty charges applicable for failure to achieve service levels to be agreed during contract negotiations and specified in the Output Specification Tables. It is therefore anticipated that existing plant will be updated and additional plant developed to take advantage of efficiencies to be gained from new technologies and innovation in fuels and utilisation of those fuels.