Birmingham City Council (BCC) will appoint its preferred bidder
in early October 2012 to deliver the Green Deal initiative in their
area in a ground breaking procurement that could benefit up to 40
other local authorities, registered providers and other public
sector stakeholders. As BCC's procurement continues towards
contract signature, how ready are you to take advantage of the
opportunities presented by Green Deal and the Energy Companies
This alert considers the key issues that any contracting
authority would need to consider.
- What are the council's strategic objectives and how do they
align with the scope of Green Deal and the three forms of ECO
funding? Green Deal and ECO funding could be used to tackle
fuel poverty and encourage job retention and creation locally.
- What support exists at senior levels of the organisation?
Where does the responsibility for driving such an initiative sit,
given it impacts on many portfolios
- Can the council work with other councils or other public bodies
in the local area to offer scale of opportunity to the private
- What role does the authority envisage playing in the delivery
of Green Deal and ECO in the area? Will the council:
- leave it to the market to delivery the benefits of improved
energy efficiency? But note, the market has been slow to
react and whilst the energy companies offer ECO, will that in
itself maximise the opportunities available?
- act as a facilitator and promoter of Green Deal and ECO in
- procure certain services to support elements of delivery such
as assessors or installers?
- procure a delivery partner to deliver Green Deal and ECO
funding while requiring the DP to deliver wider social and economic
benefits to the citizens in exchange for benefiting from the use of
the council's brand and routes to market?
- How will the council incentivise performance if it procures a
delivery partner and what remedies will it require if the required
performance level is not achieved?
- How will the council ensure that its brand is not exploited by
contracts for their sole benefit and without delivering economic
and social opportunities to the area?
- Will the council be investing any money in its delivery
solution? If so, what is this to fund (capital works, start
up costs, equity buffer) and how will such funding be secured?
- How does the council wish to contract with its delivery
partner(s)? By way of a full corporate joint venture? A
contractual JV? An LLP?
- What properties does the council intend to target through Green
Deal and ECO? Are there existing council properties (domestic
and/or non-domestic) which could benefit from improved energy
efficiency, or is it a broader strategy to benefit all
- What will the council's retained client function look like,
particularly given their new HECA requirements? How will it
be resourced? Realistically, how much performance monitoring
will the council's retained client function carry out and how will
it engage with any delivery partner(s)?
How we can help you
At Bevan Brittan, we have numerous ideas and possible solutions
for you. Our experience of advising Birmingham City Council
on their procurement is unrivalled. Working with policy, locally
and nationally, the new legislation and guidance and with the
private sector bidding community on all aspects of their proposals
allows us to offer support and guidance to you.
We would be delighted to talk to you further about how you could
make the opportunities Green Deal and ECO work for you on their own
or as part of a wider energy strategy.