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PROCUREMENT OPPORTUNITY

Heat and Power Supply and Heat Pump Operation – Birmingham Children's Hospital

Birmingham Women's and Children's NHS Foundation Trust · Transparency notice on Find a Tender

Tender information last checkedLast checked 12 Oct 2026, 15:56.

Opportunity overview

Birmingham Women’s and Children’s NHS Foundation Trust (the “Trust”) intends to enter into a contract with Birmingham District Energy Company (“BDEC”) on the terms described below (the "Contract"). The parties to the Contract shall be BWC Management Services Limited (“BWCMSL”) (a wholly owned subsidiary of the Trust), and/or the Trust (or in each case, any successors thereof) (with the contracting entity/entities referred to as the “Authorities”), and BDEC. Pursuant to the Contract, BDEC will supply heat and power to Birmingham Children’s Hospital via the existing District Heating Network scheme, utilising a ground source heat pump (“GSHP”) acquired by the Trust with funding from the Department for Energy Security and Net Zero's Public Sector Decarbonisation Scheme. The Contract will require BDEC to operate and maintain the ground source heat pump as part of the overall transaction. BDEC currently supplies heat and power services to Birmingham Children’s Hospital in relation to the Trust’s existing Combined Heat and Power (“CHP”) system through a back-to-back agreement between Birmingham City Council and BDEC (the “Current Arrangement”). The Contract will supersede all of the obligations relating to heat and power pursuant to the Current Arrangement. However, the Authorities will continue to require certain services currently provided through the Current Arrangement, under the new Contract, to the extent that such services are required as part of the Authorities’ heat/power resilience strategy. The Contract will support the Trust's objective of meeting NHS England’s carbon reduction targets by 2027, five years ahead of its mandated target, while ensuring continuity of service and technical compatibility across the network.

Awarded to

Amounts belong to published awards or contracts. Where several suppliers share one value, it is labelled as shared and is not a supplier-specific allocation.

BIRMINGHAM DISTRICT ENERGY COMPANY LIMITED

Matched by exact name
Published award value
£73.3m
Awarded
29 Sept 2026
Award ID
1
Status
pending
Identifier
GB-PPON PMGX-6253-TDDH
Location
London, UKI42, E15 2HG, United Kingdom

Classification

No classification was supplied.

Lots

  • Lot 1Value not stated

Documents and notices

Published notice details

Additional information from the published procurement release. Fields appear only when supplied by the source; check the original notice and tender documents before acting.

Scope, procedure and submissions

Id
C477615
Status
complete
Procurement Method
direct
Procurement Method Details
Direct award
Why this procedure was chosen
BDEC has exclusive rights to supply heat and power to Birmingham Children’s Hospital by virtue of the Current Arrangement, and it currently has exclusive ownership and operation of its district energy network scheme which supplies heat to the Trust. It would not be possible for the Authorities to permit an alternative supplier to operate and manage the GSHP plant and equipment as part of the provision of the service independently of the district energy network scheme. The Trust has no ability or right to oblige BDEC to allow a third party to deliver heat on the network. This ground is demonstrated by the technical incompatibility of operating two independent energy centres for the CHP and GSHP systems at incompatible specifications on the same heat network (even if BDEC was to allow a third party to deliver heat on its network). In particular, the differing operating parameters of the respective systems mean that, if the outputs are not aligned, this could result in inefficiencies in the operation of the plant, higher operational costs, or plant shutdown, given that both systems utilise the same pipework. Achieving compatibility would give rise to disproportionate technical difficulties in operation.
Published risks
Description of risks to contract performance The following known risks could jeopardise the satisfactory performance of the Contract over its term: Ageing plant: the existing CHP plant and associated network infrastructure may require major refurbishment or replacement during the term. Combined operation of CHP and GSHP: the ongoing operation of the CHP and GSHP systems on the same heat network may require changes to plant, controls or the operating regime to maintain efficient and reliable operation. Long-term GSHP performance: the output or efficiency of the ground loop, boreholes or heat pump plant may decline over the term, requiring remedial works or additional or replacement plant. Changes in demand: redevelopment, extension, reconfiguration or rationalisation of the Birmingham Children's Hospital site or its services may materially change the Authorities' heat and power requirements. Change in law and regulation: including the regulation of heat networks, heat network zoning under the Energy Act 2023, NHS and government net zero requirements, and energy taxes and levies, which may require changes to the services, service standards, metering, pricing or plant. Energy market volatility: significant changes in electricity or gas prices may affect the cost of operating the GSHP and CHP systems and the operation of the pricing mechanism. Network and third-party arrangements: changes to, or termination of, the arrangements between BDEC, Birmingham City Council or other parties relating to the ownership, operation of or access to the district energy network. Resilience and continuity of supply: prolonged plant failure or network outage requiring alternative or back-up heat and power provision for a critical healthcare site.

Legal basis

Id
2023/54
Scheme
UKPGA

Procedure reasons

Entry 1
Id
singleSuppliersIntellectualPropertyExclusiveRights
Entry 2
Id
singleSuppliersTechnicalReasons

Lots and requirements

Entry 1
Id
1
Status
complete

Published documents

Entry 1
Id
conflictOfInterest
Document Type
conflictOfInterest
Description
Not published

Buyer, suppliers and contacts

Organisation 1
Name
Birmingham Women's and Children's NHS Foundation Trust
Id
GB-PPON-PNXM-2771-CPCW

Identifier

Scheme
GB-PPON
Id
PNXM-2771-CPCW

Address

Street Address
Steelhouse Lane
Locality
Birmingham
Postal Code
B4 6NH
Country
GB
Country Name
United Kingdom
Region
UKG31

Contact

Roles

buyer

Details

Classifications

Entry 1
Scheme
UK_CA_TYPE
Id
publicAuthorityCentralGovernment
Description
Public authority - central government
Organisation 2
Name
University Hospitals Birmingham NHS Foundation Trust
Id
GB-PPON-PWVL-6877-BXXV
Role Details
Birmingham, Black Country and Solihull Procurement Collaborative are responsible for procurement activities on behalf of the Contracting Authority

Identifier

Scheme
GB-PPON
Id
PWVL-6877-BXXV

Address

Street Address
Queen Elizabeth Hospital Birmingham, Mindelsohn Way, Edgbaston
Locality
Birmingham
Postal Code
B15 2GW
Country
GB
Country Name
United Kingdom
Region
UKG31

Contact

Roles

procuringEntity

Details

Organisation 3
Name
BIRMINGHAM DISTRICT ENERGY COMPANY LIMITED
Id
GB-PPON-PMGX-6253-TDDH

Identifier

Scheme
GB-PPON
Id
PMGX-6253-TDDH

Address

Street Address
5 Clarnico Lane
Locality
London
Postal Code
E15 2HG
Country
GB
Country Name
United Kingdom
Region
UKI42

Contact

Roles

supplier

Details

Scale
large
Vcse
No

Award information

Award 1
Id
1
Title
Heat and Power Supply and Heat Pump Operation - Birmingham Children's Hospital
Status
pending
Main Procurement Category
goods
Above Threshold
Yes

Items

Item 1
Id
1
Related Lot
1

Additional Classifications

Entry 1
Scheme
CPV
Id
09323000
Description
District heating

Delivery locations

Entry 1
Region
UKG31
Country
GB
Country Name
United Kingdom

Value

Including VAT
76,968,132
Amount
73,302,983
Currency
GBP

Suppliers

Supplier 1
Id
GB-PPON-PMGX-6253-TDDH
Name
BIRMINGHAM DISTRICT ENERGY COMPANY LIMITED

Contract period

Starts
1 Jan 2027, 00:00
Ends
31 Dec 2051, 23:59

Related lots

1

Documents

Entry 1
Id
096144-2026
Document Type
awardNotice
Notice Type
UK5
Description
Transparency notice on Find a Tender
Published
12 Oct 2026, 14:44
Format
text/html

Milestones

Entry 1
Id
1
Type
futureSignatureDate
Due
14 Dec 2026, 23:59
Status
scheduled

Recorded locations

  • Buyer location · Birmingham · UKG31 · B4 6NH · United Kingdom

Notice and amendment history

2 published notice versions reviewed by ProcuraAxis.

2 VERSIONS
  1. 096144-2026Transparency notice on Find a Tender ·
  2. 096146-2026Contract award notice on Find a Tender ·

PROCURAAXIS AWARD ANALYSIS

Award outcome intelligence

Evidence-bound analysis of the published award appears below the official tender and award information.

ANALYSIS PREVIEW

Award intelligence at a glance

Birmingham Women’s and Children’s NHS Foundation Trust has published a transparency notice for a proposed direct award to BIRMINGHAM DISTRICT ENERGY COMPANY LIMITED for heat and power supply and operation and maintenance of a ground-source heat pump at Birmingham Children’s Hospital. The award is pending, with a future signature date scheduled for 14 December 2026; it is not evidence of a signed or active contract.

Published outcome signals

  • Notice typeTransparency notice on Find a TenderEvidence: Award document 096144-2026 is described as a Transparency notice on Find a Tender.
  • Procurement statusComplete procurement record; award status pendingEvidence: Tender status is complete, while award 1 is explicitly marked pending.
  • Contract conclusionNot confirmedEvidence: The notice says the Trust intends to enter into the contract; award 1 has a scheduled future signature date.
97% approved-analysis confidence1 supplier record analysed4 source limitations

SOURCE AND FRESHNESS

Traceable procurement data

Source
Find a Tender
Notice reference
096144-2026
OCID
ocds-h6vhtk-0785bf
First published
12 Oct 2026
Last checked
12 Oct 2026, 15:56
Notice versions reviewed
2
View Find a Tender notice ↗

HOW THIS WAS PREPARED

Approved, evidence-bound analysis

ProcuraAxis structures information found in published procurement records, checks the result for consistency and publishes only approved analysis. Confidence describes the completeness and consistency of the available source information; it is not a guarantee of eligibility or contract award.

Analysis status
Approved for publication
Analysed
12 Oct 2026
Read the analysis methodology →