To work with the CEF, an organization must first seek membership. This grants access to CEF’s support throughout the procurement, installation, and savings monitoring phases of the contract. The CEF process offers a comprehensive methodology for procuring projects.
Stage 1: Membership (4 Weeks)
Before proceeding to a mini-competition, 1 to 2 months of preparation is required. This phase involves gathering data, obtaining approvals, and preparing for the project launch. Key tasks include:
- Express Interest: The new member emails the fund at EOI@carbonandenergyfund.net to express interest in joining.
- Share Project Scope: Provide CEF with the scope of the intended project, supported by relevant documentation such as an estates strategy or business case.
- Site Meeting: CEF meets with the new member’s team, including Estates, Finance, and Procurement, to discuss the existing and proposed installations and to gather technical information.
- Feasibility Study: CEF conducts an outline feasibility study to ensure a self-funded solution repaid through guaranteed savings is possible.
- Membership Agreement: The new member completes the membership agreement, which outlines the responsibilities of both parties, before moving to the mini-competition phase.
Stage 2: Invitation to Mini-Competition (8 Weeks)
Once membership is established and data collection is complete, the mini-competition phase begins, compliant with UK Procurement Regulations.
- Mini-Competition: CEF invites shortlisted companies from its framework to express interest in the project. Interested companies are invited to an open day to learn about the project and formulate support ideas.
- Selection Process: After a two-week idea formulation period, the new member holds interviews with interested bidders, who present their initial ideas, track record, approach, and cost model. These interviews are scored, and the top-scoring companies are selected.
Stage 3: Invitation to Tender (ITT) and Contract Close (20 Weeks)
The new member releases an Invitation to Tender to the four selected bidders.
- Bid Submission: Bidders present their proposals in the form of a business case. CEF and the member evaluate the bids to select the best value-for-money option.
- Board Approval: The project recommendation is sent to the member’s board for approval. If not approved, the project stops at no cost to the member.
- Contract Finalization: If approved, the chosen bidder has three months to complete the design and technical schedules. The member is expected to sign the contract if it meets the agreed-upon price and savings.
Stage 4: Construction (Project Dependent)
The installation phase begins with the contract award and typically lasts a year.
- Project Oversight: CEF chairs monthly technical and project board meetings to assist the member in managing the installation.
- Completion Tests: CEF oversees tests to ensure the installation meets technical and financial standards before approving practical completion.
Stage 5: Contract & Performance Assurance
Once practical completion is achieved, the member begins payments, and the guaranteed savings start.
- Performance Monitoring: Monthly energy meter readings are collected and monitored by CEF. Quarterly reviews are conducted to address any performance issues.
- Savings Certification: At the end of the year, CEF certifies the savings. If they fall below the guaranteed level, the contractor compensates for the shortfall.
- Ongoing Support: CEF supports the member with any contractual or performance issues at no extra cost.
Fees
CEF charges no upfront fees for project management, technical, legal, procurement, or financial support. Instead, the cost is included within the bid presented to the member’s board and covered by guaranteed savings. The contract includes a contribution to CEF’s costs, benchmarked at 50% of typical fees for similar public sector projects. Members pay nothing until the project is procured, installed, and delivering guaranteed savings.
This approach offers a unique procurement route with no financial commitment until a preferred bidder is appointed by the member’s board.
Contact us to start your membership journey today.
