Tendring District Council received a £1.2 million Salix grant, plus £165,000 from the Council, to replace Clacton Leisure Centre's oil boiler with sustainable technology. Due to grant deadlines and boiler risks, an urgent consultant appointment was needed. A procurement exemption allowed immediate appointment of Heaton Design and Engineering Ltd, already familiar with the project; this was published on 15/07/2025. The current officer decision is simply to formalise contracts with Heatons Design Engineering Ltd.
https://tdc-mgov-prd-01.tendringdc.gov.uk/ieDecisionDetails.aspx?id=13722

Tto enter into a contract with Heatons Design Engineering Ltd (HDE) following their submission of a comprehensive and competitive consultant proposal that aligns with the requirements of the Public Sector Decarbonisation Scheme (PSDS). The scope of services to be provided includes:
Comprehensive mechanical and electrical (M
Structural assessments for Solar PV and ASHP installations;
Ground Penetrating Radar (GPRS) and noise surveys;
Asbestos R
Project support, including tender assistance, site duties, CDM Principal Designer responsibilities, and contract administration;
DNO applications and coordination with suppliers and specialists.
The proposed fee is £102,800.00 (exclusive of VAT), which encompasses design, engineering, and project delivery, in addition to terms covering supplementary services, payment schedules, and insurance liability up to £5 million.
The total contract value is up to £113,080.00, inclusive of a 10% contingency allowance.
This officer decision follows an initial exemption agreement published on 15/07/2025, available at: https://tdc-mgov-prd-01.tendringdc.gov.uk/ieDecisionDetails.aspx?id=13722

Under the initial procurement measures, different options were considered and have been detailed below for ease. However, as the decision has been taken to proceed with Heatons, this officer decision is to formally enter into contract:
1.Mini Competition via Framework (e.g. NEPRO3)
While this route allows for a direct appointment under call-off terms, it still requires a competitive tender process within the framework, including contractor selection and a minimum two-week tender window. Previous experience with NEPRO3 has highlighted delays in contract issuing and administrative inefficiencies. Additionally, this route would incur a 7.5% surcharge (£7,710), reducing value for money and increasing project costs. The estimated timeline of 8–10 weeks poses a significant risk to meeting Salix funding deadlines.
2.Design and Build Framework (e.g. ECF3)
This option offers integrated delivery and potential efficiencies but introduces risks around impartiality in design validation and contractor self-certification. The process would take up to three months and may not attract sufficient market interest within the required timeframe. While compliant, this route does not align with the timeline of the project. Additionally, an informal Expression of Interest (EOI) was completed, resulting in one contractor showing interest, two requesting a specification, and one declining interest, which presents a risk.
3.Phased Procurement Below RFQ Threshold
Splitting the consultancy scope into phases under the £50K threshold risks breaching procurement regulations due to perceived disaggregation. This approach also risks non-compliance with Salix grant conditions and could result in clawback of funding. It is not considered a viable or compliant option.
4.Do Not Proceed
Abandoning the project would result in the loss of the £1.2 million Salix grant and leave Clacton Leisure Centre reliant on a single, end-of-life oil boiler. This would expose the Council to significant financial risk, service disruption, and reputational damage. The full cost of system replacement would fall to the Council, with no external funding support.