DECC Framework Contract for Innovation Delivery Support – presentation to potential contractors Thursday 20 October

1.Overview of the DECC innovation programme. 2.Background on DECC’s innovation delivery and the need for a framework contract. 3.Examples of the types of support DECC is seeking from its framework suppliers. 4.Insights into how DECC plans to manage the framework contract once established. 5.Tender timetable 6.Questions and answers session Agenda

The DECC Energy Innovation Programme aims to contribute to DECC’s objectives – in particular delivering secure energy on the way to a low carbon energy future – by ensuring that the right energy innovation happens. To achieve that aim the Programme will support innovation in key low carbon energy technology areas that can: o reduce the risk of not meeting the UK’s energy objectives; and/or o the cost of meeting those objectives. DECC seeks to support innovation directly and indirectly. DECC has over £150m to directly fund low carbon innovation programmes over the 4 year spending review period (FY11/12 to FY14/15). The innovation programmes focus is on long term targets –in particular. 80% reduction in carbon emissions by 2050 from 1990 levels. DECC’s Innovation Programme

DECC can provide innovation funding if there is an unmet innovation need – our focus is primarily the later stages of the innovation journey funding: o late stage development and partial and full scale demonstration (TRLs 5/6 - 8/9). DECC has worked with other innovation funders to develop a pooled, shared evidence base of key innovation needs called Technology Innovation Needs Assessment project (TINA). Informed by that TINA analysis we have developed an innovation portfolio comprising around technology areas. We expect to run individual schemes or calls. The majority of schemes will be run on a competitive calls basis which will provide grants to companies, consortiums and academics to fund the development and demonstration of their technologies. DECC’s Innovation Programme

Historically DECC’ s innovation delivery was dispersed across DECC policy teams and various external bodies. Following an internal review DECC has centralised its innovation delivery in a new 10 person Innovation Delivery team. That team is our primary delivery route but where there are areas of overlapping interest we also look to partner with other bodies, e.g. the Technology Strategy Board (TSB). Where those two options provide insufficient skills or capacity we will look to bring in external support – on a competitively tendered basis. Delivering innovation schemes

Precise needs will depend on the details of programmes still under development Looking to contract in a range of skills & experience – technical, commercial and delivery. Expect to include several organisations to provide breadth and choice. Looking for high quality and flexibly resourced innovation programme support. Effective history in managing complex technology programmes. Experience of selecting, developing and applying a range of interventions against programmes to support technology development. Organisations able to draw on a pool of expert resource when required, often at short notice. Support Needed

DECC is looking for organisations with some or all of the following skills and expertise to support the management of its programmes: Programme management (appraising, designing, launching, assessing applications, monitoring projects and evaluation) Technical and engineering knowledge and skills in respect to specific low carbon technologies. Financial knowledge and skills to support specialist interventions, such as repayable grants. Negotiation skills to support the development of contracts or grant offers. Support Needed – specific skills

DECC’s innovation priorities are not yet set in stone, however as a guide we would expect suppliers to have significant knowledge of at least some of the following technology areas:  off-shore wind  marine  energy efficiency in domestic & non-domestic buildings  renewable heat (storage, pumps and networks)  electricity storage  energy from waste and bio-mass  carbon capture and storage  hydrogen and fuel cells  other low carbon technologies Support Needed – technologies

Precise tasks will depend on the details of programmes still under development. The following are hypothetical illustrative examples intended to be a guide only. –Design of a detailed scheme delivery plan – including engagement with stakeholders, analysis of evidence base, design/selection of appropriate interventions, assessment of value for money, developing a timetable/schedule, documenting the scheme delivery plan. Support Needed – task examples

Managing a competitive grant call – developing and issuing the call document, managing the queries and applications, organising (and participating in) the appraisal process, challenging proposals, negotiating details of grant offers and drawing up the final grant offer agreement. Providing expert technical input into the appraisal and selection of proposals and the negotiation of the delivery plan. Close engagement with grant recipients to: –monitor and challenge progress; –provide guidance and technical advice and support; and –indentify commercial/business needs and recommend/provide incubator support. Support Needed – task examples

Managing the contract DECC estimates it will likely require up to £2million of framework contract support for the delivery of its innovation programmes. Delivery support will be drawn on between 2012 – Due to the breadth of the programmes and types of support DECC requires we expect to select at least three suppliers – but potentially more. For each project commissioned through the framework a task specification would be issued, e.g. design a scheme and market and manage a call. Framework suppliers will be asked to bid to undertake the project and DECC will allocate the work to a preferred supplier based on the expertise on offer and cost. We anticipate the majority of the tasks will have a value in the range of £50-200k. A contract manager based in the DECC innovation delivery team will manage the framework.

Timetable Part 1: Pre-qualification Last time and date for receipt of queries about PQQ 5pm, 14 November 2011 Answers to PQQ queries circulated by DECC 5pm, 16 November 2011 PQQ Return deadline 5pm, 21 November 2011 Successful & unsuccessful applicants notified w/c 21 November 2011 Part 2: Tender Invitation to tender (ITT) packs despatched 28 November 2011 Last time and date for receipt of queries about ITT 12 December 2011 Answers to ITT queries circulated by DECC 14 December 2011 Tender return deadline 5pm, 16 January 2012 Tender evaluation w/c 23 January 2012 Presentations (if required) w/c 30 January 2012 Preferred supplier(s) selected w/c 6 February 2012

Questions and Answers An opportunity for the audience to ask questions. All answers will be shared with all those who requested a application pack.