Framework Agreement Worth 170 Million

— This is a major, solid three-year framework agreement that we are very pleased to have secured. In the tender competition we scored a full house, ten out of ten possible points, on the criteria price, delivery terms and quality, says Jarle Nødset, District Manager Northern Norway and Team Leader Customer Service at Møre Trafo.

The District
The clients are the grid companies Elmea AS, Vestall AS and Noranett AS. Elmea is the grid company in the Lofotkraft group and supplies around 17,000 grid customers. Vestall is a wholly owned subsidiary of Vesterålskraft AS, headquartered in Sortland, and has around 12,000 grid customers. Noranett consists of three grid companies, Noranett Hadsel AS, Noranett Andøy AS and Noranett AS, with distribution networks in northern Nordland and southern Troms. These three grid companies in the Nordkraft group, headquartered in Narvik, supply a total of around 51,500 grid customers.

Purpose

The purpose of the procurement was to enter into a framework agreement that ensures the client receives deliveries of the transformers with specified additional equipment that the client needs at any time for its grid operations. The aim is also for the framework agreements to help streamline the client’s operations and reduce costs.

The framework agreement runs for three years, with options to extend by one year at a time up to a maximum of six years.

— Møre Trafo will now deliver the transformers to these grid companies, while ABB won the framework agreement for supplying substations, explains Nødset.

Major Investment

Procurement Manager Elin Sommerseth at Elmea is very pleased to have put in place a framework agreement with a solid manufacturer and supplier. This is their first framework agreement with Møre Trafo, but they know Møre Trafo well from deliveries of transformers outside framework agreements.

Will Increase Investments

— For us as contracting authorities, this is a major investment. Statistics show that in the period 2021–2022, transformers worth 36 million kroner were procured in total for the contracting authorities. The companies’ strategy indicates that the investment pace will most likely increase going forward, and with an expected price increase, the estimated maximum value of the framework agreement is then 170 million kroner, says Sommerseth.

Decisive

Two transformer suppliers competed for the framework agreement, and according to Sommerseth it was a close race between two strong suppliers. What decided it was Møre Trafo’s ordering and procurement solutions.