Ireland's HSE Secures €50 Million Framework for Energy Efficient Designer Services for Major Capital Works

A multi-party framework agreement for energy efficient designer services worth up to €50 million has been awarded by Ireland's Health Service Executive (HSE). The contract, won by five leading engineering and project management firms including Mott MacDonald Ireland, AECOM Ireland, and J.V. Tierney, demonstrates how Ireland's health service is embedding energy efficiency into its major capital works programme.

Introduction

Every hospital, primary care centre, and health facility in Ireland depends on efficient energy systems to operate sustainably and cost-effectively. As the HSE embarks on major capital works projects valued between €50 million and €400 million, ensuring these facilities are designed with energy efficiency at their core is essential. The HSE has taken a significant step to address this by awarding a new multi-party framework agreement for energy efficient designer services.

While not a headline-grabbing infrastructure deal, this contract is fundamental to ensuring that Ireland's new health facilities are sustainable, cost-effective, and compliant with increasingly stringent energy regulations. It reveals a great deal about how Ireland's health service is embedding environmental sustainability into its capital investment programme.

Why This Contract Matters

The HSE Dublin and South-East health region is responsible for providing health and social care services to a population of over 1.5 million people across South-East Dublin, Carlow, Kilkenny, South Tipperary, Waterford, Wexford, and most areas of Wicklow. As the region develops new health facilities, the need for expert energy efficient design services is critical.

By structuring this procurement as a multi-party framework agreement, the HSE ensures that it has access to a pool of pre-qualified, expert designers who can be called upon as individual projects arise. This approach reduces procurement time, ensures consistency in design quality, and delivers better value for money.

Contract Timeline

• Previous notice referenced: 4c14393d-3c31-44df-a221-59e75912a38c-01
• Contract award notice published: 16 July 2026 (OJ S 135/2026)
• Contracts concluded: 14 July 2026

Contract Overview

The HSE conducted an open procedure for a multi-party framework agreement for energy efficient designer services for major capital works. The contract covers projects valued between €50 million and €400 million (excluding VAT) in the HSE Dublin and South East health region, excluding St Vincent's University Hospital and St Michael's Hospital.

The total estimated value of the framework agreement is €30 million, with a maximum value of €50 million. The contract duration is 48 months. The award criteria were weighted: quality (70%) and cost (30%), reflecting the HSE's emphasis on design excellence and technical expertise.

Key Contract Details

Detail	Information
Contracting Authority	Health Service Executive (HSE)
Winning Bidders	Mott MacDonald Ireland, J.V. Tierney and Co (2002) Ltd, Varming Consulting Engineers Ltd., AECOM Ireland Limited, KSN Project Management
Contract Subject	Energy-efficiency consultancy services (CPV 71314300)
Procedure Type	Open procedure
Legal Basis	Directive 2014/24/EU
Estimated Value (ex-VAT)	€30,000,000.00
Maximum Framework Value	€50,000,000.00
Duration	48 Months
Project Value Range	€50m - €400m (ex-VAT)
Award Criteria	Quality (70%), Cost (30%)
EU Funding	None disclosed
Covered by GPA	Yes
Review Organisation	The High Court of Ireland

Project Scope

The framework agreement covers energy efficient designer services for major capital works in the HSE Dublin and South East health region. The services include energy-efficiency consultancy (CPV 71314300), mechanical and electrical engineering services (CPV 71334000), and engineering design services for mechanical and electrical installations for buildings (CPV 71321000).

The framework is specifically for projects with values between €50 million and €400 million (excluding VAT), covering the entire project lifecycle from initial design through to completion. The region served includes South-East Dublin, Carlow, Kilkenny, South Tipperary, Waterford, Wexford, and most areas of Wicklow.

About the Contracting Authority

Health Service Executive (HSE) is the body responsible for providing health and social care services in Ireland. It manages the largest capital investment programme in the Irish health sector, developing new hospitals, primary care centres, and other health facilities. The HSE's Dublin and South-East region serves a population of over 1.5 million people, making it one of the largest health regions in the country. This procurement was managed through the HSE's procurement function, based at Oak House, Millennium Park, Naas, Co. Kildare.

About the Winning Companies

Mott MacDonald Ireland is a medium-sized engineering and project management consultancy, part of the global Mott MacDonald Group. Based in Dundrum, Dublin, the company brings extensive experience in health infrastructure and energy-efficient design across Ireland and internationally.

J.V. Tierney and Co (2002) Ltd is a medium-sized Irish engineering consultancy based in Dublin 8. Established for over 80 years, the firm has deep expertise in mechanical and electrical engineering design, with a strong track record in health and public sector projects.

Varming Consulting Engineers Ltd. is a small Irish consultancy based in Dundrum, Dublin. With a focus on mechanical, electrical, and sustainable design, Varming has extensive experience in the health sector and brings specialist knowledge in energy-efficient building systems.

AECOM Ireland Limited is a large international engineering and design consultancy, with offices in Dublin 4. As one of the world's largest design firms, AECOM brings global expertise in energy-efficient design and major capital project delivery.

KSN Project Management is a medium-sized Irish consultancy based in Dublin. The firm specializes in project management and engineering design services, with a strong presence in the Irish public sector and health infrastructure market.

Procurement Analysis

Procedure: An open procedure was used, which is the most transparent and inclusive method under EU law, allowing any interested supplier to submit a bid. Five tenders were received, all submitted electronically.

Award Criteria: Quality was weighted at 70%, while cost was weighted at 30%. This heavy emphasis on quality reflects the HSE's priority on design excellence, technical expertise, and energy efficiency innovation over the lowest price.

Framework Structure: The agreement is structured as a framework agreement, partly without reopening of competition and partly with reopening of competition. This hybrid structure allows the HSE to directly award certain call-offs while retaining the option to run mini-competitions for more complex or specific requirements.

Project Value Range: The framework covers projects valued between €50 million and €400 million, targeting the HSE's largest and most significant capital investments where energy efficiency design has the greatest impact.

Strategic Procurement: While the procurement is not classified as strategic procurement, the quality-weighted criteria and focus on energy efficiency align with broader Irish government sustainability objectives.

GPA Status: The procurement is covered by the World Trade Organization's Government Procurement Agreement (GPA), meaning it was, in principle, open to qualifying international bidders. However, all winning bidders were Irish companies.

Additional Procurement Facts

• The framework covers the HSE Dublin and South East health region, excluding St Vincent's University Hospital and St Michael's Hospital.
• The contract duration is 48 months.
• Five tenders were received, all submitted electronically.
• All five winning bidders were Irish companies, ranging from small to large enterprises.
• Subcontracting status for all winners is "not yet known."
• The contract is not financed with EU funds.
• Disputes or review requests fall to The High Court of Ireland.

Market & Industry Perspective

The energy-efficient design consultancy market in Ireland is dynamic and growing, driven by increasing regulatory requirements, sustainability targets, and the HSE's significant capital investment programme. This framework agreement is a prime example of how the health service is strategically procuring specialist design expertise to ensure its new facilities meet the highest energy efficiency standards.

The weighting of the award criteria (70% quality, 30% cost) is a notable trend in public sector procurement for professional services. It signals that the HSE is prioritizing strategic design expertise, innovation, and proven delivery capability over the lowest cost. This benefits established consultancies with strong technical credentials and deep experience in the health sector.

The multi-party framework structure—with five winners—ensures that the HSE has a diverse pool of expertise to draw upon, allowing for competition on individual projects while maintaining the efficiency of a framework agreement.

Economic Significance

With a maximum value of €50 million, this framework agreement represents a substantial financial commitment and provides significant economic security for the five winning consultancies. It ensures a predictable revenue stream and the stability to plan resources, invest in talent, and develop innovative energy-efficient design solutions for the health sector.

For the HSE, the framework agreement is expected to generate value through reduced procurement costs, consistent design quality, and the delivery of energy-efficient facilities that will deliver lower operating costs and reduced carbon emissions over their lifecycle.

Future Procurement Opportunities

This framework agreement covers the HSE Dublin and South East region. Other HSE regions may adopt similar frameworks for energy efficient designer services on their own cycles, creating opportunities for consultancies to expand their public sector portfolios.

Beyond this specific framework, the HSE has a significant pipeline of capital projects, including new hospitals, primary care centres, and community facilities. This framework will be a primary mechanism for procuring design services for major projects, and consultancies not on this framework may need to seek subcontracting opportunities or await future framework renewals.

Opportunities for Suppliers

Engineering consultancies and project management firms active in the Irish public sector should note that this framework is part of a broader trend of centralizing and professionalizing the procurement of design services. The emphasis on quality (70%) over cost (30%) rewards consultancies with strong technical credentials, proven health sector experience, and innovative energy efficiency expertise.

For firms not currently on this framework, opportunities may arise through subcontracting with the five winning consultancies, or by positioning for future framework renewals and expansions to other HSE regions.

What Businesses Should Watch

• How the HSE distributes call-offs across the five winners, which will determine the real financial value each consultancy receives.
• Whether other HSE regions adopt similar multi-party frameworks for energy efficient design services.
• The specific energy efficiency standards and requirements embedded in call-offs, which may signal evolving regulatory and sustainability expectations.
• Opportunities for subcontracting or teaming with the five framework winners on specific projects.

IrelandTender Procurement Intelligence

This contract is a useful case study in how Ireland's HSE is modernizing its approach to major capital projects. By establishing a multi-party framework agreement for energy efficient designer services, the HSE has created a streamlined, efficient mechanism for procuring specialist design expertise for its largest and most significant capital investments.

The most interesting signal is the 70% weighting for quality. This confirms that for complex professional services, price is becoming a secondary consideration. The focus is on the ability to deliver high-quality, energy-efficient designs that will reduce operating costs and carbon emissions over the long term. This shift rewards consultancies that invest in technical expertise, innovation, and sustainable design capability.

The hybrid framework structure—partly without reopening and partly with reopening of competition—also reflects a maturing procurement approach. It offers the HSE the flexibility to award routine work directly while retaining the option to run competitive mini-procurements for more complex or innovative design requirements.

For suppliers, the lesson is that competing on technical excellence, health sector expertise, and energy efficiency innovation—not just price—is what wins these tenders. Consultancies that can demonstrate strong sustainable design credentials and proven delivery on major capital projects are best positioned as the HSE and other public bodies renew similar frameworks over the coming years.

Supplier Takeaways

• Energy efficient designer services frameworks across Irish public bodies follow a recurring, region-by-region cycle, worth mapping for pipeline visibility.
• Quality was weighted higher than cost in this award; suppliers should lead proposals with technical excellence and sustainability evidence.
• Multi-party framework structures allow multiple consultancies to participate, offering opportunities for both large and medium-sized firms.
• Hybrid framework agreements (partly without reopening, partly with reopening) offer a balance of stability and flexibility for suppliers.
• Health sector expertise and proven major capital project delivery are critical success factors.

Key Takeaways

• HSE awarded a multi-party framework agreement for energy efficient designer services worth up to €50 million.
• Five winners were selected: Mott MacDonald Ireland, J.V. Tierney, Varming Consulting Engineers, AECOM Ireland, and KSN Project Management.
• The framework covers projects valued between €50 million and €400 million in the HSE Dublin and South East region.
• Award criteria: quality (70%) and cost (30%).
• Contract duration is 48 months.
• All winning bidders are Irish companies, ranging from small to large enterprises.

Conclusion

This is not a contract that will make national headlines, but it reflects something structurally important about how Ireland's health service is planning for a sustainable future. By establishing a multi-party framework agreement for energy efficient designer services, the HSE has ensured that its major capital projects will be designed to the highest energy efficiency standards, reducing operating costs and carbon emissions for decades to come. Five leading consultancies—Mott MacDonald Ireland, J.V. Tierney, Varming Consulting Engineers, AECOM Ireland, and KSN Project Management—now carry this responsibility through 2030.

Frequently Asked Questions

Q: What is the Health Service Executive (HSE)?

It is the body responsible for providing health and social care services in Ireland, managing the largest capital investment programme in the Irish health sector.

Q: What does this framework cover?

It covers energy efficient designer services for major capital works in the HSE Dublin and South East region, including energy-efficiency consultancy, mechanical and electrical engineering services, and engineering design services.

Q: What is the value of this framework?

The estimated value is €30 million, with a maximum value of €50 million over the 48-month duration.

Q: Why was quality weighted higher than cost?

The HSE prioritized quality (70%) over cost (30%) to ensure that facilities are designed to the highest energy efficiency and sustainability standards, delivering long-term operating cost and carbon savings.

Q: Is this contract open to international bidders?

Yes, the procurement is covered by the WTO Government Procurement Agreement (GPA), making it theoretically open to qualifying international bidders. However, all winning bidders were Irish companies.

Source: EU Official Journal, Contract Award Notice 493811-2026, OJ S 135/2026, published 16 July 2026.