Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
The Water Services Regulation Authority
Ofwat, Centre City Tower, 7 Hill Street
Birmingham
B54UA
UK
E-mail: procurement@ofwat.gov.uk
NUTS: UKG31
Internet address(es)
Main address: http://www.ofwat.gov.uk/
I.4) Type of the contracting authority
Body governed by public law
I.5) Main activity
General public services
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Independent Monitor
II.1.2) Main CPV code
79000000
II.1.3) Type of contract
Services
II.1.4) Short description
An independent monitor (the Monitor) was appointed to monitor and review compliance by Thames Water Utilities Limited ("the Company") (a company regulated by Ofwat) with the conditions of the undertakings given by the Company, and accepted by Ofwat, under section 19(1)(b) of the Water Industry Act 1991. In that context, the Monitor has been monitoring and reviewing progress by the Company towards achieving the objective of the undertakings. The Monitor reports to Ofwat and makes recommendations as to any additional steps the Company should take to achieve the conditions and objectives of the undertakings. Under the terms of the undertakings, the Company agreed to pay the reasonable fees and out-of-pocket expenses of the Monitor. The contract end date at the time of award was 15 October 2025.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
3 000 000.00
GBP
II.2) Description
II.2.3) Place of performance
NUTS code:
UKC
UKD
UKE
UKF
UKG
UKH
UKI
UKJ
UKK
UKL
II.2.4) Description of the procurement
In October 2024, Ofwat awarded a 12-month independent monitor contract. No overall or firm fee position was settled at the outset as it was expected that requirements under the contract would develop over time. However, initially the fees were expected to be in the region of £3m for core monitoring work.
The contract was awarded under Regulation 32(2)(c) of the Public Contracts Regulations 2015, as, for reasons of extreme urgency brought about by events unforeseeable by Ofwat, the time limits for the open or restricted procedures or competitive procedures with negotiation could not be complied with. The direct award was justified due to the extremely urgent need to appoint a Monitor to fulfil the requirements of the undertakings under section 19(1)(b) of the Water Industry Act 1991 and in time for key next steps in the Company's equity raise process, and for its commitment to develop and implement a business plan as set out in the undertakings. Therefore, due to the urgency and following a non-regulated competition, Ofwat directly awarded the contract to L.E.K. to act as a Monitor.
Ofwat has subsequently decided to modify the contract on three separate occasions. On each occasion, the modification was justified under Regulation 72(1)(b) of the Public Contract Regulations 2015. The value of each modification was £1.5m and the total contract value after these three modifications is £7.5m. Full details of the three contract modifications alongside an explanation of why this approach was taken can be found in the modification notice which is being published concurrently with this contract award notice.
While Ofwat is not able to confirm exact dates, Ofwat intends to commence a re-procurement process for the award of the longer-term independent monitor at an appropriate juncture in mid-2026.
II.2.5) Award criteria
Price
II.2.11) Information about options
Options:
Yes
Description of options:
The contract permits extensions of the term in limited circumstances. These include where an extension is required to maintain continuity of services while the appointment of a replacement independent monitor is completed and in the event that the Company refers its Final Determination to the Competition and Markets Authority (in which case the contract may be extended for the duration of that process and for a short period following its conclusion).
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Award of a contract without prior publication of a call for competition
Justification for selected award procedure:
Extreme urgency brought about by events unforeseeable for the contracting authority and in accordance with the strict conditions stated in the Directive
Explanation
The contract was awarded under Regulation 32(2)(c) of the Public Contracts Regulations 2015, as, for reasons of extreme urgency brought about by events unforeseeable by Ofwat, the time limits for the open or restricted procedures or competitive procedures with negotiation could not be complied with. Prior to making the direct award, Ofwat carried out a non‑regulated competition involving seven potential suppliers. Following that process, and having regard to the urgency of appointing an independent monitor, Ofwat proceeded to negotiate directly with L.E.K. Consulting LLP and make a direct award.
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
No
Section V: Award of contract
Contract No: PROC.0051
Title: Independent Monitor
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
15/10/2024
V.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
L.E.K. CONSULTING LLP
OC300277
160 Victoria Street, London, England
London
SW1E 5LB
UK
NUTS: UKI
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Initial estimated total value of the contract/lot:
Total value of the contract/lot:
: 3 000 000.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.4) Procedures for review
VI.4.1) Review body
High Court of Justice of England and Wales
The Strand
London
WC2A 2LL
UK
VI.5) Date of dispatch of this notice
28/04/2026