Contract notice
Section I: Contracting
authority
I.1) Name and addresses
Ofgem
10 South Colonnade, Canary Wharf
London
E14 4PU
UK
Telephone: +44 2079017000
E-mail: procurement2@ofgem.gov.uk
NUTS: UKI
Internet address(es)
Main address: http://www.ofgem.gov.uk
Address of the buyer profile: https://www.mytenders.co.uk/search/Search_AuthProfile.aspx?ID=AA10021
I.2) Joint procurement
The contract is awarded by a central purchasing body
I.3) Communication
The procurement documents are available for unrestricted and full direct access, free of charge at:
www.mytenders.co.uk
Additional information can be obtained from the abovementioned address
Tenders or requests to participate must be sent electronically to:
www.mytenders.co.uk
Tenders or requests to participate must be sent to the abovementioned address
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
Audit of the Data Communications Company (DCC)
Reference number: 2024-082
II.1.2) Main CPV code
79212000
II.1.3) Type of contract
Services
II.1.4) Short description
Under the Operational Performance Regime (OPR) contract management incentive, the auditor assesses the DCC’s management of its contracts. The auditor is tasked with using the scope listed in the most up to date version OPR Guidance document to assess DCC’s contract management performance against the National Auditing Office (NAO) Framework.
Main tasks:
*Assessment of DCC’s commercial activity over the course of the Regulatory Year.
*The auditor will provide a score of DCC’s performance using the NAO Framework. Ofgem will use these scores to determine the final score to be awarded to DCC.
The audit will run on an annual basis and have four main stages:
*Evaluation stage – This will run for around six weeks where the auditor will carry out an assessment of DCC’s commercial activity in the Regulatory Year. The auditor will provide DCC with an interim report which will contain a score and rationale against each supporting question against the NAO Framework.
*Reporting - The auditor will provide a draft report to the Authority which will include DCC’s level of attainment against the NAO Framework. The Authority may ask for iteration of the report before the final version is produced and shared with us.
*Consultation stage – The Authority will publish a summary of report findings and consult on this – no further action is required from the Consultant at this stage.
*Decision – The Authority will consider the responses from stakeholders on the consultation and determine DCC’s retained margin. We may ask the Consultants for further clarification around the scores during this stage.
II.1.5) Estimated total value
Value excluding VAT:
360 000.00
GBP
II.1.6) Information about lots
This contract is divided into lots:
No
II.2) Description
II.2.2) Additional CPV code(s)
79212000
79212200
79212300
79210000
79418000
II.2.3) Place of performance
NUTS code:
UK
II.2.4) Description of the procurement
The DCC is the central communications body licensed to provide the communications, data transfer and management required to support smart metering. DCC was appointed using an outsourced service model, to manage contracted smart metering service providers. As such, external costs compose the largest proportion of DCC’s costs, and it is critical that these contracts are entered into, managed and closed out effectively and efficiently. Each year, the Authority scrutinises DCC’s incurred and forecast costs through the annual Price Control process to determine whether these costs are economic and efficient. Alongside the cost assessment, DCC also faces financial incentives under the Operational Performance Regime (OPR).
Given the Authority’s and industry’s concerns around DCC’s contract management and procurement processes, the Authority consulted on whether it would be appropriate to financially incentivise DCC’s contract management and procurement as part of the revised OPR regime in May 2020. Stakeholders responded largely in favour of the Authority’s proposals, and in October 2020 the Authority published its decision to implement a Contract Management Incentive. This incentive aims to improve DCC’s performance in contract management and procurement to drive efficiencies on DCC’s external costs, and ultimately savings for DCC’s customers. It is intended to operate as an annual independent audit of DCC’s contract and commercial management and procurement activities, using the assessment criteria and scoring framework as set out in the National Audit Office (NAO) framework.
The audit will run on an annual cycle alongside the Authority’s annual price control process and is expected to have four main stages: evaluation, reporting, consultation and decision. The evaluation stage is expected to take six weeks, with the successful tenderer producing an interim report for DCC to provide comment. In this stage, the successful tenderer will need to assess DCC’s commercial activity over the course of a Regulatory Year to provide a score and rationale against each supporting question against the NAO Framework, covering contract management, procurement and re-procurement. For more details on the scope and timelines refer to Annex A.
In the reporting stage the successful tenderer will produce a draft report to the Authority. This report will include the successful tenderer’s assessment of the level of attainment DCC has reached for each supporting question under the NAO Framework with a clear rationale for each score. The Authority will review the report and may require further iteration after which the final report will be produced. In the consultation stage, the Authority will publish a summary of the report findings no action from the successful tenderer will be required at this stage.
In the decision stage, the Authority will consider responses from stakeholders on the consultation and determine DCC’s retained margin under the Contract Management Incentive. The Authority may ask the successful tenderer for further clarification around the scores during this stage.
Further information on the requirement can be found within the specification attachment in Annex A within the 2024-082 ITT document.
II.2.5) Award criteria
Criteria below:
Quality criterion: Technical
/ Weighting: 70
Quality criterion: Commercial
/ Weighting: 30
Price
/ Weighting:
30
II.2.6) Estimated value
Value excluding VAT:
360 000.00
GBP
II.2.7) Duration of the contract, framework agreement or dynamic purchasing system
Start:
01/04/2025
End:
31/03/2028
This contract is subject to renewal: No
II.2.9) Information about the limits on the number of candidates to be invited
II.2.10) Information about variants
Variants will be accepted:
No
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
II.2.14) Additional information
Please refer to the 2024-082 ITT document for further information
Section III: Legal, economic, financial and technical information
III.1) Conditions for participation
III.1.1) Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers
List and brief description of conditions:
Please refer to the 2024-082 ITT document for further information
III.1.2) Economic and financial standing
List and brief description of selection criteria:
For further information please see attached 2024-082 Audit of Data Communications Company ITT
III.1.3) Technical and professional ability
List and brief description of selection criteria:
Please see attached 2024-082 Audit of Data Communications Company ITT for further details.
III.2) Conditions related to the contract
III.2.2) Contract performance conditions
Please refer to the 2024-082 ITT document for further information
III.2.3) Information about staff responsible for the performance of the contract
Obligation to indicate the names and professional qualifications of the staff assigned to performing the contract
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Open procedure
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
IV.2) Administrative information
IV.2.1) Previous publication concerning this procedure
Notice number in the OJ S:
2024/S 000-017140
IV.2.2) Time limit for receipt of tenders or requests to participate
Date:
20/12/2024
Local time: 12:00
IV.2.4) Languages in which tenders or requests to participate may be submitted
EN
IV.2.6) Minimum time frame during which the tenderer must maintain the tender
Tender must be valid until:
21/04/2025
IV.2.7) Conditions for opening of tenders
Date:
20/12/2024
Local time: 12:00
Section VI: Complementary information
VI.1) Information about recurrence
This is a recurrent procurement:
No
VI.2) Information about electronic workflows
Electronic invoicing will be accepted
Electronic payment will be used
VI.3) Additional information
Please see attached 2024-082 Audit of Data Communications Company ITT for further details.
NOTE: To register your interest in this notice and obtain any additional information please visit the myTenders Web Site at
https://www.mytenders.co.uk/Search/Search_Switch.aspx?ID=224806.
The buyer has indicated that it will accept electronic responses to this notice via the Postbox facility. A user guide is available at
https://www.mytenders.co.uk/sitehelp/help_guides.aspx.
Suppliers are advised to allow adequate time for uploading documents and to dispatch the electronic response well in advance of the
closing time to avoid any last minute problems.
NOTE: To register your interest in this notice and obtain any additional information please visit the myTenders Web Site at https://www.mytenders.co.uk/Search/Search_Switch.aspx?ID=233314.
The buyer has indicated that it will accept electronic responses to this notice via the Postbox facility. A user guide is available at https://www.mytenders.co.uk/sitehelp/help_guides.aspx.
Suppliers are advised to allow adequate time for uploading documents and to dispatch the electronic response well in advance of the closing time to avoid any last minute problems.
(MT Ref:233314)
VI.4) Procedures for review
VI.4.1) Review body
Public Procurement Review Service
Cabinet Office
London
UK
Telephone: +44 3450103503
E-mail: publicprocurementreview@cabinetoffice.gov.uk
Internet address(es)
URL: https://www.gov.uk/government/publications/public-procurement-review-service-scope-and-remit
VI.5) Date of dispatch of this notice
26/11/2024