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Summary

OCID:
Published by:: Water Services Regulation Authority (Ofwat)
Authority ID:: AA61249
Publication date:: 09 January 2018
Deadline date:: 08 February 2018
Notice type:: Contract Notice
Has documents:: No
Has SPD:: No
Has Carbon Reduction Plan:: N/A

Abstract

Ofwat is the economic regulator of the water and wastewater sector in England and Wales. One of the ways we regulate is to set the price, investment and service packages that customers receive.

Monopoly water companies, working with their customers, will develop business plans to cover the period of the next price control (2020-2025). Our role is to:

— set the framework and methodology,

— check and challenge the company’s business plans, and,

— set out our determinations on the five-year price, service and incentive package for each company.

Themes.

Our themes for PR19 are:

— great customer service,

— affordable bills,

— resilience; and,

— innovation.

Short videos on these themes are available on our website.

Key Milestones for PR19:

— September 2018 Submission of company business plans.

— January 2019 Publish initial assessment and categorization of business plans.

— March-July 2019 Publish draft determinations for companies.

— December 2019 Publish final determinations for all companies.

The Delivery Partner:

To help deliver PR19, we are seeking a Delivery Partner who will work collaboratively with us to provide support, analysis, advice, and knowledge sharing.

We expect the Delivery Partner will have the capacity and capability to deliver under Ofwat’s strategic direction, providing skills and expertise, in particular, to support peaks in our workload that we require for a fixed period of time.

At a high level, the Delivery Partner will be required to:

— have a working knowledge of the full range of issues arising in the context of price reviews in the water or wider utility sector,

— exercise sound judgment in supporting Ofwat in PR19, with appropriate checks and assurance - exercise sound judgment in supporting Ofwat in PR19, with appropriate checks and assurance,

— have sufficient resource with requisite skills and capabilities to support PR19,

— work in accordance with our values and the partnership principles in the contract,

— flexibly manage resources and deal with uncertainty and change,

— support our learning environment by sharing knowledge,

— manage the delivery of services at a capped price,

— have appropriate arrangements to protect our information, and,

— manage effectively any actual/perceived conflicts of interest.

Key disciplines:

We require the following skillsets:

— regulatory economics,

— engineering,

— corporate finance and tax,

— financial and cost modeling support.

We expect the work to involve assistance with the initial assessment of company business plans (as defined in the PR19 final methodology) and our draft and final determinations.

This includes but is not limited to:

— providing regulatory policy advice, e.g. assessment of customer perspectives, outcomes, affordability, resilience, board assurance, and the role of innovation,

— assessing efficient costs through economic cost modeling,

— engineering advice and value for money assessment of proposals for expenditure in company business plans,

— providing regulatory economics advice, e.g. incentive design,

— advising on the cost of capital and assessing financeability of companies, and,

— operating financial models and data capture from company submissions.

Contract:

— estimated contract start is May 2018, to allow the Delivery Partner to be involved in the development of processes and assurances before submission of company business plans in September 2018,

— the contract will then run until final determinations in December 2019, with a period of knowledge transfer and, if necessary, support for Ofwat in the event of any appeals to the Competition and Markets Authority (CMA) on final determinations.

— within the contract, we plan to use an incentive mechanism to en

Full notice text

Contract notice

Section I: Contracting authority

I.1) Name and addresses

Water Services Regulation Authority (Ofwat)

Centre City Tower, 7 Hill Street

Birmingham

B5 4UA

Contact person: Erica Williams

Telephone: +44 1216447500

E-mail: PR19DeliveryPartner@ofwat.gsi.gov.uk

Fax: +44 1216447559

NUTS: UKG31

Internet address(es)

Main address: https://www.ofwat.gov.uk

Address of the buyer profile: https://www.mytenders.co.uk/search/Search_AuthProfile.aspx?ID=AA24607

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

I.4) Type of the contracting authority

Body governed by public law

I.5) Main activity

Other: Economic Regulator

Section II: Object

II.1) Scope of the procurement

II.1.1) Title

Delivery Partner in support of the 2019 Price Review

Reference number: PROC.01.0516

II.1.2) Main CPV code

98112000

II.1.3) Type of contract

Services

II.1.4) Short description

Ofwat is seeking a Delivery Partner to work in partnership to support the delivery of PR19.

II.1.5) Estimated total value

Value excluding VAT: 8 000 000.00 GBP

II.1.6) Information about lots

This contract is divided into lots: No

II.2) Description

II.2.2) Additional CPV code(s)

98112000

II.2.3) Place of performance

NUTS code:

UKG31

UKI

Main site or place of performance:

Central Birmingham and Greater London.

II.2.4) Description of the procurement

Ofwat is the economic regulator of the water and wastewater sector in England and Wales. One of the ways we regulate is to set the price, investment and service packages that customers receive.

Monopoly water companies, working with their customers, will develop business plans to cover the period of the next price control (2020-2025). Our role is to:

— set the framework and methodology,

— check and challenge the company’s business plans, and,

— set out our determinations on the five-year price, service and incentive package for each company.

Themes.

Our themes for PR19 are:

— great customer service,

— affordable bills,

— resilience; and,

— innovation.

Short videos on these themes are available on our website.

Key Milestones for PR19:

— September 2018 Submission of company business plans.

— January 2019 Publish initial assessment and categorization of business plans.

— March-July 2019 Publish draft determinations for companies.

— December 2019 Publish final determinations for all companies.

The Delivery Partner:

To help deliver PR19, we are seeking a Delivery Partner who will work collaboratively with us to provide support, analysis, advice, and knowledge sharing.

At a high level, the Delivery Partner will be required to:

— have a working knowledge of the full range of issues arising in the context of price reviews in the water or wider utility sector,

— exercise sound judgment in supporting Ofwat in PR19, with appropriate checks and assurance - exercise sound judgment in supporting Ofwat in PR19, with appropriate checks and assurance,

— have sufficient resource with requisite skills and capabilities to support PR19,

— work in accordance with our values and the partnership principles in the contract,

— flexibly manage resources and deal with uncertainty and change,

— support our learning environment by sharing knowledge,

— manage the delivery of services at a capped price,

— have appropriate arrangements to protect our information, and,

— manage effectively any actual/perceived conflicts of interest.

Key disciplines:

We require the following skillsets:

— regulatory economics,

— engineering,

— corporate finance and tax,

— financial and cost modeling support.

We expect the work to involve assistance with the initial assessment of company business plans (as defined in the PR19 final methodology) and our draft and final determinations.

This includes but is not limited to:

— providing regulatory policy advice, e.g. assessment of customer perspectives, outcomes, affordability, resilience, board assurance, and the role of innovation,

— assessing efficient costs through economic cost modeling,

— engineering advice and value for money assessment of proposals for expenditure in company business plans,

— providing regulatory economics advice, e.g. incentive design,

— advising on the cost of capital and assessing financeability of companies, and,

— operating financial models and data capture from company submissions.

Contract:

— estimated contract start is May 2018, to allow the Delivery Partner to be involved in the development of processes and assurances before submission of company business plans in September 2018,

— within the contract, we plan to use an incentive mechanism to encourage the Delivery Partner to commit to the overall success of PR19 and meet agreed standards of performance.

II.2.5) Award criteria

Price is not the only award criterion and all criteria are stated only in the procurement documents

II.2.7) Duration of the contract, framework agreement or dynamic purchasing system

Start: 15/05/2018

End: 31/01/2020

This contract is subject to renewal: Yes

Description of renewals:

The main contract will run between circa May 2018 and circa January 2020. Ofwat may elect to extend the contract duration beyond January 2020 until the end of 2020, only in the event that one or more final determination is appealed to the CMA.

II.2.9) Information about the limits on the number of candidates to be invited

Envisaged number of candidates: 5

II.2.10) Information about variants

Variants will be accepted: Yes

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

Bidding Organisation:

We encourage interested parties to consider using SMEs through a consortium or subcontracting approaches to support delivery of the requirement.

To help facilitate networking for the purposes of establishing these arrangements, we have published a directory of interested parties, which is available on our website.

Section III: Legal, economic, financial and technical information

III.1) Conditions for participation

III.1.2) Economic and financial standing

Selection criteria as stated in the procurement documents

III.1.3) Technical and professional ability

Selection criteria as stated in the procurement documents

III.2) Conditions related to the contract

Section IV: Procedure

IV.1) Description

IV.1.1) Type of procedure

Restricted 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:

2017/S 194-398229

IV.2.2) Time limit for receipt of tenders or requests to participate

Date: 08/02/2018

Local time: 10:00

IV.2.3) Estimated date of dispatch of invitations to tender or to participate to selected candidates

Date: 26/02/2018

IV.2.4) Languages in which tenders or requests to participate may be submitted

IV.2.6) Minimum time frame during which the tenderer must maintain the tender

Duration in months: 3 (from the date stated for receipt of tender)

Section VI: Complementary information

VI.1) Information about recurrence

This is a recurrent procurement: No

VI.3) Additional information

Estimated Contract Value:

We currently estimate the initial contract value GBP 10,000,000 including any extension, expenses etc. and including VAT. In the event that we require support following one or more final determination being appealed to the CMA, this cost will be outside of the initial contract price.

The overall value will reflect the balance between internal and external resource requirements during the period of PR19.

NOTE: To register your interest in this notice and obtain any additional information please visit the myTenders website at:

— http://www.myTenders.org/Search/Search_Switch.aspx?ID=200875.

The buyer has indicated that it will accept electronic responses to this notice via the Postbox facility. A user guide is available at:

— http://www.myTenders.org/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:200875).

VI.4) Procedures for review

VI.4.1) Review body