Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
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.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
Professional Advisory Services to Support OFGEM’s OFTO Team
Reference number: 2021-071
II.1.2) Main CPV code
79410000
II.1.3) Type of contract
Services
II.1.4) Short description
OFTO licences, granted through the competitive process, confer certain rights and responsibilities on OFTOs, including the right to a regulated revenue stream for a defined period in return for provision of transmission services.
Through the tender process, interested parties have the opportunity to bid to become an OFTO. The offshore transmission assets that the OFTO takes ownership of are acquired at a transfer value determined by the Authority. Following transfer of ownership, the OFTO owns and manages the transmission assets (including the cables and associated connection equipment) between the offshore point of connection with the generator and the point of connection with the onshore network.
Following the transfer of ownership, the OFTO is required to comply with the licence conditions. The revenue stream also includes mechanisms which adjust the OFTO’s regulated revenue stream for certain ‘pass-through’ items. The Income Adjusting Event (IAE) is one such ‘pass-through’ revenue adjustment mechanism for costs and expenses that have arisen during the revenue term, for example, due to fault or failure of the system (subject to defined pre-requisites), or at the Authority’s discretion. The Authority is responsible for the decision-making when such claims are made. Other policy development and enforcement actions may also be required during the revenue stream.
This procurement is seeking expert consultancy services to support decision-making and policy development for all such requirements in the regime.
II.1.6) Information about lots
This contract is divided into lots:
Yes
II.1.7) Total value of the procurement
Value excluding VAT:
9 000 000.00
GBP
II.2) Description
Lot No: 1
II.2.1) Title
Financial Advisors
II.2.2) Additional CPV code(s)
66171000
66170000
72224000
72221000
79400000
79411000
79412000
79419000
II.2.3) Place of performance
NUTS code:
UK
II.2.4) Description of the procurement
The primary responsibility of the financial advisors, is to assist Ofgem in running an efficient tender and transaction process. This will include preparatory work in advance of the Tender Rounds and evaluating bid submissions in coordination with other appointed technical and insurance advisors. This is to ensure that the most economically advantageous tender is selected. The Preferred Bidder (PB) will then proceed to the transaction stage where Ofgem will require further support to aid the process to Licence Grant (LG) and Financial Close (FC). Effective transfer of knowledge on each stage of the process along with general advice on lessons learned is also required.
All advisors will work collaboratively in the EPQ (Enhanced Pre-Qualification) and ITT (Invitation to Tender) stages. The financial advisor will be fulfilling the role of Lead Evaluator for both the stages, acting as a single point of contact for the Authority, bringing together all of the evaluation sections/reports into final integrated reports.
Further information can be found in the ITT document
II.2.5) Award criteria
Quality criterion: Technical
/ Weighting: 55
Price
/ Weighting:
45
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
Lot No: 2
II.2.1) Title
Technical Advisors
II.2.2) Additional CPV code(s)
71621000
71600000
72221000
72224000
79400000
79411000
79411100
79419000
II.2.3) Place of performance
NUTS code:
UK
II.2.4) Description of the procurement
The primary responsibility of the technical advisors, is to assist Ofgem in running an efficient tender and transaction process. This will include preparatory work in advance of the Tender Rounds and evaluating bid submissions in coordination with other appointed financial and insurance advisors. This is to ensure that the most economically advantageous tender is selected and the Preferred Bidder (PB) will then proceed to the transaction stage where Ofgem may require further support to aid the process to Licence Grant (LG) and Financial Close (FC). Effective transfer of knowledge on each stage of the process along with general advice on lessons learned is also required.
All advisors will work collaboratively in the EPQ (Enhanced Pre-Qualification) and ITT (Invitation to Tender) stages. The financial advisor will be fulfilling the role of Lead Evaluator for both the stages, acting as a single point of contact for the Authority, bringing together all of the evaluation sections/reports into final integrated reports. It is expected that all Advisors supporting specific tender processes will coordinate the production within the timescales communicated by Ofgem. In order to achieve this, the lead evaluator will likely set earlier deadlines by which they require all outputs for them to present integrated reports.
II.2.5) Award criteria
Quality criterion: Technical
/ Weighting: 55
Price
/ Weighting:
45
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
Lot No: 3
II.2.1) Title
Insurance Advisors
II.2.2) Additional CPV code(s)
66000000
66510000
66518000
66518100
66518200
66519310
II.2.3) Place of performance
NUTS code:
UK
II.2.4) Description of the procurement
The primary responsibility of the Insurance advisors, is to assist Ofgem in running an efficient tender and transaction process. This will include preparatory work in advance of the Tender Rounds and evaluating bid submissions in coordination with other appointed technical and financial advisors. This is to ensure that the most economically advantageous tender is selected and the Preferred Bidder (PB) will then proceed to the transaction stage where Ofgem may require further support to aid the process to Licence Grant (LG) and Financial Close (FC).
Effective transfer of knowledge on each stage of the process along with general advice on lessons learned is also required
All advisors will work collaboratively in the Enhanced Pre-Qualification (EPQ) and Invitation to Tender (ITT) stages. The financial advisor will be fulfilling the role of Lead Evaluator for both the stages, acting as a single point of contact for the Authority, bringing together all of the evaluation sections/reports into final integrated reports. It is expected that all Advisors supporting specific tender processes will coordinate the production within the timescales communicated by Ofgem. In order to achieve this, the lead evaluator will likely set earlier deadlines by which they require all outputs for them to present integrated reports.
II.2.5) Award criteria
Quality criterion: Technical
/ Weighting: 55
Price
/ Weighting:
45
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
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Open procedure
IV.1.3) Information about a framework agreement or a dynamic purchasing system
The procurement involves the establishment of a framework agreement
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:
2021/S 000-021128
Section V: Award of contract
Lot No: 1
Title: Financial Advisors
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
10/01/2022
V.2.2) Information about tenders
Number of tenders received: 3
Number of tenders received from SMEs: 1
Number of tenders received from tenderers from EU Member States: 0
Number of tenders received from tenderers from non-EU Member States: 3
Number of tenders received by electronic means: 3
The contract has been awarded to a group of economic operators:
Yes
V.2.3) Name and address of the contractor
Smith Square Partners
Westminster Tower, 3 Albert Embankment
London
SE1 7SP
UK
NUTS: UKI32
The contractor is an SME:
Yes
V.2.3) Name and address of the contractor
Grant Thornton UK LLP
30 Finsbury Square
London
EC2A 1AG
UK
NUTS: UK
The contractor is an SME:
Yes
V.2.3) Name and address of the contractor
BDO LLP
55 Baker Street
London
W1U 7EU
UK
NUTS: UKI32
The contractor is an SME:
Yes
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:
: 6 520 000.00
GBP
V.2.5) Information about subcontracting
The contract is likely to be subcontracted
Value or proportion likely to be subcontracted to third parties
Value excluding VAT: 6 520 000.00 GBP
Proportion: 100 %
Short description of the part of the contract to be subcontracted:
Key Subcontractor 1
Name: Centrus Financial Advisors Limited
Registration number (if registered) 10203539
Role of Subcontractor: (corporate finance, debt, and capital markets advice)
Key Subcontractor 2
Name: CEPA LLP
Registration number (if registered) OC326074
Role of Subcontractor economic and policy advice
Key Subcontractor 3
Name: BDO LLP
Registration number: (if registered) OC305127
Role of Subcontractor: tax advice)
Key Subcontractor 4
Name: Grant Thornton UK LLP
Registration number: (if registered) OC307742
Role of Subcontractor: forensic accounting services
Section V: Award of contract
Lot No: 2
Title: Technical Advisors
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
11/01/2022
V.2.2) Information about tenders
Number of tenders received: 2
Number of tenders received from SMEs: 1
Number of tenders received from tenderers from EU Member States: 0
Number of tenders received from tenderers from non-EU Member States: 2
Number of tenders received by electronic means: 2
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Vinci Energies
Leycroft Rd,
Leicester
LE4 1ET
UK
NUTS: UK
The contractor is an SME:
Yes
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:
: 1 800 000.00
GBP
V.2.5) Information about subcontracting
Section V: Award of contract
Lot No: 3
Title: Insurance Advisors
A contract/lot is awarded:
No
V.1 Information on non-award
The contract/lot is not awarded
No tenders or requests to participate were received or all were rejected
Section VI: Complementary information
VI.3) Additional information
(MT Ref:225020)
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
14/01/2022