Social and other specific services – public contracts
Contract award notice
Section I: Contracting
authority
I.1) Name and addresses
Water Services Regulation Authority (Ofwat)
Centre City Tower, 7 Hill Street
Birmingham
B5 4UA
UK
Contact person: Lena Cluxton
Telephone: +44 1216447534
E-mail: procurement@ofwat.gov.uk
NUTS: UKG31
Internet address(es)
Main address: http://www.ofwat.gov.uk/
Address of the buyer profile: https://www.mytenders.co.uk/search/Search_AuthProfile.aspx?ID=AA24607
I.4) Type of the contracting authority
Other: Economic regulator
I.5) Main activity
Other: Non-ministerial government department
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Legal Panel
Reference number: PROC.01.0608
II.1.2) Main CPV code
79100000
II.1.3) Type of contract
Services
II.1.4) Short description
Legal Panel in relation to the Thames Tideway Tunnel and Ofwat’s Direct Procurement for Customers initiative
The procurement involves the establishment of a framework agreement for use by Ofwat only. It is anticipated that one (1)panel agreement will be awarded for Lot 1 — Thames Tideway Tunnel and up to four for Lot 2 — Ofwat’s Direct Procurement for Customers initiative.
This procurement relates to the legal services which are listed in Schedule 3 of the Public Contracts Regulations 2015 (PCR) 2015 as a specific service. This procurement is being conducted under the Light Touch Regime (‘LTR’) is therefore subject to limited regulation and will be conducted in accordance with regulations 74 to 76 PCR 2015.
Any agreement will be for a period of four (4) years in total.
II.1.6) Information about lots
This contract is divided into lots:
Yes
II.1.7) Total value of the procurement
Value excluding VAT:
1 000 000.00
GBP
II.2) Description
Lot No: 1
II.2.1) Title
Lot 1: Legal Advice in Relation to the Thames Tideway Tunnel
II.2.2) Additional CPV code(s)
79100000
79111000
II.2.3) Place of performance
NUTS code:
UKG31
UKI
Main site or place of performance:
London and Birmingham.
II.2.4) Description of the procurement
The Thames Tideway Tunnel (TTT) is the main tunnel component in Thames Water Utilities Ltd’s (Thames Water) solution for reducing overflows of untreated combined sewage into the river Thames, in order to achieve compliance with the Urban Waste Water Treatment Directive. The other components of the solution (which have already been completed) are the Lee Tunnel and upgrades at Beckton sewage treatment works.
The TTT was specified as an infrastructure project by the Secretary of State in June 2014 under the Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013 (SIP Regulations). The Thames Tideway Tunnel Project Specification Notice sets out the scope of the Project and required Thames Water to put the Project out to tender to be delivered by an infrastructure provider (IP). The preferred bidder in the IP procurement (Bazalgette Tunnel Ltd, now trading as Tideway), was announced by Thames Water on 13 July 2015. Tideway then became the party contracting with the main works contractors who had been procured by Thames Water in February 2015. These contracts were all finalised on 24 August 2015 and Ofwat issued Tideway with a Project Licence on the same day.
This contract is for the provision of legal advisory services to Ofwat’s legal and policy teams in relation to the TTT project and to support Ofwat in its regulation of Thames Water and Tideway in respect of the Project, in particular to ensure that the TTT is delivered at best value for Thames Water’s customers.
We are looking to award a single supplier panel agreement in relation to our work on the Thames Tideway Tunnel.
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
Lot 2 — Legal Advice to Ofwat in Relation to Projects Procured by Water Companies under Ofwat’s Direct Procurement for Customers Initiative
II.2.2) Additional CPV code(s)
79100000
79111000
II.2.3) Place of performance
NUTS code:
UKI
UKG31
Main site or place of performance:
London and Birmingham.
II.2.4) Description of the procurement
We are the economic regulator of the water and wastewater sector in England and Wales. Among other things, we regulate the price, investment and service packages that customers receive. For the 2019 price review (‘PR19’) water companies are developing business plans to cover the next price control period (2020-2025).
As part of our final PR19 methodology published in December 2017 we introduced the concept of direct procurement for customers (‘DPC’), a process for water companies to competitively tender for a third party to design, build, finance, operate and maintain key infrastructure. We expect water companies to consider the use of DPC for all large-scale enhancement projects that cost over GBP 100 m based on whole-life total expenditure. Each water company is expected to provide an assessment of the suitability of relevant schemes in their business plan which will be submitted to Ofwat in September 2018.
We want to ensure that where DPC is used:
— consumers’ interests are protected;
— value for money is achieved; and
— we are assured that water companies’ obligations will be met to an equivalent or better standard compared to a traditional delivery route.
Where a project is suitable for DPC, the water company concerned (not Ofwat) will run the procurement process. We will however provide oversight, will require water companies to follow our principles for procurement and contracting when undertaking DPC projects and will seek appropriate levels of assurance during the procurement process.
Our work will continue beyond PR19, which concludes in late 2019. Projects will be large, complex and long-term in nature. Contracts are generally expected, in addition to the initial construction period, to have an operational period of about 15-25 years. Water companies may not be ready to (or need to) begin procurement processes by 2020, depending on the tender model and the need for the project.
This contract is for the provision of expert legal advisory services to Ofwat in relation to DPC-related work. Robust legal advice will be required to enable us to carry out our oversight role in relation to DPC projects.
We are looking for support to help us:
— understand and engage with legal, commercial and contractual issues relating to DPC projects;
— manage the challenges in translating policy into practice; and
— take effective and robust decisions in relation to DPC projects.
We are looking to award three to four companies to the panel agreement to support our work in relation to projects procured by water companies under Ofwat’s Direct Procurement for Customers initiative.
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.2) Administrative information
IV.2.1) Previous publication concerning this procedure
Notice number in the OJ S:
2018/S 158-363159
Section V: Award of contract
Lot No: 1
Title: Lot 1: Legal Advice in Relation to the Thames Tideway Tunnel
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
25/02/2019
V.2.2) Information about tenders
Number of tenders received: 2
Number of tenders received from SMEs: 0
Number of tenders received from tenderers from EU Member States: 0
Number of tenders received from tenderers from non-EU Member States: 0
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
Shepherd and Wedderburn LLP
1 Exchange Crescent, Conference Square
Edinburgh
EH3 8UL
UK
Telephone: +44 1312289900
NUTS: UKM
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:
: 500 000.00
GBP
V.2.5) Information about subcontracting
Section V: Award of contract
Lot No: 2
Title: Lot 2: Legal Advice to Ofwat in Relation to Projects Procured by Water Companies under Ofwat’s Direct Procurement for Customers Initiative
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
25/04/2019
V.2.2) Information about tenders
Number of tenders received: 9
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: 0
Number of tenders received by electronic means: 9
The contract has been awarded to a group of economic operators:
Yes
V.2.3) Name and address of the contractor
Ashurst LLP
London Fruit and Wool Exchange, 1 Duval Square
London
E1 6PW
UK
Telephone: +44 2076381111
NUTS: UKI
The contractor is an SME:
No
V.2.3) Name and address of the contractor
Dentons UKMEA LLP
1 Fleet Place
London
EC4M 7WS
UK
Telephone: +44 2072467126
NUTS: UK
The contractor is an SME:
No
V.2.3) Name and address of the contractor
Sharpe Pritchard LLP
Elm Yard, 10-16 Elm Street
London
WC1X 0BJ
UK
Telephone: +44 2074054600
Fax: +44 2072422210
NUTS: UK
The contractor is an SME:
Yes
V.2.3) Name and address of the contractor
Gowling WLG (UK) LLP
4 More London Riverside
London
SE1 2AU
UK
Telephone: +44 3709031000
NUTS: UK
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:
: 500 000.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.3) Additional information
Estimate contract value is based on expenditure over the maximum contract duration of four (4) years. The value set out in section II.1.5) is the total estimated amount across both lots. We may exceed the values in section II.2.6), provided that we do not exceed the total value in section II.1.5). We cannot guarantee any business through this Agreement. Ofwat expressly reserves the right:
(i) not to award any contract as a result of the procurement process commenced by publication of this notice;
(ii) to make whatever changes it may see fit to the content and structure of the tendering competition and in no circumstances will Ofwat be liable for any costs incurred by the potential supplier.
Note: to register your interest in this notice and obtain any additional information please visit the myTenders website at (MT Ref:217001)
VI.4) Procedures for review
VI.4.1) Review body
Water Services Regulation Authority (Ofwat)
Centre City Tower, 7 Hill Street
Birmingham
B5 4UA
UK
Telephone: +44 1216447500
Fax: +44 1216447559
Internet address(es)
URL: http://www.ofwat.gov.uk/
VI.5) Date of dispatch of this notice
08/05/2020