Published date: 17 August 2018

Awarded contract - This means that the contract has been awarded to a supplier.


Closing: 26 March 2018

Contract summary

Industry

  • Services furnished by professional organisations - 98112000

Location of contract

West Midlands, London

Value of contract

£7,844,625

Procurement reference

PROC.01.0516 Contract Awarded

Published date

17 August 2018

Closing date

26 March 2018

Contract start date

5 July 2018

Contract end date

31 January 2020

Contract type

Supply contract

Procedure type

Restricted procedure (above threshold)

A two-stage procedure, where the first stage is used to select suppliers, who are then invited to bid in the second stage.

This procedure can be used for procurements above the relevant contract value threshold.

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

No

Description

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 encourage the Delivery Partner to commit to the overall success of PR19 and meet agreed standards of performance.

More information

Attachments

Additional text

For further information, please contact: procurement@ofwat.gsi.gov.uk

This Contract relates to Contract Notice: 2018/S 005 - 007208

Award information

Awarded date

4 July 2018

Contract start date

5 July 2018

Contract end date

31 January 2020

Total value of contract

£7,844,625

This contract was awarded to 1 supplier.

PRICEWATERHOUSECOOPERS

Address

1 EMBANKMENT PL
WC2N 6RH
GB

Reference

Companies House number: OC303525

Value of contract

£7,844,625

Supplier is SME?

No

Supplier is VCSE?

No

About the buyer

Address

Centre City Tower
7 Hill Street
Birmingham
B5 4UA
England

Email

mailbox@ofwat.gsi.gov.uk