Published date: 20 March 2017
Last edited date: 20 March 2017
Awarded contract - This means that the contract has been awarded to a supplier.
Contract summary
Industry
IT services: consulting, software development, Internet and support - 72000000
Location of contract
West Midlands, London
Value of contract
£35,650
Procurement reference
PROC.01.0531
Published date
20 March 2017
Closing date
28 October 2016
Contract start date
22 November 2016
Contract end date
24 February 2017
Contract type
Service contract
Procedure type
Other:
Contract is suitable for SMEs?
Yes
Contract is suitable for VCSEs?
No
Description
For PR14 Ofwat developed a financial model in partnership with PwC. The PR14 financial model had three purposes.
• To determine the wholesale price controls.
• To calculate the revenues arising from the retail price controls.
• To help assess financeability of the appointee, with the ability to refine the wholesale price control limits until target financeability indicators are satisfied.
The model went through significant development during the price review process, with six versions of the financial model being published.
Ofwat has rebuilt the PR14 Financial Model in accordance with the FAST modelling standard.
The rebuilt model replicates the core calculations of the PR14 financial model in a simpler structure. This model replicates very closely the allowed revenue and financeability indicator results from PR14. The design approach for the redesigned model uses a reduced set of live financial statements with phases turned on and off with 'flags'.
The rebuilt model will provide a solid framework for implementing the modelling changes required to reflect Ofwat's developing Water 2020 methodology.
Objectives and scope of the work
The primary purpose of this work is to continue the development of the rebuilt, simplified, financial model in a way that is compliant with the FAST modelling standard. The work will cover the period November 2016 - 24 February 2017, the Project Manager will keep the timeframe under review and where necessary may opt to extend the timeframe.
The work will focus on six areas:
• RPI / CPI (H) - to enable the model to deal with two forms of indexation
• Separate RCVs - Create multiple RCV accounts to track guaranteed balances and RPI and CPI(H) indexed balances
• 4 x wholesale controls - Bifurcate water and wastewater controls.
• Monte Carlo analysis - Establish architecture to implement @risk analysis of key variables.
• Sensitivity analysis - Establish architecture for sensitivity analysis.
• Improve notionalisation - PR14 used a lengthy process (detailed in the PR14 financial model user guide) to move from actual to notional capital structure. The aim of this work is to streamline this process.
The model is expected to make minimal use of macros and to make minimal use of named ranges (in accordance with FAST standard "FAST 3.03-08").
Award information
Awarded date
21 November 2016
Contract start date
22 November 2016
Contract end date
24 February 2017
Total value of contract
£35,650
This contract was awarded to 1 supplier.
F1F9 UK Ltd
Address
149 Church Road
Bath
BA2 5JNReference
None
Supplier is SME?
No
Supplier is VCSE?
No
About the buyer
Address
Centre City Tower
7 Hill Street
Birmingham
B5 4UA
England
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Closing: 28 October 2016
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