Published date: 18 February 2020

Last edited date: 24 February 2020

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


Closing: 12 August 2019

Contract summary

Industry

  • Project management consultancy services - 72224000

Location of contract

West Midlands, London

Value of contract

£77,905

Procurement reference

PROC.01.0636

Published date

18 February 2020

Closing date

12 August 2019

Contract start date

6 September 2019

Contract end date

31 March 2020

Contract type

Service contract

Procedure type

Open procedure (below threshold)

Any interested supplier may submit a tender in response to an opportunity notice.

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

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

No

Description

The Supplier will be required to evaluate the bulk charges available to NAVs (waste and potable water) provided by the incumbent water companies, using publicly available information and information obtained from the incumbent water companies. The Supplier will then take a view of an appropriate cost base to use.
For 2019/20 only one small water only company is yet to publish NAV tariffs. Two companies (United Utilities and Yorkshire Water) have published indicative tariffs and are consulting before finalising. Initial analysis of the published NAV tariffs suggest that there is a broad range in the size of the wholesale margins being offered to NAVs and varying degrees of transparency as to how these margins have been determined.
Some NAVs have raised concerns that published NAV tariffs are inconsistent with incumbent water companies' existing tariffs, with the most extreme examples being NAV tariffs that are always higher than the Non-Household Tariff and others which are significantly worse than their 2018 NAV tariffs.

Other NAVs have argued that incumbent charges do not reflect geographic differences in costs of supplying services. These may not be captured within the charges to developers, or Bulk Charges.
There remains a number of unexplained variations in the application of NAV tariffs as the size of the connection (normally determined by number of connections) increases. The consultant must seek to understand the methodological differences as well as differences in actual cost, which drive the differences in margins both across companies and by relevant site specific criteria (typically site size/number of connections, but potentially also geographic location).

More information

Additional text

For Further Information ,please contact: procurement@ofwat.gov.uk

Award information

Awarded date

5 September 2019

Contract start date

6 September 2019

Contract end date

31 March 2020

Total value of contract

£77,905

This contract was awarded to 1 supplier.

Cambridge Economic Policy Associates Limited

Address

Queen's House
55-56 Lincoln's Inn Fields
London
WC2A 3LJ

Reference

Companies House number: 04077684

Supplier is SME?

Yes

Supplier is VCSE?

No

About the buyer

Address

Birmingham
Birmingham
B54UA
England

Email

mailbox@ofwat.gov.uk