Published date: 22 January 2020

Closed opportunity - This means that the contract is currently closed. The buying department may be considering suppliers that have already applied, or no suitable offers were made.


Closing: 19 February 2020

Contract summary

Industry

  • Infrastructure works consultancy services - 71311300

Location of contract

West Midlands, London

Value of contract

£50,000 to £70,000

Procurement reference

MT218696

Published date

22 January 2020

Closing date

19 February 2020

Contract start date

4 March 2020

Contract end date

3 September 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 aim of this project is to develop proposals for commercial contracts and pricing to support the successful delivery of RAPID's goals and objectives. These are:
1. Ensure the timely and co-ordinated development of strategic water resources infrastructure schemes so that they are construction-ready early in the 2025-30 period, through;
- More collaboration - Improving the sector's collaboration on water resources planning. By 2025, ensuring that enduring arrangements are agreed for strategic water resources infrastructure.
- Best value not least cost - Improving the evaluation of the full potential and impacts of schemes so that the best value portfolio of solutions is developed.
- Stakeholders are bought-in - Ensuring that stakeholders better understand the costs and benefits of the available options and demonstrating that the scheme assessment and selection process is transparent, fair and equitable.
- Commercially relevant - Supporting the development of commercial frameworks for construction, operation and maintenance of schemes. Aligning with and supporting the aims of DPC (Direct Procurement for Customers).
- Timely progress - Dynamically monitoring progress of the portfolio of strategic schemes.
2. Provide leadership and momentum to recommend a future-proof regulatory framework that best supports the vision on an enduring basis, through;
- Proactive - Developing recommendations for regulatory frameworks for strategic infrastructure schemes in time...on of how third party delivery including Direct Procurement for Customers (DPC) should be included.
Key tasks part two: Contract Pricing
- Assess and make recommendations about the most appropriate approach to value and ultimately price water transfers.
- Consider and set out the relative strengths and weaknesses of different approaches to establishing prices recognising there exists a range of approaches and range of potential market participants beyond the incumbent providers.
- Set out proposals for the establishment of a consistent approach to pricing that could be developed and applied more widely to future strategic infrastructure.
- Specifically consider the circumstances where the Bulk Supply Contract and associated revenue is facilitating the development and delivery of the infrastructure (including an assessment of the approach implemented for Havant Thicket).
- Assess issues and approaches to the valuation and pricing of counterparty risks
- Benchmark and assess the potential for contractual and pricing approaches in other sectors to be applied to strategic water infrastructure.
- Consider the impact of sustainability changes and the current abstraction licencing regime and how these risks could be valued and priced into contracts.
- Develop a roadmap setting out the steps for how to move from current ad hoc arrangements to a well-functioning market including the potential for market codes and a centralised market trading platform and/or system.

More information

Links

About the buyer

Contact name

Marek Hammond

Address

Centre City Tower
7 Hill Street
Birmingham
B5 4UA

England

Telephone

+44 1216447500

Email

marek.hammond@ofwat.gov.uk

Website

http://www.ofwat.gov.uk/