Published date: 22 December 2017

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


Closing: 11 July 2017

Contract summary

Industry

  • Business and management consultancy and related services - 79400000

Location of contract

London

Value of contract

£0 to £189,905

Procurement reference

PROC.01.0569

Published date

22 December 2017

Closing date

11 July 2017

Contract start date

28 August 2017

Contract end date

8 December 2017

Contract type

Service contract

Procedure type

Call-off from a framework agreement

A mini-competition or direct purchase from a pre-established framework agreement.

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

No


Description

The objective of this work is to develop a suite of econometric cost models for our 2019 price controls. The models will provide a strong basis for setting an efficient cost allowance for water companies across the different price controls.

The work will take into consideration lessons learnt from our PR14 econometric modelling approach and the CMA final determination following the reference made by Bristol Water.

In developing the models we expect close collaboration between the Contractor and Ofwat's cost assessment team as well as with our academic advisors of the University of Leeds.

The Contractor will be required to deliver high quality analysis and recommendations to inform our decisions on cost assessment models for PR19. The Contractor will be required to deliver a report to support the Contractor's recommendations. We expect to publish key findings from this work alongside the final methodology in December 2017.

Scope of work
The project consists of three work packages which the Contractor should cost separately (see section 13):

Work package 1
• Develop cost assessment models for the water resources and water network plus controls.
• Review and critique models developed by the Customer for the bioresources, wastewater network plus and residential retail controls.

Work package 2
• Develop cost assessment models as above, as well as for the bioresources and wastewater network plus controls.
• Review and critique models developed by the Customer for the residential retail control.

Work package 3
• Develop cost assessment models as above, as well as for the residential retail control.

Our intention for PR19 is to have a suite of econometric cost models that benchmark costs at the aggregate (wholesale) level, as well as a set of more granular models. For example, models that benchmark and assess water treatment costs, treated water distribution costs, water resources costs etc.


More information

Attachments


Award information

Awarded date

18 August 2017

Contract start date

28 August 2017

Contract end date

8 December 2017

Total value of contract

£189,905

This contract was awarded to 1 supplier.

Cambridge Economic Policy Associates

Address

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

Reference

Companies House number: OC326074

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