Published date: 10 August 2022

This notice was replaced on 29 September 2022

This notice does not contain the most up-to-date information about this procurement. The most recent notice is:

Awarded contract (published 29 September 2022)

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.


Contract summary

Industry

  • Business and management consultancy and related services - 79400000

Location of contract

United Kingdom

Value of contract

£90,000

Procurement reference

ORR/CT/22-22

Published date

10 August 2022

Closing date

7 September 2022

Closing time

10am

Contract start date

26 September 2022

Contract end date

16 January 2023

Contract type

Service contract

Procedure type

Open procedure (above threshold)

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

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

The ORR has recently begun its 2023 periodic review of Network Rail covering the five years from April 2024 to March 2029. A central element of every periodic review is a cost assessment whereby ORR determines the appropriate level of expenditure required to deliver the outputs set by funders.

The System Cost & Efficiency team is part of the Capital Investment, Enhancements, Engineering and Asset Management team in ORR and is focussed on achieving an efficient cost assessment as part of the PR23 process.

Network Rail delivered round 4.5 of its plan to ORR in Mar 22. This was the final top-down plan and Network Rail has now moved to round 5.0, the first stage of bottom-up planning. ORR will not receive this plan, but wishes to gain confidence that risk and uncertainty is adequately considered as part of Network Rail plans and therefore wishes to commission a study into the methodology used within Network Rail to develop its P(50) plan.

Currently an Independent Reporter piece of work is being conducted into the use of unit rates within Network Rail, an overview is shown below. The output from the Independent Reporter, when combined with the outputs described in section 2.3 will provide ORR with a holistic view of risk inherent within Network Rail planning processes.

Independent reporter: How are unit cost rates calculated and used

Background: Unit rates, when combined with the volumes of work to be undertaken, provide the key costing information for the renewals plan. Local and national rates often exist, their selection criteria is not always documented in Network Rail's Initial Business Plan (IBP) and their limitations / applicability need to be understood.

Why is this an issue: Unit rates are a key cost driver. Appropriate selection is imperative, national rates should be the composite average, as such, local rates, when combined should average out at the national rate. Should a more advantageous rate be selected for planning purposes additional (excessive) risk provision would be embedded in estimates.

Plan to address: Independent Reporter commissioned

What does "good" look like as an outcome for ORR: Clear understanding of the statistical significance of local / national unit rates and their applicability / selection criteria. An understanding of the adherence to these criteria, allows a quantitative view of embedded risk.

More information

Attachments

Additional text

The tender exercise is being managed via the ORR Procurement portal (BRAVO). All tender clarification questions must be raised via the portal.

About the buyer

Contact name

Harriet Dinkele

Address

25 Cabot Square
London
E144QZ
England

Telephone

02072823944

Email

procurementteam@orr.gov.uk