Scope
Reference
2025-011
Description
The OFTO team requires a benchmarking advisor to provide support on OFTO transactions and ensure that the most competitive pricing of any financial instrument is achieved at financial close. The advisor will need to demonstrate that a clear and transparent process is followed in arriving at this pricing. They will also ensure that the terms of financing of the three projects within Tender Round 10 (TR10), one project in Tender Round 11 (TR11), one project in Tender Round 12 (TR12) and three projects in Tender Round 13 (TR13) are favourable for consumers. Ofgem do plan on extending this work to Tender Round 14 (TR14) but the scope of this work is not yet known. The supplier shall provide expert advice on the hedging process up to and at Financial Close (FC) on TR10, TR11, TR12, TR13 and TR14.
The scope of work is as follows:
* Review the structure of the interest rate and inflation hedging profiles and calculations and confirm that this is an acceptable structure or alternatively provide review of the structuring of underlying GILT for pricing any public bond.
* Provide indicative market pricing/updated pricing on all hedging and underlying GILT on request to ensure the most competitive rates are achieved.
* Proactive alerts on material market movements which may impact the pricing, including forewarning of any market activity which may create volatility and advise on how to manage this.
* Agree hedge term sheets/model outputs with the hedge providers where necessary.
* Provide/review the proposed execution protocol for the required hedging and/or bond issuance and negotiate this protocol with the hedge bank(s)/providers as necessary.
* Undertake offline benchmark pricing exercises to establish mid-market levels and ensure pricing is agreed as a margin over mid-level.
* Identify any anomalies which may indicate additional margins for the hedge providers.
* Coordinate dry run pricing leading up to the FC and manage a series of 'dry runs' with all relevant parties, including but not limited to Ofgem and its financial adviser(s)plus the FC execution call.
* Advisors are also required to liaise directly with Ofgem on any issues identified.
Total value (estimated)
- £290,807.47 including VAT
Above the relevant threshold
Contract dates (estimated)
- 25 August 2025 to 24 August 2028
- Possible extension to 24 August 2030
- 5 years
Description of possible extension:
The option to extend for up to 2 x 12 month periods until 24th August 2030
Main procurement category
Services
CPV classifications
- 79212100 - Financial auditing services
- 79212000 - Auditing services
- 79412000 - Financial management consultancy services
- 79410000 - Business and management consultancy services
- 66000000 - Financial and insurance services
- 48812000 - Financial information systems
Contract locations
- UK - United Kingdom
Participation
Legal and financial capacity conditions of participation
Further information will be included within the tender documentation once finalised.
Technical ability conditions of participation
Further information will be included within the tender documentation once finalised.
Particular suitability
Small and medium-sized enterprises (SME)
Submission
Publication date of tender notice (estimated)
30 May 2025
Enquiry deadline
23 May 2025, 12:00pm
Tender submission deadline
26 June 2025, 12:00pm
Submission address and any special instructions
Tenders and all associated documents required as part of the tender submission must be submitted BEFORE 12noon on the date of tender closing for a supplier's offer to be deemed compliant.
Tenders may be submitted electronically
Yes
Languages that may be used for submission
English
Award decision date (estimated)
4 August 2025
Recurring procurement
Publication date of next tender notice (estimated): 28 February 2030
Award criteria
| Name | Type | Weighting |
|---|---|---|
| Technical Weighting | Quality | 60.00% |
| Commercial Weighting | Price | 40.00% |
Other information
Payment terms
Invoices must be sent to invoices@ofgem.gov.uk and contain the relevant Con / Spec number (2025-011) and Purchase Order number.
Payment will be made via BACS to the bank details provided by the supplier.
Procedure
Procedure type
Open procedure
Documents
Associated tender documents
http://www.mytenders.co.uk
The tender documents will be available from the mytenders website when published.
Contracting authority
Ofgem
- Public Procurement Organisation Number: PWXD-5991-LZZP
10 South Colonnade
London
E14 4PU
United Kingdom
Contact name: Alfie Ellis
Telephone: +44 2079013089
Email: procurement2@ofgem.gov.uk
Website: http://www.ofgem.gov.uk
Region: UKI42 - Tower Hamlets
Organisation type: Public authority - sub-central government