Planning

Price Review 2024 Professional services – Prior Information Notice

  • Water Services Regulation Authority (Ofwat)

F01: Prior information notice (prior information only)

Notice identifier: 2022/S 000-018070

Procurement identifier (OCID): ocds-h6vhtk-034d3d

Published 1 July 2022, 4:08pm



Section one: Contracting authority

one.1) Name and addresses

Water Services Regulation Authority (Ofwat)

Centre City Tower, 7 Hill Street

Birmingham

B5 4UA

Email

pr24.pmo@ofwat.gov.uk

Telephone

+44 1216447534

Country

United Kingdom

NUTS code

UK - United Kingdom

Internet address(es)

Main address

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

Buyer's address

https://www.mytenders.co.uk/search/Search_AuthProfile.aspx?ID=AA24607

one.2) Information about joint procurement

The contract is awarded by a central purchasing body

one.3) Communication

Additional information can be obtained from the above-mentioned address

one.4) Type of the contracting authority

Body governed by public law

one.5) Main activity

Other activity

Economic regulatory of the water industry - England and Wales


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Price Review 2024 Professional services – Prior Information Notice

Reference number

PROC.01.0754

two.1.2) Main CPV code

  • 65000000 - Public utilities

two.1.3) Type of contract

Services

two.1.4) Short description

Ofwat intends to publish an invitation to tender in September 2022 for professional services relating to economics, engineering and management consultant expertise to help us deliver our Price Review 2024 (PR24). The intention is to have the contract in place for Spring 2023, a core team established by April 2023 and full ramp-up in Autumn 2023 prior to business plan submission on 2 October 2023.

two.1.5) Estimated total value

Value excluding VAT: £1,000,000

two.1.6) Information about lots

This contract is divided into lots: No

two.2) Description

two.2.3) Place of performance

NUTS codes
  • UK - United Kingdom

two.2.4) Description of the procurement

Procurement timeline

Ofwat intends to publish an invitation to tender in September 2022 for professional services relating to economics, engineering and management consultant expertise to help us deliver our Price Review 2024 (PR24). The intention is to have the contract in place for Spring 2023, a core team established by April 2023 and full ramp-up in Autumn 2023 prior to business plan submission on 2 October 2023.

What a Price Review is

Ofwat is the economic regulator of the water and wastewater sector in England and Wales. One of the ways we regulate is to set the price, investment, and service package that customers receive. Monopoly water companies, working with their customers, will develop business plans to cover the period of the next price control (2025-2029). Our role is to:

set the framework and methodology

check and challenge the company’s business plans, and

determine the five-year price, service and incentive package for each company

The problem that we intend to solve

During the final determination stage of the price review, from September 2023 to December 2024, our outputs as a regulator will increase significantly. As part of our resourcing solution, we want to procure flexible resourcing options from the private sector to help with the peaks of activity. They will also provide additional skills in regulatory and corporate finance and tax, engineering, economics, financial modelling and regulatory policy advice. By way of an example of the issue we face, over the course of the 18-month contract from our last price review (PR19) our peak resource requirement from consultancy and engineering firms peaked at 31 staff members in one month but in others it was as low as 5 FTE.

The options that we are considering for PR24

There are currently two options we are considering to meet this requirement.

A consortium of companies with one acting as Lead

Two or three separate contracts with companies to cover the main areas of expertise that we require: economics, engineering and management consultancy.

Next steps

We will hold a workshop via MS Teams on 20 July 2022 before proceeding with the procurement process. Please let us know if you are interested in attending the event by emailing pr24.pmo@ofwat.gov.uk. We welcome questions and comments in advance and there will be a full Q&A session during the workshop.

two.3) Estimated date of publication of contract notice

30 July 2022


Section four. Procedure

four.1) Description

four.1.8) Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: No


Section six. Complementary information

six.3) Additional information

We will hold a workshop via MS Teams on 20 July 2022 before proceeding with the procurement process. Please let us know if you are interested in attending the event by emailing pr24.pmo@ofwat.gov.uk. We welcome questions and comments in advance and there will be a full Q&A session during the workshop.

NOTE: To register your interest in this notice and obtain any additional information please visit the myTenders Web Site at https://www.mytenders.co.uk/Search/Search_Switch.aspx?ID=226701.

(MT Ref:226701)