Award

Bulk Charges for New Appointments and Variations Regime (NAVs) in the Water Industry in England and Wales

WATER SERVICES REGULATION AUTHORITY (OFWAT)

This public procurement record has 2 releases in its history.

AwardUpdate

24 Feb 2020 at 10:34

Award Notice
Award

18 Feb 2020 at 11:35

Award Notice
Summary of the contracting process

The Water Services Regulation Authority (Ofwat) is overseeing a tender titled "Bulk Charges for New Appointments and Variations Regime (NAVs) in the Water Industry in England and Wales." This procurement process, classified under the main category of services and specifically within project management consultancy services, is currently complete. The contract, valued at £77,905, began on 6th September 2019 and will run until 31st March 2020. The procurement method used was an open procedure below threshold, and the tender period concluded on 12th August 2019. Deliveries are expected to occur in both the West Midlands and London regions.

This tender presents significant opportunities for businesses involved in project management consulting, particularly those with experience in the water industry and tariff evaluation processes. Companies that can analyse and evaluate pricing structures, as well as those familiar with nuances in cost differences across various water suppliers, will find themselves well-positioned to compete. The focus on transparency in pricing and the evaluation of wholesale margins can lead to further explorations and enhancements in consultancy services, supporting business growth in the water sector.

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Notice Information

Notice Title

Bulk Charges for New Appointments and Variations Regime (NAVs) in the Water Industry in England and Wales

Notice Description

The Supplier will be required to evaluate the bulk charges available to NAVs (waste and potable water) provided by the incumbent water companies, using publicly available information and information obtained from the incumbent water companies. The Supplier will then take a view of an appropriate cost base to use. For 2019/20 only one small water only company is yet to publish NAV tariffs. Two companies (United Utilities and Yorkshire Water) have published indicative tariffs and are consulting before finalising. Initial analysis of the published NAV tariffs suggest that there is a broad range in the size of the wholesale margins being offered to NAVs and varying degrees of transparency as to how these margins have been determined. Some NAVs have raised concerns that published NAV tariffs are inconsistent with incumbent water companies' existing tariffs, with the most extreme examples being NAV tariffs that are always higher than the Non-Household Tariff and others which are significantly worse than their 2018 NAV tariffs. Other NAVs have argued that incumbent charges do not reflect geographic differences in costs of supplying services. These may not be captured within the charges to developers, or Bulk Charges. There remains a number of unexplained variations in the application of NAV tariffs as the size of the connection (normally determined by number of connections) increases. The consultant must seek to understand the methodological differences as well as differences in actual cost, which drive the differences in margins both across companies and by relevant site specific criteria (typically site size/number of connections, but potentially also geographic location). Additional information: For Further Information ,please contact: procurement@ofwat.gov.uk

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-b5fd17-119f43d7-7996-40e8-9725-33678e742491
Publication Source
Contracts Finder
Latest Notice
https://www.contractsfinder.service.gov.uk/Notice/3b373239-5f9e-43c9-a468-5c9dc13e31ad
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Open
Procurement Method Details
Open procedure (below threshold)
Tender Suitability
SME
Awardee Scale
SME

Common Procurement Vocabulary (CPV)

CPV Divisions

72 - IT services: consulting, software development, Internet and support

CPV Codes

72224000 - Project management consultancy services

Notice Value(s)

Tender Value
£77,905 Under £100K
Lots Value
Not specified
Awards Value
£77,905 Under £100K
Contracts Value
Not specified

Notice Dates

Publication Date
24 Feb 20206 years ago
Submission Deadline
12 Aug 2019Expired
Future Notice Date
Not specified
Award Date
4 Sep 20196 years ago
Contract Period
5 Sep 2019 - 31 Mar 2020 6-12 months
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Not Specified
Awards Status
Active
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
WATER SERVICES REGULATION AUTHORITY (OFWAT)
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
BIRMINGHAM
Postcode
B5 4UA
Post Town
Birmingham
Country
England
Major Region (ITL 1)
TLG West Midlands (England)
Basic Region (ITL 2)
TLG3 West Midlands
Small Region (ITL 3)
TLG31 Birmingham
Delivery Location
TLG West Midlands (England), TLI London
Local Authority
Birmingham
Electoral Ward
Ladywood
Westminster Constituency
Birmingham Ladywood

Supplier Information

Number of Suppliers
1
Supplier Name

CAMBRIDGE ECONOMIC POLICY ASSOCIATES

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

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