Award

Targeted Review of Defined Benefit Pensions and Financial Resilience

WATER SERVICES REGULATION AUTHORITY

This public procurement record has 2 releases in its history.

AwardUpdate

17 May 2018 at 14:11

Award Notice
Award

18 Apr 2018 at 15:25

Award Notice
Summary of the contracting process

The procurement process initiated by the Water Services Regulation Authority focuses on a tender titled "Targeted Review of Defined Benefit Pensions and Financial Resilience." This contract, within the consultancy services industry, is based in the West Midlands and London, England. It is currently in the award stage, having officially been awarded on 23rd February 2018, with a contract period running from 26th February 2018 to 31st March 2018. The procurement method used is selective, and this project has a total value of £70,000, with the end of the tender period recorded as 19th February 2018.

This tender presents opportunities for SMEs with expertise in financial management and pension consultancy services to compete. Businesses that can demonstrate capabilities in assessing pension schemes and providing consultancy in financial resilience, particularly those with experience in the water sector, would be well-suited to engage in this contract. The targeted nature of this review allows for a focused approach in addressing the specific needs of the water industry, making it an ideal opportunity for relevant firms seeking to expand their services in this domain.

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Notice Information

Notice Title

Targeted Review of Defined Benefit Pensions and Financial Resilience

Notice Description

The targeted review will consider: * How do pension scheme deficits as calculated under International Financial Reporting Standards (IFRS) compare to actuarial deficits calculated under a triennial actuarial valuation in absolute terms and variability? * Have companies used customer funding to the extent provided for at PR09 (and reaffirmed at PR14) to meet deficit repair costs since 2010? * What range of actions have companies taken to manage their exposures to pension liabilities, how effective have these measures been in managing risks and what else could companies have done? * How does the management of the pension deficit in the water sector compare with best practice approaches in other sectors? * What evidence is there that pension schemes have or are moving to CPI or CPIH as the inflation linkage? * Pension costs impact on financial resilience as they reduce the free cash available to meet a company's statutory obligations. A short repair period increases the pressure on free cash while a long period may result in action by the Pension Regulator. Does the essential service provided by water companies and economic regulation underpin the water sector's covenant for pension obligations and strengthen pension scheme resilience? * Rating agencies consider deficits when assessing credit ratings and effectively treat deficits as debt. How should deficits be considered when assessing a company's financial resilience? * Hypothetically, how would pension liabilities be considered under a special administration pursuant to the Water Industry Act 1991 (as amended)? * We would welcome additional comments from the contractors on areas to consider not covered by the above. Scope The scope of this work includes assessing published information on all 17 English and Welsh water and waste water companies' pension schemes and preparing an information request for all companies. Following this review selecting a number of companies which display a variety of actions in managing pension liabilities for further engagement and lead tele-conferences with the selected companies. The number of companies will not exceed 5. To consider and report on the specific questions set out in this ITT, relating to company behaviours and actions associated with pension deficits which have since 2009 been funded in part by customers.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-b5fd17-5a1aedae-4331-43ce-a897-e116a035f796
Publication Source
Contracts Finder
Latest Notice
https://www.contractsfinder.service.gov.uk/Notice/ac28e335-0373-44bc-b1d5-a060ebd3a1de
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Framework
Procurement Category
Services
Procurement Method
Selective
Procurement Method Details
Call-off from a framework agreement
Tender Suitability
SME
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

66 - Financial and insurance services

79 - Business services: law, marketing, consulting, recruitment, printing and security

CPV Codes

66523000 - Pension fund consultancy services

79412000 - Financial management consultancy services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
£70,000 Under £100K
Contracts Value
Not specified

Notice Dates

Publication Date
17 May 20187 years ago
Submission Deadline
19 Feb 2018Expired
Future Notice Date
Not specified
Award Date
23 Feb 20188 years ago
Contract Period
26 Feb 2018 - 31 Mar 2018 1-6 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
Contact Name
Not specified
Contact Email
mailbox@ofwat.gsi.gov.uk
Contact Phone
Not specified

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

BARNETT WADDINGHAM

Further Information

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts. 

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