Award

Allocation of risk

WATER SERVICES REGULATION AUTHORITY (OFWAT)

This public procurement record has 1 release in its history.

Award

15 Nov 2021 at 18:00

Award Notice
Summary of the contracting process

The Water Services Regulation Authority (Ofwat) is conducting a procurement process titled "Allocation of risk," focused on general management consultancy services. The contract, valued at £116,850, is based in the United Kingdom, with delivery addresses in the West Midlands and London. This procurement is currently in the Award stage, following an open method procedure. The contract period is set to begin on 1st February 2021 and conclude on 16th April 2021. It is important to note that the tender period has ended.

This tender presents significant opportunities for SMEs in the consultancy sector, particularly those with expertise in risk management and regulatory frameworks related to water services. Businesses that can demonstrate an understanding of cost control mechanisms and outcome-oriented strategies, as employed by Ofwat, will be particularly well-suited to compete for this contract. Engaging in this process could allow these firms to establish a stronger foothold in public sector consulting, potentially leading to future contracts in related areas.

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Notice Information

Notice Title

Allocation of risk

Notice Description

A range of external factors impact on water company costs and outcomes. These include, for example, changes input prices and wages, the impacts of the weather and inflation. Internal management can also impact directly on costs and outcomes, by affecting the efficiency of the business, and can also act to mitigating some of the impacts of external factors. Ofwat's price review framework has a number of mechanisms to share these risks between companies and consumers. This aims to encourage companies to control costs and outcomes where they can, but also to limit their exposure to risks where they have limited control over them. The mechanisms currently in use in PR19 include: Interim determination provisions in companies' licences, which allow us to change revenues in certain circumstances if particular thresholds are met including IDoKs (Interim Determination of K), SFE (Substantial Favourable Effect) and SAE (Substantial Adverse Effect) Reconciliation mechanisms which, for example, pass through changes in real price effects and tax to consumers. Inflation indexation of debt, revenues and the RCV (Regulatory Capital Value) which aim to pass through inflation impacts to consumers Cost sharing arrangements which share the impact of any cost overruns or underspends between companies and consumers. The outcomes framework which provides incentives for companies to hit their Performance Commitment Levels (PCLs) and to go further which incentivise companies to manage the impact of external factors (for example by improving resilience). In some cases, deadbands can be used to limit companies' exposure over a certain range. Collars also mitigate companies' exposure to very rare events, while caps limit customers' exposure to increases in bills. The gearing sharing outperformance mechanism aims to align incentives of company to take account of consumers' interests in financial structures and better protect customers from risky structures. Additional information: For further information, please contact procurement@ofwat.gov.uk

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-b5fd17-916a8867-1b1f-430e-978b-57479fd94278
Publication Source
Contracts Finder
Latest Notice
https://www.contractsfinder.service.gov.uk/Notice/a783bc73-f1a7-428a-8043-4525c785f671
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

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

CPV Codes

79411000 - General management consultancy services

Notice Value(s)

Tender Value
£116,850 £100K-£500K
Lots Value
Not specified
Awards Value
£116,850 £100K-£500K
Contracts Value
Not specified

Notice Dates

Publication Date
15 Nov 20214 years ago
Submission Deadline
15 Jan 2020Expired
Future Notice Date
Not specified
Award Date
29 Jan 20215 years ago
Contract Period
1 Feb 2021 - 16 Apr 2021 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 (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

CEPA

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

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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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