Award

PR19 - Innovation and Efficiency Gains from the Totex Framework

WATER SERVICES REGULATION AUTHORITY

This public procurement record has 1 release in its history.

Award

11 Apr 2018 at 10:44

Award Notice
Summary of the contracting process

The procurement process titled "PR19 - Innovation and Efficiency Gains from the Totex Framework" was conducted by the Water Services Regulation Authority, located in Birmingham, England. This initiative falls under the services category, specifically business and management consultancy. The tender was originally planned as a selective procurement method with a call-off from a framework agreement, and it was in the award stage as of November 9, 2017. The contract period commenced on November 16, 2017, and concluded on March 30, 2018. The tender had an end date for submissions on October 30, 2017.

This tender presents significant opportunities for consultancy firms, particularly those specialising in business and management services within the water sector. Companies capable of demonstrating expertise in efficiency savings, benchmarking, and innovation implementation will be well-positioned to compete effectively. The focus on leveraging the totex approach and operational efficiency makes this an attractive opportunity for both small and medium enterprises (SMEs) and larger consultancies aiming to support water companies in enhancing their operational frameworks.

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Notice Information

Notice Title

PR19 - Innovation and Efficiency Gains from the Totex Framework

Notice Description

Objectives and Scope Since PR14 water companies and their suppliers have had time to gain experience and adapt to the totex and outcomes framework. Different companies have adapted to the new framework at different pace. For PR19, we consider that all water companies should be able to take full advantage of the new framework and deliver significant efficiency savings. The overall objectives of this work are to identify the potential scope and range for efficiency savings from the full utilisation of the totex and ODI approach. The principle objective of this work is to deliver a measure of efficiency challenge that Ofwat can apply to baseline costs at PR19. This is to be robust and supported by a broad range of evidence which the Contractor may collect from a variety of sources, amongst which may be: * Examining totex performance in the water sector, and particular examples of best practice of innovations and efficiency savings through using a totex approach. * Examining totex performance in the energy sector, and the potential scale of any outperformance that can be attributed to innovation and improved efficiency. * Examining cost performance in other sectors to identify the range of cost reductions that might be available, particularly where there have been significant changes such as cost shocks, competition and the introduction of price controls. * Examining the performance of other sectors abroad that either have or have introduced regimes similar to totex/ODIs. * Developing a conceptual bottom-up assessment, based on sound engineering principles, of the potential that totex/ODIs provide companies. We are seeking support to identify the potential scope and range for efficiency savings from the full utilisation of the totex approach in the water sector. The expenditure allowances we set to water companies are largely determined through cost benchmarking models which rely significantly on historical cost information. However, historical information will not reflect the full benefits of the totex approach. In setting efficient cost baselines for PR19, we are seeking to understand, what potential efficiency gains from the totex approach we might apply to our cost baselines for PR19. We think this work could be divided into two main tasks: Task 1: Evidence of savings from a totex approach Task 2: Potential application of totex savings to Ofwat's baselines for PR19

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-b5fd17-b6a83852-8a43-433e-8797-fdc8bec93984
Publication Source
Contracts Finder
Latest Notice
https://www.contractsfinder.service.gov.uk/Notice/6a3572f3-c53b-4ad0-afd6-e1c2f8516e2b
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

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

CPV Codes

79400000 - Business and management consultancy and related services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
£105,500 £100K-£500K
Contracts Value
Not specified

Notice Dates

Publication Date
11 Apr 20187 years ago
Submission Deadline
30 Oct 2017Expired
Future Notice Date
Not specified
Award Date
9 Nov 20178 years ago
Contract Period
16 Nov 2017 - 30 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
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

KPMG

Further Information

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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