Tender

New Benchmarks for ASTI Cost Assessment

OFGEM

This public procurement record has 1 release in its history.

Tender

20 Sep 2023 at 16:45

Tender Notice
Summary of the contracting process

The buying organization, Ofgem, is seeking support to develop new benchmarked ranges for employee and employer indirect construction costs and risk to inform future Accelerated Strategic Transmission Investment (ASTI) cost assessment. The tender titled "New Benchmarks for ASTI Cost Assessment" falls under the industry category of business analysis consultancy services. This procurement process is currently in the tender stage, with a tender period ending on 11th October 2023. The contract period is scheduled from 31st October 2023 to 8th January 2024.

This tender opportunity presented by Ofgem can benefit businesses operating in the business analysis consultancy services sector. Small and medium-sized enterprises (SMEs) may find this opportunity particularly suitable. The contract value ranges from £80,000 to £100,000 GBP, offering a chance for growth and collaboration. Interested businesses should note the importance of addressing indirect cost categories and demonstrating expertise in supporting large infrastructure projects within tight timelines.

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Notice Information

Notice Title

New Benchmarks for ASTI Cost Assessment

Notice Description

Ofgem require support to develop new benchmarked ranges for employee and employer indirect construction costs and risk to inform future Accelerated Strategic Transmission Investment (ASTI) cost assessment. ASTI involves the assessment of 100m+ complex onshore transmission schemes that are deemed essential to achieving the Government's target of connecting an additional 50GW of wind by 2030. There are c. 26 projects to be reviewed over the next two to three years. Implementing ASTI therefore necessitates completing project cost assessments much more quickly than under current processes which can take between 9 and 12 months. ASTI reviews will need to be completed within 4 months. To achieve this, Ofgem's tools and methodologies need to become more mechanistic and top-down; assessing estimates against relevant and up to date benchmarks to identify any costs that are outside recognised normal ranges and require further investigation. The past 18 months have seen dramatic changes to the infrastructure project environment, with soaring demand, significant cost increases, elongated programmes and supply chain constraints. The appetite and ability to manage risk has also changed dramatically. As a result many of Ofgem's existing benchmarks no longer reflect the actual profile of market-tested project costs; updated benchmarks are therefore required. The emphasis of Ofgem's benchmarks also needs to change. As Ofgem is seeking to implement an accelerated, more targeted ...ut risk or inflation, or indirect categories vs. total direct costs). Benchmarks can be taken from actual costs on completed UK transmission infrastructure projects, European transmission infrastructure projects and general UK construction sector where the projects are considered of a comparable scope, value and complexity to those Ofgem will be assessing under ASTI. Specifically, Ofgem requires support to: * To co-ordinate engagement with the TOs to agree definitions for direct and indirect cost categories * To define and agree definitions for best practice, average and poor in relation to indirect cost categories vs. direct and anticipated final cost * To secure actual project cost data from UK Transmission Owners, UK construction sector and European Transmission Owners, utilising own databases wherever possible * Develop new benchmarked ranges for best practice, good, average and poor for indirect cost categories * Develop a spreadsheet tool to allow for quick comparison of estimated costs and their position relative to the new benchmarked ranges. A template model will be shared to assist with this process. As well as the above, other areas that Ofgem may look to consider and require further support on if time and funding allow includes: * A suite of standard direct cost unit rates for transmission infrastructure projects * A cost driver function to tailor ranges to High Voltage Alternating Current (HVAC) vs. High Voltage Direct Current (HVDC) projects

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-b5fd17-bf164c5f-ab63-438d-9e2e-436b18c7c34d
Publication Source
Contracts Finder
Latest Notice
https://www.contractsfinder.service.gov.uk/Notice/eadffd27-cd09-482b-934a-c4c828437327
Current Stage
Tender
All Stages
Tender

Procurement Classification

Notice Type
Tender Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Open
Procurement Method Details
Open procedure (below threshold)
Tender Suitability
SME
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

71 - Architectural, construction, engineering and inspection services

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

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

CPV Codes

71314000 - Energy and related services

72221000 - Business analysis consultancy services

79400000 - Business and management consultancy and related services

79410000 - Business and management consultancy services

79411100 - Business development consultancy services

79419000 - Evaluation consultancy services

Notice Value(s)

Tender Value
£100,000 £100K-£500K
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
20 Sep 20232 years ago
Submission Deadline
11 Oct 2023Expired
Future Notice Date
Not specified
Award Date
Not specified
Contract Period
31 Oct 2023 - 8 Jan 2024 1-6 months
Recurrence
Not specified

Notice Status

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

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
OFGEM
Contact Name
Lynsey Gordon
Contact Email
procurement2@ofgem.gov.uk
Contact Phone
+44 2079017000

Buyer Location

Locality
LONDON
Postcode
E14 4PU
Post Town
East London
Country
England
Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI4 Inner London - East
Small Region (ITL 3)
TLI42 Tower Hamlets
Delivery Location
Not specified
Local Authority
Tower Hamlets
Electoral Ward
Canary Wharf
Westminster Constituency
Poplar and Limehouse

Further Information

Notice Documents

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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