Award

Development of financial model compliant with FAST modelling standard

WATER SERVICES REGULATION AUTHORITY

This public procurement record has 3 releases in its history.

AwardUpdate

20 Mar 2017 at 16:26

AwardUpdate

03 Jan 2017 at 12:50

Award

25 Nov 2016 at 11:17

Summary of the contracting process

The WATER SERVICES REGULATION AUTHORITY is seeking to develop a financial model compliant with the FAST modelling standard. This procurement falls under the services category, specifically within the IT consulting and software development industry. The procurement process is in the Award stage, with the contract awarded to F1F9 UK Ltd, valued at £35,650. The official contract period extends from 22 November 2016 to 24 February 2017, and the tender period ended on 28 October 2016.

This tender presents significant opportunities for businesses involved in financial modelling and IT services, particularly for small and medium-sized enterprises (SMEs) with expertise in financial analysis, software development, and consulting. Companies capable of providing innovative solutions that align with regulatory requirements in the water sector, especially those familiar with the FAST modelling standard, would be ideally suited to compete for similar contracts in the future.

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Notice Title

Development of financial model compliant with FAST modelling standard

Notice Description

For PR14 Ofwat developed a financial model in partnership with PwC. The PR14 financial model had three purposes. * To determine the wholesale price controls. * To calculate the revenues arising from the retail price controls. * To help assess financeability of the appointee, with the ability to refine the wholesale price control limits until target financeability indicators are satisfied. The model went through significant development during the price review process, with six versions of the financial model being published. Ofwat has rebuilt the PR14 Financial Model in accordance with the FAST modelling standard. The rebuilt model replicates the core calculations of the PR14 financial model in a simpler structure. This model replicates very closely the allowed revenue and financeability indicator results from PR14. The design approach for the redesigned model uses a reduced set of live financial statements with phases turned on and off with 'flags'. The rebuilt model will provide a solid framework for implementing the modelling changes required to reflect Ofwat's developing Water 2020 methodology. Objectives and scope of the work The primary purpose of this work is to continue the development of the rebuilt, simplified, financial model in a way that is compliant with the FAST modelling standard. The work will cover the period November 2016 - 24 February 2017, the Project Manager will keep the timeframe under review and where necessary may opt to extend the timeframe. The work will focus on six areas: * RPI / CPI (H) - to enable the model to deal with two forms of indexation * Separate RCVs - Create multiple RCV accounts to track guaranteed balances and RPI and CPI(H) indexed balances * 4 x wholesale controls - Bifurcate water and wastewater controls. * Monte Carlo analysis - Establish architecture to implement @risk analysis of key variables. * Sensitivity analysis - Establish architecture for sensitivity analysis. * Improve notionalisation - PR14 used a lengthy process (detailed in the PR14 financial model user guide) to move from actual to notional capital structure. The aim of this work is to streamline this process. The model is expected to make minimal use of macros and to make minimal use of named ranges (in accordance with FAST standard "FAST 3.03-08").

Publication & Lifecycle

Open Contracting ID
ocds-b5fd17-c561a599-2b75-4629-a541-fcead1406e15
Publication Source
Contracts Finder
Latest Notice
https://www.contractsfinder.service.gov.uk/Notice/1478d546-a32b-47ca-a3e7-749bbaf2b881
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Not Specified
Procurement Method Details
Other -
Tender Suitability
SME
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

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


CPV Codes

72000000 - IT services: consulting, software development, Internet and support

Notice Value(s)

Tender Value
£35,650 Under £100K
Lots Value
Not specified
Awards Value
£35,650 Under £100K
Contracts Value
Not specified

Notice Dates

Publication Date
20 Mar 20178 years ago
Submission Deadline
28 Oct 2016Expired
Future Notice Date
Not specified
Award Date
21 Nov 20169 years ago
Contract Period
22 Nov 2016 - 24 Feb 2017 1-6 months
Recurrence
Not specified

Notice Status

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

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

F1F9

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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