Award

Investigation into Network Rail's risk modelling, embedded risk and uncertainty on PR23

OFFICE OF RAIL AND ROAD

This public procurement record has 2 releases in its history.

Award

29 Sep 2022 at 11:24

Award Notice
Tender

10 Aug 2022 at 15:50

Tender Notice
Summary of the contracting process

The Office of Rail and Road (ORR) has awarded a contract for the investigation into Network Rail's risk modelling, focusing on embedded risks and uncertainties for the PR23 period. The procurement stage was an open procedure below the threshold. The contract, valued at £78,900, has a contract period from 3rd October 2022 to 16th January 2023. The procurement was in the services category, with a tender period ending on 7th September 2022, and was supervised by the ORR Procurement portal (BRAVO).

This public procurement opportunity is suitable for small and medium-sized enterprises (SMEs) interested in business and management consultancy services. ORR's initiative creates prospects for companies involved in risk modelling, cost assessment, and consultancy services. Companies well-versed in statistical analysis, cost assessment, and risk factors would be ideal candidates to participate in this tender and potentially secure future business opportunities with the public sector.

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Notice Information

Notice Title

Investigation into Network Rail's risk modelling, embedded risk and uncertainty on PR23

Notice Description

The ORR has recently begun its 2023 periodic review of Network Rail covering the five years from April 2024 to March 2029. A central element of every periodic review is a cost assessment whereby ORR determines the appropriate level of expenditure required to deliver the outputs set by funders. The System Cost & Efficiency team is part of the Capital Investment, Enhancements, Engineering and Asset Management team in ORR and is focussed on achieving an efficient cost assessment as part of the PR23 process. Network Rail delivered round 4.5 of its plan to ORR in Mar 22. This was the final top-down plan and Network Rail has now moved to round 5.0, the first stage of bottom-up planning. ORR will not receive this plan, but wishes to gain confidence that risk and uncertainty is adequately considered as part of Network Rail plans and therefore wishes to commission a study into the methodology used within Network Rail to develop its P(50) plan. Currently an Independent Reporter piece of work is being conducted into the use of unit rates within Network Rail, an overview is shown below. The output from the Independent Reporter, when combined with the outputs described in section 2.3 will provide ORR with a holistic view of risk inherent within Network Rail planning processes. Independent reporter: How are unit cost rates calculated and used Background: Unit rates, when combined with the volumes of work to be undertaken, provide the key costing information for the renewals plan. Local and national rates often exist, their selection criteria is not always documented in Network Rail's Initial Business Plan (IBP) and their limitations / applicability need to be understood. Why is this an issue: Unit rates are a key cost driver. Appropriate selection is imperative, national rates should be the composite average, as such, local rates, when combined should average out at the national rate. Should a more advantageous rate be selected for planning purposes additional (excessive) risk provision would be embedded in estimates. Plan to address: Independent Reporter commissioned What does "good" look like as an outcome for ORR: Clear understanding of the statistical significance of local / national unit rates and their applicability / selection criteria. An understanding of the adherence to these criteria, allows a quantitative view of embedded risk. Additional information: The tender exercise is being managed via the ORR Procurement portal (BRAVO). All tender clarification questions must be raised via the portal.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-b5fd17-ff0473e3-afc2-4d13-9a85-7c62c1b2c883
Publication Source
Contracts Finder
Latest Notice
https://www.contractsfinder.service.gov.uk/Notice/0d470e1e-8093-49f9-82fb-9c009653dad2
Current Stage
Award
All Stages
Tender, 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

79400000 - Business and management consultancy and related services

Notice Value(s)

Tender Value
£90,000 Under £100K
Lots Value
Not specified
Awards Value
£78,900 Under £100K
Contracts Value
Not specified

Notice Dates

Publication Date
29 Sep 20223 years ago
Submission Deadline
7 Sep 2022Expired
Future Notice Date
Not specified
Award Date
27 Sep 20223 years ago
Contract Period
2 Oct 2022 - 16 Jan 2023 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
OFFICE OF RAIL AND ROAD
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
LONDON
Postcode
E14 4QZ
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

Supplier Information

Number of Suppliers
1
Supplier Name

SIRIUS ANALYSIS

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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