---
title: "Adviser for Ofwat's response to CMA document"
ocid: "ocds-b5fd17-1a5bb337-d69e-4ee0-9527-1a6fa24baa00"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-b5fd17-1a5bb337-d69e-4ee0-9527-1a6fa24baa00"
markdown_url: "https://d3tenders.com/contract/ocds-b5fd17-1a5bb337-d69e-4ee0-9527-1a6fa24baa00.md"
json_url: "https://d3tenders.com/contract/ocds-b5fd17-1a5bb337-d69e-4ee0-9527-1a6fa24baa00.json"
source: "Contracts Finder"
current_stage: "Award"
buyer: "WATER SERVICES REGULATION AUTHORITY (OFWAT)"
published: "2021-02-04"
---

# Adviser for Ofwat's response to CMA document

Buyer: WATER SERVICES REGULATION AUTHORITY (OFWAT)  
Current stage: Award  
OCID: ocds-b5fd17-1a5bb337-d69e-4ee0-9527-1a6fa24baa00

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## Summary

The Water Services Regulation Authority (Ofwat) has completed a procurement process, awarding a contract for consultancy titled "Adviser for Ofwat's response to CMA document." This procurement, classified under general management consultancy services, focused on providing expert analysis concerning the Competition and Markets Authority's findings related to the allowed return for water companies. The contract, valued at £20,000, had an initiation date of 4th February 2021, with deliverables required by key deadlines throughout October 2020, including a final report to be published on Ofwat's website.

This contract presents an opportunity for consultancy firms specialising in regulatory analysis, economic modelling, or financial consultancy, particularly those with expertise in the water sector. Businesses that can demonstrate competency in addressing complex financial assessments or regulatory matters, especially those classified as small and medium enterprises (SMEs), are well-positioned to compete. Engaging in such tenders allows firms to enhance their portfolio by contributing to critical regulatory discussions affecting the water industry, ultimately supporting their growth and reputation in this sector.

## Notice

The Supplier shall provide the following Services to the Customer: Review of issues related to the allowed return in the Competition and Markets Authority (CMA's) provisional findings report on Ofwat's 2019 Price Review in response to 4 water companies' appeal, including: Risk free rate - Comment on CMA's use of AAA corporate bonds to inform RFR, with reference to assumptions required by CAPM to hold. Total market return - Comment on the CMA's range, point estimate and overall approach. Total market return - Comment on need for volatility bias adjustment and point estimate used by the CMA for 'ex-ante' approaches. Aiming up - comment on the CMA's approach to aiming up, applicability to the water sector Gearing outperformance mechanism - comment on the CMA's critique of our mechanism. The response should address concerns Order Form - Consultancy Services Commercial - Sensitive about the presence and level of gearing outperformance and lack of evidence that high gearing is harmful. It should also reference the Modigliani Miller theorem and provide a view on whether it is consistent with our mechanism, given the particular characteristics of the water sector. The Supplier shall provide the following Deliverables to the Customer as part of the Services: A report of professional opinion and findings related to the Services described above, to form part of Ofwat's response to the CMA's provisional findings (deadline 27 October 2020) and published on Ofwat's website. To meet this deadline, the Supplier is to produce a draft report by 9am 19 October 2020, with some preliminary work shared for discussion in advance; final report by 9am 26 October 2020. Final report to be published on Ofwat's website. Potential attendance by videolink at any hearings related to the above matters. Any follow-up work related to the above matters (e.g. advice on response to any questions from the CMA). Additional information: For further information, please contact procurement@ofwat.gov.uk

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Contracts Finder |
| Latest notice | https://www.contractsfinder.service.gov.uk/Notice/9125ae21-9679-4a4d-831a-28753af83198 |
| Notice type | Award Notice |
| Procurement type | Standard |
| Procurement category | Services |
| Procurement method | Direct |
| Procurement method details | Single tender action (below threshold) |
| Tender suitability | SME, VCSE |
| Awardee scale | SME |
| All stages | Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 4 Feb 2021 |
| Submission deadline | 1 Oct 2020 |
| Future notice date | Not specified |
| Award date | 3 Oct 2020 |
| Contract period | 4 Oct 2020 - 30 Nov 2020 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | £20,000 |
| Lots value | Not specified |
| Awards value | £20,000 |
| Contracts value | Not specified |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Not specified |
| Awards status | Active |
| Contracts status | Not specified |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | WATER SERVICES REGULATION AUTHORITY (OFWAT) |
| Locality | BIRMINGHAM |
| Post town | Birmingham |
| Postcode | B5 4UA |
| Country | England |
| ITL 1 | TLG West Midlands (England) |
| ITL 2 | TLG3 West Midlands |
| ITL 3 | TLG31 Birmingham |
| Local authority | Birmingham |
| Electoral ward | Ladywood |
| Westminster constituency | Birmingham Ladywood |
| Delivery location | TLG West Midlands (England), TLI London |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | SETH ARMITAGE |

## CPV Codes

### Divisions

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

### Codes

- 79411000 - General management consultancy services

## Release History

- 4 Feb 2021 at 11:14 - Award - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/9125ae21-9679-4a4d-831a-28753af83198

## Documents

- https://www.contractsfinder.service.gov.uk/Notice/9125ae21-9679-4a4d-831a-28753af83198
  4th February 2021 - Awarded contract notice on Contracts Finder

## Provenance

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