---
title: "Study on using econometrics to calculate variable charges"
ocid: "ocds-b5fd17-2dbe40b6-c6cf-47bc-8644-64aab530879d"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-b5fd17-2dbe40b6-c6cf-47bc-8644-64aab530879d"
markdown_url: "https://d3tenders.com/contract/ocds-b5fd17-2dbe40b6-c6cf-47bc-8644-64aab530879d.md"
json_url: "https://d3tenders.com/contract/ocds-b5fd17-2dbe40b6-c6cf-47bc-8644-64aab530879d.json"
source: "Contracts Finder"
current_stage: "Award"
buyer: "OFFICE OF RAIL AND ROAD"
published: "2024-07-31"
---

# Study on using econometrics to calculate variable charges

Buyer: OFFICE OF RAIL AND ROAD  
Current stage: Award  
OCID: ocds-b5fd17-2dbe40b6-c6cf-47bc-8644-64aab530879d

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## Summary

The Office of Rail and Road (ORR) has concluded the procurement process titled “Study on using econometrics to calculate variable charges” within the feasibility study industry category, located in the United Kingdom. The tender, identified as ORR/CT/24-17, aimed to explore the feasibility of using econometrics for calculating marginal costs and variable usage charges (VUCs) for individual vehicles. Published on 10th June 2024 and completed on 18th August 2024, this procurement employed an open procedure (below threshold). The project started on 1st August 2024 and is set to conclude on 31st October 2024. The total contract value is £68,500 with the contract awarded to CEPA LLP. The procurement method was designed to be inclusive of SMEs, though VCSEs were not considered for this project.

This tender presents a valuable opportunity for consultancies and analytical firms specialising in econometrics and feasibility studies within the rail industry. Small and medium-sized enterprises (SMEs) with expertise in data analysis, econometric modelling, and transport economics can particularly benefit from this project. By contributing to the application of econometric methods in calculating VUCs, businesses can establish a significant foothold in the niche sector of rail transport economics, enhancing their portfolio and leading to further governmental contracts. The study's findings and recommendations could set the precedence for future projects, making this tender an ideal prospect for firms focusing on innovation and data-driven solutions within the railway sector.

## Notice

The scope of this project covers the calculation of VUCs and the specific objective of this work is to establish the feasibility of using econometrics to calculate VUCs. The first step of the project should apply the econometric approach to calculating marginal costs and then individual vehicles variable usage charges (VUCs). Following this the study should then undertake a comparison between its findings and the findings of the engineering approach as calculated in PR23 (as per the CP7 price list). This should also consider the data Network Rail used in this process. For example, we know that the robustness of econometrics heavily depends on the quality and quantity of the data available and Network Rail may not have this. Any recommendations should take such issues into account. Finally, the study should come up with recommendations on whether it is appropriate to use two different approaches and how to do so effectively, taking into account their respective weaknesses and strengths.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Contracts Finder |
| Latest notice | https://www.contractsfinder.service.gov.uk/Notice/a29cdd28-6e41-425e-a6a8-0d5428a31ebb |
| 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 |
| All stages | Tender, Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 31 Jul 2024 |
| Submission deadline | 9 Jul 2024 |
| Future notice date | Not specified |
| Award date | 30 Jul 2024 |
| Contract period | 31 Jul 2024 - 31 Oct 2024 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | £70,000 |
| Lots value | Not specified |
| Awards value | £68,500 |
| 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 | OFFICE OF RAIL AND ROAD |
| Locality | LONDON |
| Post town | East London |
| Postcode | E14 4QA |
| Country | England |
| ITL 1 | TLI London |
| ITL 2 | TLI4 Inner London - East |
| ITL 3 | TLI42 Tower Hamlets |
| Local authority | Tower Hamlets |
| Electoral ward | Canary Wharf |
| Westminster constituency | Poplar and Limehouse |
| Delivery location | Not specified |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | CEPA |

## CPV Codes

### Divisions

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

### Codes

- 79314000 - Feasibility study

## Release History

- 31 Jul 2024 at 08:40 - Award - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/a29cdd28-6e41-425e-a6a8-0d5428a31ebb
- 10 Jun 2024 at 10:19 - Tender - Tender Notice - https://www.contractsfinder.service.gov.uk/Notice/a749b524-70ce-443d-b217-c3d898009137

## Documents

- https://www.contractsfinder.service.gov.uk/Notice/a29cdd28-6e41-425e-a6a8-0d5428a31ebb
  31st July 2024 - Awarded contract notice on Contracts Finder
- https://www.contractsfinder.service.gov.uk/Notice/a749b524-70ce-443d-b217-c3d898009137
  10th June 2024 - Opportunity notice on Contracts Finder
- https://www.contractsfinder.service.gov.uk/Notice/Attachment/6732ed57-e82d-4ad4-9d06-dd25a234a255
- https://www.contractsfinder.service.gov.uk/Notice/Attachment/a7076169-193a-46e5-8e23-48997a301436
- https://www.contractsfinder.service.gov.uk/Notice/Attachment/7e0ebaff-e1ca-41d6-8ad3-a87e37f3acb6
- https://www.contractsfinder.service.gov.uk/Notice/SupplierAttachment/03641d9b-da32-40f9-a527-75f035cb2c20

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-b5fd17-2dbe40b6-c6cf-47bc-8644-64aab530879d. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-b5fd17-2dbe40b6-c6cf-47bc-8644-64aab530879d.json.