---
title: "PR19 - Innovation and Efficiency Gains from the Totex Framework"
ocid: "ocds-b5fd17-b6a83852-8a43-433e-8797-fdc8bec93984"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-b5fd17-b6a83852-8a43-433e-8797-fdc8bec93984"
markdown_url: "https://d3tenders.com/contract/ocds-b5fd17-b6a83852-8a43-433e-8797-fdc8bec93984.md"
json_url: "https://d3tenders.com/contract/ocds-b5fd17-b6a83852-8a43-433e-8797-fdc8bec93984.json"
source: "Contracts Finder"
current_stage: "Award"
buyer: "WATER SERVICES REGULATION AUTHORITY"
published: "2018-04-11"
---

# PR19 - Innovation and Efficiency Gains from the Totex Framework

Buyer: WATER SERVICES REGULATION AUTHORITY  
Current stage: Award  
OCID: ocds-b5fd17-b6a83852-8a43-433e-8797-fdc8bec93984

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## Summary

The procurement process titled "PR19 - Innovation and Efficiency Gains from the Totex Framework" was conducted by the Water Services Regulation Authority, located in Birmingham, England. This initiative falls under the services category, specifically business and management consultancy. The tender was originally planned as a selective procurement method with a call-off from a framework agreement, and it was in the award stage as of November 9, 2017. The contract period commenced on November 16, 2017, and concluded on March 30, 2018. The tender had an end date for submissions on October 30, 2017.

This tender presents significant opportunities for consultancy firms, particularly those specialising in business and management services within the water sector. Companies capable of demonstrating expertise in efficiency savings, benchmarking, and innovation implementation will be well-positioned to compete effectively. The focus on leveraging the totex approach and operational efficiency makes this an attractive opportunity for both small and medium enterprises (SMEs) and larger consultancies aiming to support water companies in enhancing their operational frameworks.

## Notice

Objectives and Scope Since PR14 water companies and their suppliers have had time to gain experience and adapt to the totex and outcomes framework. Different companies have adapted to the new framework at different pace. For PR19, we consider that all water companies should be able to take full advantage of the new framework and deliver significant efficiency savings. The overall objectives of this work are to identify the potential scope and range for efficiency savings from the full utilisation of the totex and ODI approach. The principle objective of this work is to deliver a measure of efficiency challenge that Ofwat can apply to baseline costs at PR19. This is to be robust and supported by a broad range of evidence which the Contractor may collect from a variety of sources, amongst which may be: * Examining totex performance in the water sector, and particular examples of best practice of innovations and efficiency savings through using a totex approach. * Examining totex performance in the energy sector, and the potential scale of any outperformance that can be attributed to innovation and improved efficiency. * Examining cost performance in other sectors to identify the range of cost reductions that might be available, particularly where there have been significant changes such as cost shocks, competition and the introduction of price controls. * Examining the performance of other sectors abroad that either have or have introduced regimes similar to totex/ODIs. * Developing a conceptual bottom-up assessment, based on sound engineering principles, of the potential that totex/ODIs provide companies. We are seeking support to identify the potential scope and range for efficiency savings from the full utilisation of the totex approach in the water sector. The expenditure allowances we set to water companies are largely determined through cost benchmarking models which rely significantly on historical cost information. However, historical information will not reflect the full benefits of the totex approach. In setting efficient cost baselines for PR19, we are seeking to understand, what potential efficiency gains from the totex approach we might apply to our cost baselines for PR19. We think this work could be divided into two main tasks: Task 1: Evidence of savings from a totex approach Task 2: Potential application of totex savings to Ofwat's baselines for PR19

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Contracts Finder |
| Latest notice | https://www.contractsfinder.service.gov.uk/Notice/6a3572f3-c53b-4ad0-afd6-e1c2f8516e2b |
| Notice type | Award Notice |
| Procurement type | Framework |
| Procurement category | Services |
| Procurement method | Selective |
| Procurement method details | Call-off from a framework agreement |
| Tender suitability | SME |
| Awardee scale | Large |
| All stages | Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 11 Apr 2018 |
| Submission deadline | 30 Oct 2017 |
| Future notice date | Not specified |
| Award date | 9 Nov 2017 |
| Contract period | 16 Nov 2017 - 30 Mar 2018 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | Not specified |
| Lots value | Not specified |
| Awards value | £105,500 |
| 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 | WATER SERVICES REGULATION AUTHORITY |
| 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 | KPMG |

## CPV Codes

### Divisions

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

### Codes

- 79400000 - Business and management consultancy and related services

## Release History

- 11 Apr 2018 at 10:44 - Award - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/6a3572f3-c53b-4ad0-afd6-e1c2f8516e2b

## Documents

- https://www.contractsfinder.service.gov.uk/Notice/6a3572f3-c53b-4ad0-afd6-e1c2f8516e2b
  11th April 2018 - Awarded contract notice on Contracts Finder
- https://www.contractsfinder.service.gov.uk/Notice/Attachment/01b3bb2c-763a-4033-b37c-dbfd357dfc4f
  Contract

## Provenance

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