--- title: "Development of financial model compliant with FAST modelling standard" ocid: "ocds-b5fd17-c561a599-2b75-4629-a541-fcead1406e15" canonical_url: "https://d3tenders.com/contract/?ocid=ocds-b5fd17-c561a599-2b75-4629-a541-fcead1406e15" markdown_url: "https://d3tenders.com/contract/ocds-b5fd17-c561a599-2b75-4629-a541-fcead1406e15.md" json_url: "https://d3tenders.com/contract/ocds-b5fd17-c561a599-2b75-4629-a541-fcead1406e15.json" source: "Contracts Finder" current_stage: "Award" buyer: "WATER SERVICES REGULATION AUTHORITY" published: "2017-03-20" --- # Development of financial model compliant with FAST modelling standard Buyer: WATER SERVICES REGULATION AUTHORITY Current stage: Award OCID: ocds-b5fd17-c561a599-2b75-4629-a541-fcead1406e15 [View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-b5fd17-c561a599-2b75-4629-a541-fcead1406e15) [Download OCDS JSON](https://d3tenders.com/contract/ocds-b5fd17-c561a599-2b75-4629-a541-fcead1406e15.json) ## Summary 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. ## Notice 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"). ## Key Details | Field | Value | | --- | --- | | Publication source | Contracts Finder | | Latest notice | https://www.contractsfinder.service.gov.uk/Notice/1478d546-a32b-47ca-a3e7-749bbaf2b881 | | Notice type | Award Notice | | Procurement type | Standard | | Procurement category | Services | | Procurement method | Not Specified | | Procurement method details | Other - | | Tender suitability | SME | | Awardee scale | Large | | All stages | Award | ## Dates | Field | Value | | --- | --- | | Publication date | 20 Mar 2017 | | Submission deadline | 28 Oct 2016 | | Future notice date | Not specified | | Award date | 21 Nov 2016 | | Contract period | 22 Nov 2016 - 24 Feb 2017 | | Recurrence | Not specified | ## Values | Field | Value | | --- | --- | | Tender value | £35,650 | | Lots value | Not specified | | Awards value | £35,650 | | 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 | F1F9 | ## CPV Codes ### Divisions - 72 - IT services: consulting, software development, Internet and support ### Codes - 72000000 - IT services: consulting, software development, Internet and support ## Release History - 20 Mar 2017 at 16:26 - AwardUpdate - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/1478d546-a32b-47ca-a3e7-749bbaf2b881 - 3 Jan 2017 at 12:50 - AwardUpdate - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/1478d546-a32b-47ca-a3e7-749bbaf2b881 - 25 Nov 2016 at 11:17 - Award - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/1478d546-a32b-47ca-a3e7-749bbaf2b881 ## Documents - https://www.contractsfinder.service.gov.uk/Notice/1478d546-a32b-47ca-a3e7-749bbaf2b881 20th March 2017 - Awarded contract notice on Contracts Finder - https://www.contractsfinder.service.gov.uk/Notice/Attachment/61192a2e-ed28-4d46-9b06-0f5ebf29f805 ## 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-c561a599-2b75-4629-a541-fcead1406e15. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-b5fd17-c561a599-2b75-4629-a541-fcead1406e15.json.