Ofwat Consultancy Framework · UK public procurement notice

Relating to all aspects of specialised economic services.

During the term of the framework agreement, Ofwat will have requirements for services relating to regulatory, competition, public policy and environmental economics.

Such requirements include the following sub-lots:

• Sub-Lot 1A – Regulatory Economics

This sub-lot category covers the following:

o Cost Assessment - Economic services on a range of methods (also called economic evaluation, cost allocation, efficiency assessment, cost-benefit analysis, or cost-effectiveness analysis)

o Economic Appraisal and Evaluation - Economic services on the range of mathematical techniques appropriate for the analysis of costs and other financial information appropriate in setting price controls and other types of regulation and/or analysing competition

o Market Design (UK & International) – covers the history of market reform in water regulated sector and the current market arrangements in the UK. Understanding the processes that support competition at the retail level and the key challenges facing UK markets and other markets in the EU and worldwide

o Behavioural Economics – understanding of the way in which businesses and individuals make decisions, the types of information used in decision making and framing of decisions and the implications of behavioural economics insights for policy development

o Distributional Analysis – covers understanding measures of inequality and impacts of changes in prices or income; to analyse and understand the impact of policy on different customer groups

• Sub-Lot 1B – Competition Economics for Enforcement
• Sub-Lot 1C – Public Policy and Environmental Economic

Services in respect to the environment.

During the term of the framework agreement, Ofwat will have a requirement for services relating to the environment. This may involve advice and assessment of specific aspects of company annual performance against their environmental commitments.

Such requirements include the following:

• Environmental assessment and economics
• Water and wastewater management
• Climate change mitigation and adaptation

Consultancy services relating to all aspects of corporate finance and accounting within an organisation as they pertains to us. Services may relate to establishment of suitable strategies, policies, asset management, processes and the arrangement of financial responsibilities within an organisation. Services may also be provided in support of specific projects, including complex procurements and shared services.

Such requirements include the following sub-lots:

• Sub-Lot 3A. General Corporate Finance Issues

Services related to the provision of finance (equity and debt, including structured debt, and bank facilities) for companies. It is a specific area of finance dealing with the financial decisions corporations make and the tools as well as analysis used to make these decisions

• Sub-Lot 3B. Cost of Capital & Financeability

Services relating to the calculation of the efficient cost of finance incurred by a company under the assumed regulatory (notional) financing structure. It also encompasses analysis and modelling of credit metrics resulting under different scenarios for a given regulatory financial model

• Sub-Lot 3C. General and Regulatory Accounting (UK & International)

Services relating to the interpretation and application of Accounting Standards, changes in Accounting Standards, statutory accounting and regulatory accounting including accounting for separated businesses or separate divisions

• Sub-Lot 3D. Taxation

Services related to the company’s tax obligations in the past, present and future.

• Sub-Lot 3E. Forensic Accounting

Services related to historic accounting transactions and policy which integrates accounting, auditing and investigative skills and presents the evidence in a report suitable for presentation in a court. This may also include general services on adjustments to financial or management accounts data for the purpose of analysing company performance.

• Sub-Lot 3F. Pensions and Actuarial

Services related to insurances and pensions and compliance, including using mathematical modelling techniques and statistical concepts to determine probability and assess risks. This sub-lot also includes services relating to the accounting for pension and insurance costs and liabilities and reflection within regulatory frameworks including price controls.

• Sub-Lot 3G. Audit

Work and services related to ensure compliance with the requirements of regulatory bodies and is an evaluation of an organisation, system, process, project or product.

This Lot also includes audit and review of companies' systems and controls and may include audit of customer service data. Scrutiny and challenge of reported data. Auditing standards. Approach adopted by companies' statutory auditors.

• Sub-Lot 3H. Cost Analysis

Services on a range of methods (also called economic evaluation, cost allocation, efficiency assessment, cost-benefit analysis, or cost-effectiveness analysis) used to evaluate expenditure.

• Sub-Lot 3I. Financial Modelling

The development of a spreadsheet or other software tool to evaluate the impact of decisions (such as a price control), on a company’s revenue, financial position and its ability to raise the necessary finance to carry on its business. Also covers services relating to the quality assurance review of such financial models that have been prepared in-house.

• Sub-Lot 3J. Financial Distress

Provision of services on the early warning signals of a water company that is at risk of experiencing financial distress. It also includes services and support on possible simulation exercises to test policies and approach should a financial distress/special administration circumstance occur.

This Lot relates to Water Engineering, Science and Technology technical services.

During the term of the framework agreement Ofwat will have requirements for services relating to water engineering, science and technology and it may also include support related to the following:

• Technical and cost assessment of company business plan proposals
• Technical engineering assessments of company and other stakeholder proposals
• Thames Tideway Tunnel (TTT)
• New Innovation Schemes
• The Water Regulators’ Alliance for Progressing

Infrastructure Development (RAPID)

• Industry insights analysis
• Risk assessment
• Optimisation

This lot covers services relating to Policy and Regulatory Development and Implementation as they pertain to us.

During the term of the framework agreement Ofwat will have a requirement for services relating to policy and regulatory development and implementation. Such requirements could cover any of our regulatory and policy needs which include support related to:

• Policy and Problem Analysis
• Policy Development
• Policy Implementation

Project and Programme Management services.

During the term of the framework agreement Ofwat will have requirements for services relating to project and programme management, which may include support related to the following:

• Strategic project and programme management support in a policy and regulatory environment
• Programme and project initiation
• Risk and opportunities management analysis
• Project and programme governance and assurance
• Programme health checks and efficiency reviews
• Knowledge transfer
• Project evaluation, reviews and Post-Implementation Reviews
• Change Management tools, techniques, training and strategy
• Business Integration and Separation
• Business analysis