Reference: PROC.0327
Undertake a programme-wide Value for Money (VfM) appraisal of the Major Water Infrastructure Programme (MWIP) to identify, test and prioritise credible cost reduction and VfM opportunities, with a focus on decisions that can influence cost, schedule, risk and deliverability at the early stages of the project lifecycle across identified VfM drivers.
The study will adopt a two-stage approach to delivery. Stage 1 will provide a programme-wide VfM assessment, covering VfM drivers and identifying, testing and prioritising credible opportunities. Greater emphasis will be placed on those drivers where there is currently greatest potential to influence VfM, particularly given the maturity of assets within the Reservoir Programme.
Stage 2 will comprise subsequent steps required to further develop, evidence and unlock priority opportunities identified through Stage 1. These may include targeted technical, commercial or delivery assessments, where required. Any such subsequent work will be defined and commissioned separately based on the findings and recommendations from Stage 1.
The objectives of the Services are to:
• Identify potential VfM drivers across MWIP.
• Challenge and develop the initial opportunities through structured input from relevant industry and technical experts.
• Identify and prioritise the most significant opportunities for further assessment.
• Quantify potential benefits, where sufficient evidence is available, including potential cost and schedule benefits and wider value.
• Assess each priority opportunity against cost, schedule, risk, deliverability, commercial implications and wider value.
• Identify key assumptions, evidence gaps, confidence levels, dependencies, enabling conditions and risks.
• Assess the implications for delivery approaches, governance, commercial models and wider system enablers.
• Identify opportunities that may be applicable across the wider Reservoir Programme and, where relevant, other asset types in MWIP.
• Develop practical recommendations for taking priority opportunities forward.
• Provide Ofwat and relevant stakeholders with a robust and transparent evidence base to support decision-making.
Scope of Services
The Supplier shall be responsible for determining the appropriate methodology, approach and activities required to achieve the purpose and objectives of the Services.
Outputs / Deliverables
The Supplier shall provide a VfM Appraisal Report and Prioritised VfM Opportunity Matrix setting out, where evidence permits.
Schedule
The Supplier shall deliver the Services in accordance with the following indicative programme:
• Week 1: Project mobilisation and receipt of information.
• Weeks 2-3: Baseline review and development of the VfM diagnostic framework.
• Week 4: Expert input, workshops and opportunity prioritisation.
• Week 5: Draft findings issued for review, followed by final report and presentation.
The Supplier shall maintain and update the programme throughout the Services and provide a revised schedule where required to reflect progress, dependencies and any changes to the delivery approach.
The schedule shall include key milestones, review points and stakeholder meetings, including, as appropriate, meetings/checkpoints with key stakeholders.
The Supplier shall ensure that sufficient time is allowed for stakeholder review and feedback and shall promptly identify any risks to the agreed programme, together with proposed mitigation actions.
Success criteria
The Services will be considered successful where they:
A. Identify and prioritise credible VfM opportunities across the agreed VfM drivers.
B. Provide, evidence-based assessment of potential cost, schedule, risk, deliverability and wider benefits.
C. Clearly distinguish between evidenced benefits, indicative opportunities and areas requiring further investigation, with appropriate confidence levels.
D. Provide practical and actionable recommendations, including enabling conditions, dependencies, owners and next steps.
E. Demonstrate how priority opportunities can be implemented and applied
across the MWIP, where relevant.
F. Provide Ofwat and stakeholders with a clear, transparent and decision-ready evidence base to support investment and delivery decisions.
G. Deliver the agreed report, opportunity matrix and recommendations within the agreed programme, allowing sufficient time for stakeholder review and challenge.
Award Criteria Not Specified
