Scottish Water has gone out to tender with a contract for business intelligence costing tool software worth an estimated £1.4 million.
The utility is focusing on developing ‘Cost Intelligence’ capabilities throughout the business, enabling it to truly understand its costs and transform data into knowledge.
Costing Tools is one of the workstreams which form part of the wider Cost Intelligence strategy and will be one of the key enablers in facilitating the realisation of Cost Intelligence for the business.
Costing tools currently used to provide costing services include:
- Engineering Estimating System which is used to capture and analyse detailed pricing information for bottom up estimating.
- Project Estimating Form which is used for top down pricing.
- Whole Life Cost Tool which is used to provide the whole life costs for the lifetime of an asset, which includes all maintenance costs.
- Engineering Statistical Services Ltd (ESSL) tool which is used to generate algorithms and cost curves.
Other tools -mainly custom tools which are spreadsheet based — are used for business plan pricing, efficiency validation and other analytical outputs.
According to Scottish Water, the essential activities required to effectively manage assets by providing the mechanism for all pricing requirements as well as providing more robust estimates will not be sustainable using the existing suite of costing tools.
The water company is now looking to appoint a supplier to provide either a proprietary –but configurable - ‘off-the-shelf’ solution or a proprietary and configurable solution framework.
Contracted suppliers will be required to collaborate with Scottish Water, and possibly other suppliers, in the implementation and integration of the software. They will also need to provide on-going maintenance for the software they have provided.
The contract will run for an initial term of 6 years with two further extension options.
Time limit for receipt of tenders or requests to participate is 28th August 2017 – click here to access the tender documentation.
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