United Utilities is seeking supply chain input ahead of tendering a major multi-million pound AMP8 developer services contract - potential overall value of the contract during the five year AMP8 investment programme runs into hundreds of millions of pounds.
The water company has current framework agreements in place for: the following activities:
- Developer Services & Lead Replacement (est £20 million per annum)
- Meter installation, repair & exchange (AMR) (est £35 million per annum)
- Domestic Water Efficiency Audits (est £1 million per annum)
- Meter Supply (AMR) (est value to be confirmed)
- Associated connectivity/communication provision (estimated value to be confirmed)
In order to align with the 2025-2030 investment period, the activities will need to be retendered before the start of AMP8 on 1st April 2025. United Utilities currently anticipates going out to tender with a formal Contract Notice in September 2023.
The framework agreements for the above activities would historically have been tendered separately according to their activity ie. construction element as one tender and meter supply and connectivity/communications as another.
United Utilities says there is now an opportunity to go to market for all, or combinations of, the activities in one tender if there be market interest/capability for this provision
The water company is inviting interested suppliers to take part in a market engagement exercise to establish whether there is market interest and experience in the provision of all, or a combination of the activities, which are likely to be tendered in Lots, and to understand the different delivery models available.
United Utilities wants to gain feedback on the interest of likely applicants and establish which activities applicants would be interested in submitting bids for, prior to beginning the formal procurement process.
This will help the water company to determine how to best aggregate or segregate the activities and ensure it receives viable bids at tender stage.
United Utilities has now published a Periodic Indicative Notice (PIN) in order to conduct a soft market testing exercise in order to understand the opportunity of aggregating all, or a combination of, the activities relating to Developer Services and Metering.
The utility is moving (in part) to the installation of smart meters and will need to secure the supply, installation and connectivity/communication of these products for its AMP8 programme.
In addition, the move to smart metering will improve metering coverage, connectivity and provide greater visibility through more frequent water consumption data, in line with United Utilities' metering strategy.
Deadline for interested companies to submit completed responses to a supplier questionnaire is 3.00pm on 26th January 2023 – click here to access the Periodic Indicative Notice documentation.
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