Thames Water has terminated part of the procurement process due to what it describes as a lack of candidates coming forward to tender for an AMP8 £440 million mains rehabilitation contract.
The water company went out to tender for the major AMP8 contract with an estimated total value of £440 million in November 2024.
With an initial term of 4 years and options to extend up to a maximum of 8 years, the contract, was tendered in two separate Lots:
- Lot 1 - Design and Build (£320 million)
- Lot 2 - Build Only (£120 million)
The time limit for receipt of tenders or requests to participate in the procurement was 14 January 2025 - the termination relates to Lot 2.
Just a week after the initial stage concluded, Thames Water has now said that the PQQ Mains Rehabilitation Framework Lot 2 process is being terminated due to a lack of candidates. Lot 2 was structured as a multi-supplier framework with 3 to 5 contractors.
The water company received only one Lot 2 PQQ response – Thames Water said:
“It is not possible to proceed at this stage with a tender process for Lot 2 that is consistent with the Contract Notice.
“The limited number of submissions received would additionally not provide the necessary competitive environment required to ensure the best value for money.
“This decision has been made in accordance with our procurement process, which aims to foster a competitive and fair bidding process.
“We believe that re-evaluating the scope of the ITN and possibly re-issuing it at a later date may attract a broader range of suppliers and ensure a more competitive process.”
Scope of work covered under Lot 2 included:
- Optimisation, structural replacement or relining of distribution water mains within DMAs and bounded by district meters and the District Boundary Valves.
- Structural replacement of all service connections from the distribution mains to customer boundaries, including installation of a suitable boundary box.
- Replacement of all apparatus connected to the network including valves, hydrants, disinfection points, air valves, etc.
- Securing abandoned mains by cutting and capping. Removing surface covers, marker posts and plates of abandoned washouts, hydrants and valves etc. so that only covers relating to live apparatus remain.
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