Thames Water Technology and Transformation Alliance

Thames Water Technology and Transformation Alliance

1, more, or all elements of Technology (IT/OT) project delivery, development, support, maintenance, system integration, hosting and other IT services for new or legacy software, systems, processes, infrastructure, and other assets.

United Kingdom-Reading: Information technology services

2015/S 187-340119

Contract notice – utilities


Directive 2004/17/EC

Section I: Contracting entity

I.1)Name, addresses and contact point(s)

Thames Water Utilities Limited
Procurement Support Centre — 3rd Floor East, c/o Mail Room, Rose Kiln Court
RG2 0BY Reading

Further information can be obtained from: The above mentioned contact point(s)

Specifications and additional documents (including documents for a dynamic purchasing system) can be obtained from: The above mentioned contact point(s)

Tenders or requests to participate must be sent to: The above mentioned contact point(s)

I.2)Main activity


I.3)Contract award on behalf of other contracting entities

The contracting entity is purchasing on behalf of other contracting entities: no

Section II: Object of the contract


II.1.1)Title attributed to the contract by the contracting entity:

FA1264 Technology and Transformation Alliance.

II.1.2)Type of contract and location of works, place of delivery or of performance

Service category No 7: Computer and related services
Main site or location of works, place of delivery or of performance: Whole of Thames Water region.
NUTS code

II.1.3)Information about a public contract, a framework agreement or a dynamic purchasing system (DPS)

The notice involves a public contract
II.1.4)Information on framework agreement

II.1.5)Short description of the contract or purchase(s):

Thames Water Utilities Limited (Thames Water) is looking to procure 1 service provider to work with Thames Water to form a Technology and Transformation Alliance in order to deliver the core Information Technology/Operational Technology (IT/OT) requirements for the remainder of AMP6 across its entire business.
AMP6 is the current Asset Management Plan underway within the water sector in England and Wales and runs from 1.4.2015 to 31.3.2020.
The service provider will work with Thames Water to deliver a step change in delivery of all scope whilst also focusing on proactive longer-term innovation and transformation.
There will be the potential to (a) extend the arrangements to the AMP7 and AMP8 periods respectively, and (b) bring in 1 or more other items of potential future scope (see below) by agreement at any point in the contract.
The final contract(s) (or parts thereof) will be capable of transfer by Thames Water to any member(s) of the Group on a group re-structuring.
It is currently envisaged that the scope of the contract may include, but not be limited to, activities associated with the following, to provide either a partial or full and complete end-to-end service:
1, more, or all elements of Technology (IT/OT) project delivery, development, support, maintenance, system integration, hosting and other IT services for new or legacy software, systems, processes, infrastructure, and other assets and the like, including but not limited to:
— Service strategy, IT/OT strategy, technical advice and planning;
— Enterprise architecture planning;
— Process improvement and design;
— Feasibility analysis and blueprinting;
— Requirements analysis;
— Solution design;
— Service design;
— Application development;
— Testing strategy, test planning and testing;
— Data quality improvement and migration for service transition;
— Data management and information management;
— Data warehousing and analytical reporting;
— Information security management;
— IT/OT asset management;
— IT/OT integration;
— Information management and analytics;
— Programme and project management;
— Quality control, quality assurance and quality management;
— Design assurance;
— System integration;
— Service validation and testing;
— Business continuity management and IT/OT disaster recovery management;
— Transition into ‘business-as-usual’ operations (including application support and service hosting);
— Benefits analysis and measurement;
— Application support;
— Supervisory control and data acquisition (SCADA) design, implementation and management;
— Control/automation assets e.g. programmable logic controllers, remote telemetry units;
— Instrumentation installation and integration with SCADA systems;
— Other operational control and automation systems design, implementation and management;
— OT domain management, service provision and networks.
The above requirements may be needed across core service areas including but not limited to:
— Asset infrastructure management and planning;
— Asset and network operations management (e.g. integration of Information Technology and Operational Technology);
— Customer experience management (e.g. marketing, selling, serving and satisfaction);
— End-user computing;
— Finance management;
— Geospatial referencing services;
— Integrated analytics and insight for customers, assets and operations;
— People management (e.g. employee and manager self-service; talent development);
— Revenue management (e.g. billing, payments, credit and collections);
— Supply chain management and planning (e.g. purchase-to-pay value chain);
— Unified communications and collaboration (e.g. customer interaction channels);
— Work enactment and work management;
The services required under the contract(s) are split across 2 areas: Core Scope and Potential Future Scope.
Core Scope.
The core scope includes, but is not limited to the following:
A. Service Integration: Provision of service design, service transition, service operation, cross-tower integration and continual service improvement.
B. Service Desk: Provision of incident management, problem management, user contact management, and request fulfilment.
C. Hosting: Provision of the fully maintained operational premises, the storage and processing capacity, the management and maintenance of the hardware, the build and provision of the operating environment to support the hosted applications and any required appliances plus including the provision or brokering of new potential services such as ‘cloud’ based applications and/or services and/or infrastructure (e.g. software as a service, platform as a service, infrastructure as a service).
D. Network: Provision of IT networks services for voice and data connectivity, fixed and mobile. This includes local area networks and associated equipment within offices, wide area networks and connectivity between offices, sites, data centre environments, SCADA/telemetry, and associated assets.
E. End-User-Computing: Provision of administrative office EUC, hardware support, EUC infrastructure applications (e.g. operating systems, anti-virus), application access methods, device management, distribution and management of applications supporting the workplace (e.g. productivity applications).
F. Applications Management: Provision of 2nd and 3rd line support, patching (of applications), minor enhancements and configuration management.
G. Applications Development: Provision of software development services for new developments and major enhancements.
H. SCADA: Supervisory Control and Data Acquisition design, implementation and management.
I. Instrumentation installation and integration with SCADA systems.
J. Projects and Programmes including Intelligence Hub (a programme of IT and OT projects focusing on analytics and performance) and CRMB (customer relationship management and billing systems).
And other IT/OT software, systems, support, processes, infrastructure, product development, change management and other assets which may be required in the operation and associated activities of the Thames Water business across all business areas for the potential term of the contract(s). This will also include the items of business consulting and change management required to deliver the core scope.
Future Potential Scope.
The future potential scope includes, but is not limited to the following:
K. Business Consulting: Provision of management and business consulting, strategy consulting, change management, transformation, and cultural change.
L. Procurement: Provision of strategic sourcing, category management, tendering, contract formulation, award and, contract management.
M. Logistics, Fleet Management and Inventory Management: Provision of vehicle planning and scheduling, vehicle tracking, work-flow, notifications, and optimisation of inventory.
N. Facilities: Provision of the integration and management of processes to maintain and develop the agreed services both ‘hard’ (e.g. building fabric) and ‘soft’ (e.g. catering, cleaning, security, mail-room, and health and safety) which support the organisation.
O. Purchase-to-Pay: Provision of the complete purchasing cycle to ensure a seamless process from need to payment.
P. Human Resources and Payroll: Provision of the management and administration of employees (e.g. recruitment, employee relations, etc.) and associated records (e.g. Payslips, BACs, National Insurance, Tax etc.).
Q. Finance and Reporting: Provision of financial management and support, financial reporting, and associated activities.
R. Energy and Carbon Management: Provision of the procurement, management, monitoring and reporting of activities associated with energy and carbon management.
S. Customer Contact Centre: Provision of voice and non-voice services relating to customer management, inbound and outbound phone calls, account management, connections/ disconnections, customer exceptions, channel integration, reporting, analytics, and management information.
And any other activities which align themselves to a shared services environment and/or cover the same or similar business objectives and requirements.
Thames Water currently envisages that the total value (including all Thames Water costs) of the Core Scope items A to J above will be approximately 400 000 000 GBP — 500 000 000 GBP over the remainder of AMP6 following contract award (i.e. end of March 2016 to end of March 2020) and that this scope value is an approximate forecast for future AMP periods.
Thames Water also currently envisages that the total value (including all Thames Water costs) of the Future Potential Scope items K to S above will be approximately 200 000 000 GBP — 300 000 000 GBP per AMP period. However, no decision has yet been made regarding if and when this scope will be awarded in total or in part.
Bidders will be expected to be able to deliver all the Core Scope items as a minimum.
The size and complexity of the core IT/OT programme, and the potential to bring in the Potential Future Scope, means that it is currently envisaged that bidding entities will be multi-disciplinary in nature and will be either an incorporated or unincorporated bidding consortium.
Thames Water does not envisage that product vendors will be part of the original constitution of each bidding consortium. However, product vendors may be required in the future, either as a strategic supplier or as part of the consortium within the alliance. Therefore, this provision may be incorporated within the consortium by agreement during or after the procurement and pre-service delivery phases.
Following the procurement, Thames Water envisages a pre-service delivery phase between January 2016 and April 2016, followed by full service delivery (including a transition phase).
Thames Water’s current preference is to award the contract to a single successful bidding consortium, but subject to the capability and ability of bidding entities reserves the right to move to a multi-supplier/consortium solution at any point in the procurement process and thereafter award the contract(s) to more than one supplier consortium(s). Where Thames Water exercises this right, the process for doing so and evaluation methodology shall be set out in the relevant procurement documents.
A significant amount of collaboration, knowledge sharing, and innovation will take place during the lifetime of the contract(s) and this requirement, along with the commercial model being developed, will require a bidding consortium(s) with significant collective capacity and capability.
It is currently envisaged that Thames Water and the successful bidding consortium(s) will work together under the contract(s) within a jointly-incentivised commercial arrangement with the objective of outperforming the Thames Water business plan budget which is aligned to the scope being delivered.
The operating model selected for delivering these services is a client-embedded alliance, where Thames Water and the successful bidding consortium work together in a joint-team to meet the stated aims of the contract.
This approach will require selection and evaluation through the procurement on a collective bidding consortium basis.
Bidding consortiums may receive detailed feedback at an early stage in the procurement process upon their strengths and weaknesses as a consortium. A short window of opportunity may be given for shortlisted bidding consortiums to vary their members. Should a bidding consortium choose to change its members in this way, Thames Water shall reapply the selection criteria used at the outset and it will be a condition of continuing in the process that the bidding consortium (as varied) receives the same score or higher than that originally awarded for the Selection stage.
Thames Water and the successful bidding consortium will agree the detailed transition and phasing of the Core Scope during the procurement or pre-service delivery phase. It is envisaged that the items of scope pertaining to IT may be made operational before any OT activities are commenced.
Thames Water does not envisage having an immediate requirement for applicants to deliver the Potential Future Scope from Day 1 of the contract. However, it is currently anticipated that Thames Water may, at some point during the initial term of the contract (including the pre-service delivery phase) or later, require the successful bidding consortium to deliver both the Core Scope and part or all of the Potential Future Scope.
Therefore, each bidding consortium’s ability to manage the Potential Future Scope will be evaluated within the selection and evaluation stages of the procurement.
It may be appropriate for the successful bidding consortium to introduce other entities to deliver this Core Scope and/or Future Potential Scope during the life of the contract(s) and/or for original entities to exit the successful bidding consortium. A clear, precise and unequivocal review clause shall be included within the contract(s) to manage this process.

II.1.6)Common procurement vocabulary (CPV)

72222300, 42961200, 72227000, 64200000, 32441200, 71314300, 79000000, 79400000, 79412000, 79414000, 79418000, 79512000, 79993000,50111000

II.1.7)Information about Government Procurement Agreement (GPA)

The contract is covered by the Government Procurement Agreement (GPA): no

II.1.8)Information about lots

This contract is divided into lots: no

II.1.9)Information about variants

Variants will be accepted: yes
II.2)Quantity or scope of the contract

II.2.1)Total quantity or scope:

See section II.2.5) above for short contract description, further information to be provided in the Procurement Documents.

II.2.2)Information about options

Options: yes
Description of these options: Any agreement awarded would be on the basis of a pre-service delivery phase, currently envisaged at 3 months from the beginning of January 2016 to the end of March 2016 leading into a 4 year + 5 year + 5 year contract into AMP7 and AMP8 respectively, to a maximum term of 14 years and 3 months.

II.2.3)Information about renewals

This contract is subject to renewal: no

II.3)Duration of the contract or time limit for completion

Duration in months: 171 (from the award of the contract)

Section III: Legal, economic, financial and technical information

III.1)Conditions relating to the contract

III.1.1)Deposits and guarantees required:

Bonds and/or parent company guarantees of performance and financial standing may be required.

III.1.2)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:

Specified in the Procurement documents.

III.1.3)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:

Consortia may be required to form a legal entity prior to any award.

III.1.4)Other particular conditions:

The performance of the contract is subject to particular conditions: yes
Description of particular conditions: Specified in the Procurement documents.
III.2)Conditions for participation

III.2.1)Personal situation of economic operators, including requirements relating to enrolment on professional or trade registers

Information and formalities necessary for evaluating if the requirements are met: As detailed in section VI.3) and selection stage.

III.2.2)Economic and financial ability

Information and formalities necessary for evaluating if the requirements are met: As detailed in section VI.3) and selection stage.

III.2.3)Technical capacity

Information and formalities necessary for evaluating if the requirements are met: As detailed in section VI.3) and selection stage.
III.2.4)Information about reserved contracts
III.3)Conditions specific to services contracts

III.3.1)Information about a particular profession

Execution of the service is reserved to a particular profession: no

III.3.2)Staff responsible for the execution of the service

Legal persons should indicate the names and professional qualifications of the staff responsible for the execution of the service: no

Section IV: Procedure

IV.1)Type of procedure

IV.1.1)Type of procedure

Some candidates have already been selected (if appropriate under certain types of negotiated procedures): no
IV.2)Award criteria

IV.2.1)Award criteria

The most economically advantageous tender in terms of the criteria stated in the specifications or in the invitation to tender or to negotiate

IV.2.2)Information about electronic auction

An electronic auction will be used: no
IV.3)Administrative information

IV.3.1)File reference number attributed by the contracting entity:


IV.3.2)Previous publication(s) concerning the same contract

IV.3.3)Conditions for obtaining specifications and additional documents

IV.3.4)Time limit for receipt of tenders or requests to participate

20.10.2015 – 09:00

IV.3.5)Language(s) in which tenders or requests to participate may be drawn up

IV.3.6)Minimum time frame during which the tenderer must maintain the tender
IV.3.7)Conditions for opening of tenders

Section VI: Complementary information

VI.1)Information about recurrence

This is a recurrent procurement: yes
Estimated timing for further notices to be published: Estimated to be between 4-14 years.

VI.2)Information about European Union funds

The contract is related to a project and/or programme financed by European Union funds: no

VI.3)Additional information:

Key target milestone dates:

23rd September — Contract Notice issued.

9:00 6th October — Deadline for applicants to inform Thames Water of their intent to respond to the Selection Questionnaire and information requested in this Contract Notice, together with intended consortium entity company names (although not final).

13th October — Procurement Launch Event (Reading, Berkshire), followed by issue of initial Procurement Documentation and Evaluation Questions.

9:00 20th October — Deadline for applicants to submit response to the initial Selection Questionnaire.

22nd/23rd October — We envisage holding an event on these dates. The event will take place in or around Reading Berkshire and applicants will only be expected to attend only one of the 2 days. The objective of the event will be to give Thames Water an opportunity to discuss any areas of interest or concern from the Selection Questionnaire responses. It may also provide applicants with an opportunity to share their thoughts regarding the constitution of their proposed consortium and their rationale for selecting their various consortium members. Our expectation is that an individual from each consortium entity will be represented at the event.

Thames Water hopes that all potential applicants will attend the Procurement Launch Event as key information and further insight will be shared. However, this information will be made available electronically to those applicants unable to attend.
Selection Questionnaire:

All applicants who wish to respond to this Contract Notice must request a Selection Questionnaire emailing Thames Water’s Procurement Support Centre at providing the following details:

— Applicant name (including all consortium entity company names if known at this time);
— Contact name;
— Contact email;
— Contact telephone;
— Contract being applied for (please state the Technology and Transformation Alliance).
Procurement Support Centre will then issue an email (to the email address provided by you) setting out login details for Thames Water’s eSourcing system (IASTA Smartsource) where you will be able to view the Selection Questionnaire plus other supporting information which will assist applicants.

Once you have received your Selection Questionnaire you will be able to post any questions via IASTA Smartsource which we will endeavour to answer as soon as possible, up to the 14th October. We will share answers where appropriate.

Should you wish to submit a response, you must complete and submit it on IASTA by the date and time stated in the Selection Questionnaire.
It is envisaged that the Selection Questionnaire will be requested on an individual organisation/ entity basis but will be completed and returned by the bidding consortium. Any individual organisation/entity responding as part of more than one bidding consortium must complete a Selection Questionnaire for each bidding consortium of which they are a member.
Thames Water will not meet or reimburse any of the costs incurred by applicants, unless at its absolute discretion, in preparing, submitting or otherwise responding to this opportunity and/or participating in any part of this procurement process.
Thames Water reserves the right to require further information or clarification from an applicant before considering its response.
Thames Water reserves the right to accept a modified consortium during the procurement process provided that the bidding consortium, as so modified, continues to satisfy the requirements of the Selection Questionnaire.
An individual entity may be permitted to participate in more than one bidding consortium with the consent of Thames Water. Thames Water may make such approval conditional upon a capacity assessment, and safeguards and information barriers being put in place to prevent inappropriate disclosure of commercial information/collusion between bidders, unfair treatment and or manipulation of the procurement process. Thames Water’s decision in respect of such matter shall be final.
Thames Water reserves the right to limit the number of bidding consortium that proceed in the procurement process both following selection and to down-select in stages during the evaluation phase.
Thames Water reserves the right to amend the procurement process during the evaluation phase to enable the one or more contracts to be awarded to 1 or more bidding consortium on criteria which shall be set out in the relevant procurement documents.
Thames Water reserves the right to exclude an applicant from the procurement process if it is subsequently determined that any information supplied was inaccurate, incomplete or untrue and was relied on for selection or evaluation purposes.
Thames Water reserves the right to make no award as a result of this procurement process. Except for the contract(s), if any, concluded with the successful bidding consortium(s), nothing in the procurement process shall create a contract, whether express or implied, between Thames Water and any applicant.
Thames Water (including its employees and advisers) does not make any representations, warranties or other commitments, whether express or implied, in relation to the accuracy, adequacy or completeness of the information provided to applicants in this Contact Notice or otherwise in connection with this tender, except as may be specifically agreed in any contract concluded at the end of this tender process.
Thames Water may disclose any information if required to do so by any applicable laws or regulations (including but not limited to, the Environmental Information Regulations 2004 and the Freedom of Information Act 2000, to the extent that these may now or in the future apply to Thames Water), any requirements or guidelines of any competent regulatory body, and any order of any court of competent jurisdiction.
Thames Water operates an on-going risk management approach including but not limited to economic and financial capacity of its suppliers. Information will be obtained either from the supplier or an externally recognised provider. Information will be gathered upon commencement of the process and over the duration of the contract period. Thames Water reserves the right to remove any applicant following information that comes to light that may impact on the ability to service the contract during the procurement event.
Applicants should note that this process might require references to be provided and verified, attendances at meetings, interviews, workshops, talks and presentations at no cost to Thames Water.
Any agreement resulting from this Contract Notice may be modified to include further requirements at any site or operating area under the management of Thames Water or its associated companies.
This Contract Notice does not preclude Thames Water or its associated companies from issuing other Contract Notices for further or same requirements from time to time.

VI.4)Procedures for appeal
VI.4.1)Body responsible for appeal procedures

VI.4.2)Lodging of appeals

Precise information on deadline(s) for lodging appeals: Thames Water Utilities Limited will incorporate a standstill period at the point information on the award of the contract is communicated to tenderers. That notification will provide full information on the award decision. The standstill period, which will be for a minimum of 10 calendar days, provides time for unsuccessful tenderers to challenge the award decision before the contract is entered into.
The Utilities Contracts Regulations (SI 2006 No 6) provide for aggrieved parties who have been harmed or are at risk of harm by a breach of the rules to take action in the High Court (England, Wales and Northern Ireland).
VI.4.3)Service from which information about the lodging of appeals may be obtained

VI.5)Date of dispatch of this notice:


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