Water allocation project

Water allocation project

The project is concerned with determining what effective water trading could look like using market forces to enable economic allocation of water resources in supply constrained areas respecting existing environmental legislation.

UK-Peterborough: economic research services

2012/S 17-027531

Contract notice – utilities


Directive 2004/17/EC

Section I: Contracting entity

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

Anglian Water Services Limited
Thorpe Wood House
Contact point(s): Roz Roden
For the attention of: Roz Roden
PE3 6WT Peterborough
Telephone: +44 7860433084
E-mail: rroden@anglianwater.co.uk
Fax: +44 1733414506

Internet address(es):

General address of the contracting entity: www.anglianwater.co.uk

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

Section II: Object of the contract

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

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

Service category No 10: Market research and public opinion polling services
Main site or location of works, place of delivery or of performance: East of England.

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

The notice involves the establishment of a framework agreement
II.1.4)Information on framework agreement

Framework agreement with a single operator
Duration of the framework agreement

Duration in months: 6
Estimated total value of purchases for the entire duration of the framework agreement

Estimated value excluding VAT
Range: between 30 000 and 200 000 GBP

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

The University of Cambridge Programme for Sustainability Leadership (CPSL) has launched a collaboratory on sustainable water stewardship, chaired by Lord Selborne, Treasurer of the All Party Parliamentary Water Group. A key strand of work will focus on water allocation through water trading. The water abstraction reform agenda is prominent with the recent launch of the Water White Paper, but this project seeks to generate evidence to inform policy rather than to make specific policy recommendations. Anglian Water is a founding sponsor and is keen to build on previous published work such as A Right to Water and Trading Theory for Practice.
The project is concerned with determining what effective water trading could look like using market forces to enable economic allocation of water resources in supply constrained areas respecting existing environmental legislation.
We have identified two catchments to focus on. East Suffolk CAMS Area (specifically WRMU 13, Upper River Gipping and Lower River Gipping) and Upper Ouse and Bedford Ouse CAMS area.
We are interested in hearing from consortia or single entities who feel that they can deliver this project.
II.1.6)Common procurement vocabulary (CPV)

79311400, 79300000

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:

There will be a pilot phase with clear deliverables due before 29.6.2012 and a second phase of work if the pilot outputs are deemed successful with final outputs due by end of October 2012. Demonstrating the added value the second phase will bring above and beyond the pilot phase will be important. It is expected that both phases will require two streams of work to be managed concurrently.
1) stakeholder engagement. This will entail sourcing and engaging a representative sample of abstractors located within the catchments to understand their current and predicted demand for water and the value they place on it to build up an understanding of the potential market and
2) concept proofing an effective water trading platform. This will need to consider how it would interface with existing hydrological models and deliver minimal transaction costs to users.
As part of this expression of interest consortia or single entities will need to demonstrate their capability for employing innovative methodologies, cutting edge thinking, and sound stakeholder engagement strategies to evaluate the effectiveness of a variety of market and regulatory arrangements within a five year time horizon to explore the appetite for trading and the practicalities for its delivery. Core competencies required are as follows:
Innovative methodologies.
The actions and decisions of today will have far reaching implications for the sustainability of future water allocation. Therefore, in order to best evaluate water trading feasibility, it is important that we consider a range of market and regulatory arrangements and encourage innovative methodologies that are not confined by todays framework. Convincing us of your competency in delivering tailor made and innovative solutions to meet such sustainability challenges is a key prerequisite.
Cutting edge thinking.
The successful consortium or entity will need to demonstrate knowledge of previous water trading schemes internationally to reveal a deep understanding of existing examples of success and failure and the implications for this project to ensure best practice.
Stakeholder engagement of abstractors.
The appointed consortium or entity will need to convince us that it can effectively source key people on the ground, build their trust and ensure their continued buy in with the project. Throughout this process, the credibility of the work and reputation of the organisations involved in the work must be safeguarded and enhanced.
Project Management and Working Group.
Anglian Water is providing in kind support in addition to funding for this work in the form of a dedicated part time Project Manager. The aim of this is to: ensure maximum buy in of key stakeholders; maximise delivery efficiency and; capitalise on take up of the project outputs internally and externally. In addition, CPSL, has invited representatives of stakeholder organisations to form a working group (as below) to steer the project and provide a degree of in kind support to maximise project success. The consortium must consider how it would utilise such hands on support.
Working Group.
Jean Spencer (Chair) Anglian Water.
Martin Silcock Anglian Water.
Shelia von Rimscha CPSL.
Margaret Adey CPSL.
Jenny Bashford National Farmers Union.
Rob Cunningham RSPB.
Mike Woolgar Atkins.
Denis Chamberlain Royal Agricultural Society for England.
Phillip Dixon Ofwat (seconded to Environment Agency).
Keith Weatherhead Cranfield University.
Henry Leveson Gower Defra.
Jane Hunt Environment Agency.
Anna Wetherall Natural England.
Rose Trimlett WWF-UK.
Henry Cator Association of Drainage Authorities.
John Packman Broads Authority.
Aims and objectives.
The key aim of the research project is summarised in the research question:
What is an effective water trading system and what are the implications for stakeholders concerned with sustainable water abstraction?
Underpinning this aim are the following objectives:
1 To establish the feasibility of an effective trading system at a catchment level;
2 To provide stakeholders with a shared, credible, evidence base about water trading at a catchment level.
Estimated value excluding VAT
Range: between 30 000 and 200 000 GBP
II.2.2)Information about options

Options: no
II.2.3)Information about renewals
II.3)Duration of the contract or time limit for completion

Duration in months: 6 (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:
III.1.2)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:
III.1.3)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:

For consortia joint and severable liability will be required.
III.1.4)Other particular conditions:

The performance of the contract is subject to particular conditions: yes
Description of particular conditions: Once a consortium or entity is in place, it should be ready to take on the project in two phases. The first phase being the pilot phase with two clear deliverables required in the form of report and powerpoint presentation. The consortium will need to be available to present pilot findings to a CPSL high level stakeholder event on Friday 29 June in London. If the pilot is considered a success, the second phase will be commissioned with final outputs due by the end of October 2012. If the pilot is not considered successful, an exit strategy will come into force.
III.2)Conditions for participation
III.2.1)Personal situation of economic operators, including requirements relating to enrolment on professional or trade registers
III.2.2)Economic and financial ability
III.2.3)Technical capacity

Information and formalities necessary for evaluating if the requirements are met: Please see section V1.3 Additional Information.
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

Payable documents: no
IV.3.4)Time limit for receipt of tenders or requests to participate

29.2.2012 – 12:00
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 tenders

Persons authorised to be present at the opening of tenders: yes
AWS personnel.

Section VI: Complementary information

VI.1)Information about recurrence

This is a recurrent procurement: no
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:

In order to express interest and be considered for this project, respondents must demonstrate capability in a number of core areas. They are obliged to provide the following information in a succinct and integrated document by the deadline both in hard copy format (two copies) and also by e-mail.
1. Acknowledging the range of cross disciplinary skills needed on such a project respondents should provide details of their consortium, if applicable. This should clearly state the lead organisation to include names and contact details for lead staff members and how they propose working efficiently as a project team and interfacing with the Project Manager and Working Group;
2. Summary of relevant experience, skills and knowledge of key personnel who would be directly involved in the delivery of the project in the form of brief CVs;
3. To demonstrate capability of developing and tailor making innovative methods to solve sustainability challenges, you should provide two examples where it has successfully achieved such innovations and the on going positive impact of these for previous clients;
4. To demonstrate your knowledge of previous water trading schemes internationally, please define what you understand by the term effective water trading;
5. Using previous examples from other projects executed, please explain how you would develop a robust stakeholder strategy to effectively source key people on the ground, build their trust, and ensure their continued buy in with the project;
6. Please demonstrate how your credentials lend themselves to demonstrating ingenuity in delivering our project objectives against a tight budget. You may for example consider ways to provide in kind support for the work, recognising the spin off benefits an innovative project of this nature may represent. The estimated budget window for this work is between 30 000 and 200 000 GBP with a low cost option preferred. Short listed respondents will be asked to provide a graded work programme with budget breakdowns against three proposed budgets to reflect gold, silver and bronze approaches, noting that ultimately the contract shall be let on a fixed price basis.
VI.4)Procedures for appeal
VI.4.1)Body responsible for appeal procedures
VI.4.2)Lodging of appeals
VI.4.3)Service from which information about the lodging of appeals may be obtained

VI.5)Date of dispatch of this notice:24.1.2012