AMP7 Procurement Programme

Summary

Deecon were engaged to assist the procurement process for Bristol Water’s Asset Management Plan 7 (AMP7) Network Maintenance contract. Bristol Water were seeking to deliver sustainable cost savings whilst meeting regulatory targets set by Ofwat, the Environment Agency and the Drinking Water Inspectorate. These included flooding, leakage and pollution events.

Deecon worked collaboratively with Bristol Water to support this OJEU regulated procurement process. The process delivered savings against the business plan target whilst ensuring high quality delivery standards.

Situation & Approach

Deecon were engaged by Bristol Water to facilitate the procurement of their AMP7 Network Maintenance contract delivery partners. Deecon worked in an integrated business team with Bristol Water staff to deliver the 9-month OJEU tender process. This included commercial strategy, the design of the PMO function and supporting the development of the AMP7 contract.

Deecon led the production of the ITT tender documentation with a particular focus on pricing model development to capture commercial bids. This enabled extensive commercial analysis of how Bristol Water could further align their business processes to industry best practice. The commercial analysis process involved the layering of multi-lot adjustment factors and detailed analyses of productivity, labour, plant, materials and model jobs. This produced a well defined supply chain profile to achieve Bristol Water’s aims and ensure compliance with the OJEU process.

During the tender, we harnessed our in-house proprietary data consolidation tool, Deecon Core, to offer live in-depth pricing analysis to both Bristol Water and the tenderers during collaborative clarification sessions.

Results

Deecon’s collaborative commercial and technical sourcing strategy ensured adherence to OJEU regulations
The tender process represented a significant cost reduction in AMP7 compared to AMP6 to AMP6