📑Investigation into Network Rail's risk modelling, embedded risk and uncertainty on PR23
Procurement process summary
This process is to purchase Investigation into Network Rail's risk modelling, embedded risk and uncertainty on PR23.
This contract was awarded by 🇬🇧 OFFICE OF RAIL AND ROAD for an amount of GBP 78,900 to 1 supplier. It was published on 2022-09-29 through open
Transparency in this process is reflected in the detailed publication of all aspects of the contract and its results.
Buying entity🇬🇧 OFFICE OF RAIL AND ROAD Buying unitnot reported Publication date2022-09-29 Contest statusnot reported DescriptionThe ORR has recently begun its 2023 periodic review of Network Rail covering the five years from April 2024 to March 2029. A central element of every periodic review is a cost assessment whereby ORR determines the appropriate level of expenditure required to deliver the outputs set by funders. The System Cost & Efficiency team is part of the Capital Investment, Enhancements, Engineering and Asset Management team in ORR and is focussed on achieving an efficient cost assessment as part of the PR23 process. Network Rail delivered round 4.5 of its plan to ORR in Mar 22. This was the final top-down plan and Network Rail has now moved to round 5.0, the first stage of bottom-up planning. ORR will not receive this plan, but wishes to gain confidence that risk and uncertainty is adequately considered as part of Network Rail plans and therefore wishes to commission a study into the methodology used within Network Rail to develop its P(50) plan. Currently an Independent Reporter piece of work is being conducted into the use of unit rates within Network Rail, an overview is shown below. The output from the Independent Reporter, when combined with the outputs described in section 2.3 will provide ORR with a holistic view of risk inherent within Network Rail planning processes. Independent reporter: How are unit cost rates calculated and used Background: Unit rates, when combined with the volumes of work to be undertaken, provide the key costing information for the renewals plan. Local and national rates often exist, their selection criteria is not always documented in Network Rail's Initial Business Plan (IBP) and their limitations / applicability need to be understood. Why is this an issue: Unit rates are a key cost driver. Appropriate selection is imperative, national rates should be the composite average, as such, local rates, when combined should average out at the national rate. Should a more advantageous rate be selected for planning purposes additional (excessive) risk provision would be embedded in estimates. Plan to address: Independent Reporter commissioned What does "good" look like as an outcome for ORR: Clear understanding of the statistical significance of local / national unit rates and their applicability / selection criteria. An understanding of the adherence to these criteria, allows a quantitative view of embedded risk.Awards
This award was granted to Sirius Analysis Limited by OFFICE OF RAIL AND ROAD for an amount of GBP 78,900. The procurement process was conducted through open for the category of services. The award was granted on 2022-09-28. This is award number 1.
| Supplier | Amount | Award date | Award number |
|---|---|---|---|
| 🇬🇧 Sirius Analysis Limited | GBP 78,900 | 2022-09-28 | 1 |
Market context and opportunities
The execution of this contract allows the entity OFFICE OF RAIL AND ROAD to fulfill its public service objectives efficiently.
The open purchase modality ensures that the process is transparent and compliant with regulations.
Transparency in this process is reflected in the detailed publication of all aspects of the contract and its results.
This transparency in public procurement promotes fair competition, prevents corruption, and ensures that public resources are used efficiently for the benefit of citizens.
Additional data
Contract NumberUK_ocds-70d2nz-0d470e1e-8093-49f9-82fb-9c009653dad2-award-1Publication date2022-09-29Contract datenot reportedAward date2022-09-28CategoriesservicesPurchase modalityopenMethod detailsOpenOJEU:OpenNonOJEUStatusnot reportedData sources
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