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- DWSP - Bi-Lateral Engagement Summary - UK2
DWSP - Bi-Lateral Engagement Summary - UK2
AI Summary
The UK Ministry of Defence (MOD) is seeking a Managed Service Provider (MSP) to deliver comprehensive water and wastewater management services for MOD estates across the United Kingdom. The MSP will be responsible for all aspects of water and wastewater service provision, including infrastructure maintenance, treatment, and distribution.
This contract will be structured as a hybrid specification, focusing on both desired outcomes and measurable outputs. The duration of the contract is set at 7 years, with two optional 3-year extensions, potentially extending the partnership to 13 years. Pricing for the services will be determined collaboratively through co-creation workshops with potential bidders. These workshops will focus on establishing pricing mechanisms, defining contract performance metrics, outlining risk transfer strategies, and specifying technical requirements.
Importantly, Capital Expenditure (CAPEX) investment required for service delivery will be funded by the MOD for the duration of the contract. This approach aims to mitigate potential price fluctuations tied to regulatory cycles established by Ofwat's Asset Management Periods (AMPs). The overall objective is to ensure continuous and reliable water and wastewater services for the MOD estate while fostering DIO's Intelligent Client Capability and understanding of the MOD's specific water and wastewater needs.
Description
Following the outcome of Bi-Lateral meetings with Industry this notice is being issued to update and clarify the Key Outcomes of this engagement. A DWSP Concept Paper which outlines the intentions of an MSP and how DIO envisions the entity to function has been linked to through an opportunity listing attached.
Estimated date of publication of contract notice: 2025-09-22T23:59:59+01:00
Contract location: UKM
Engagement process description
The Defence Water Services Programme has engaged with a number of potential service providers on the shaping of requirements and delivery of services after the expiry of the Aquatrine PFIs. As the current series of bilateral meetings have come to a close DIO have chosen to publish all clarifications from these meetings to ensure all information released is public:
-The Managed Service Provider (MSP) option has been selected as the preferred option to ensure service continuity to the MOD estate and on the premise of improving DIO's Intelligent Client Capability and gain a greater understanding of MOD's Water and Wastewater requirements. When tender documents are released it will be procured with a hybrid specification that will focus on outcomes and outputs where practicable to do so. A Concept Document further outlining the MSP entity has been attached through an Opportunity Listing on the Defence Sourcing Portal here: https://contracts.mod.uk/esop/guest/go/opportunity/detail?opportunityId=60136
-Pricing mechanisms are still in process of being created and will be the topic of Co-Create workshops during the PSQ stage; DIO is not currently looking at replicating the PFI or FDIS models for DWSP. These workshops will be a collaborative venture between DIO and potential prime tenderers primarily focussing on pricing, contract performance metrics, risk transfer, technical requirements finalisation and innovation. They may also broach the topic of “recalibration points”, elaborated on further in the notice.
-The contract duration has now been confirmed as seven years plus two three year options (7+3+3). The price included now reflects this change.
-DIO is also investigating the idea of “recalibration points” in the contract which would integrate points for contract change when legislation changes in the industry to be as equitable as possible over the whole duration. This will not include any break in contract.
-The suppliers holding non-Aquatrine contracts that fall into the scope of DWSP have received a letter confirming DIO’s plans to integrate these contracts into the DWSP on contract expiry.
-CAPEX Investment is to be funded by the Authority for the duration of the contract. It will be designed and forecasted to avoid the fluctuations of the OFWAT AMP period and prevent boom-bust investment cycles.
-DIO is recommending that all potential bidders familiarise themselves with the PSQ guidance document on the Gov.UK website.
Further information on the procurement and market engagement will be released through Find A Tender Notices at the appropriate time.
Lot: 1
This contract is subject to renewal: Yes
Languages in which tenders or requests to participate may be submitted: En