Southern Water alerts suppliers to over £9bn worth of contracts for AMP8

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The water company has this week announced the five contractors appointed to its £600M medium non-infrastructure works framework, but it is now embarking on a refresh of its main frameworks for AMP8, which it says will be “the largest investment programme it has ever undertaken”. Its current frameworks used for engineering, design and construction services have been in place for almost 10 years and expire on 31 March 2025 – the end of AMP7.

As well as getting ready for for AMP8, Southern Water is preparing for Ofwat’s 2024 price review (PR24), by working with regulators and stakeholders to confirm the investment that will be available and the projects that will need to be undertaken. It says “the PR24 process will benefit from having the AMP8 supply chain in place to assist with ongoing planning and transition to AMP8”.

The largest of Southern Water’s AMP8 frameworks is the Capital Programme Delivery, which is worth £7.5bn. This will be a collaborative framework established with between two and four strategic delivery partners (SDP) to cover the water company’s base maintenance programme, as well as six main areas of its PR24 business plan. Three of these six areas are related to wastewater: the nutrients programme, combined sewer works and bio resources. The other three are related to water: water recycling, upgrading four strategic water production sites and network resilience.

SDPs on the Capital Programme Delivery framework will help Southern Water to develop and choose solutions for complex elements of its portfolio and then deliver the design and construction work to achieve the outcomes required. SDPs will be required to bring a coverage of specialist skills and capacity to deal with nature-based solutions, partnership working, net zero and catchment-based issues.

The lot structure for the Capital Delivery Framework will be determined during forthcoming market engagement. Southern Water has suggested that the lots may be broken down into areas of specialty such as water process, wastewater process and networks, but it intends to keep the scope of the framework flexible.

The water company anticipates that it will allocate projects, programmes or tranches of work to the selected suppliers shortly after the final determination is received from its regulator.

Southern Water is also refreshing its Capital Infrastructure Framework worth £500M. This will be a collaborative framework for low-complexity infrastructure design and build schemes such as routine asset replacement works that require limited design and can be readily packaged and allocated by Southern Water.

The works and services for this framework shall consist of both water and wastewater infrastructure related activities including; pre-construction survey and investigation, outline and detailed design, civils, mechanical, electrical, controls and instrumentation and commissioning works and services.

As on the Capital Delivery Framework, suppliers on the Capital Infrastructure Framework must be able to provide technical services and capabilities relating to the development and delivery of nature based solutions, catchment based solutions, and adoption of low carbon technologies or working methods to assist Southern Water in its net zero ambitions.

Southern Water is also gearing up the procurement process for its £250M Professional Services Framework for AMP8. Professional service providers appointed will assist in developing Southern Water’s strategies and plans while also accelerating the development of the company’s internal capability in the areas of asset management, technical engineering and programme management.

This is reflected in the three lots of the Professional Services Framework: asset management, project and programme management and technical engineering and design. All will be collaborative with up to three professional service providers appointed to each.

Alongside these framework refreshes, Southern Water has also alerted contractors to its £900M contract for network services for water and wastewater networks. This will see suppliers assist in the maintenance and management of its clean and wastewater networks. Works will include:

• Reactive operate, repair and maintenance services (including reinstatements)
• Planned preventative and inspection services
• Planned new services/connections for the water supply and distribution network

The contract will be divided into three lots: wastewater network services, water network services and network leakage and active leakage control.

Southern Water said: “In procuring new frameworks, we are seeking to build on positive changes made in AMP7, but also to look beyond AMP8 and take important steps to reflect supplier feedback, moving towards excellence in all that we do. The new arrangements will offer the option of running for AMP9.”

The estimated date of contract publication for all of the above frameworks and contracts is 4 April.

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