PRO005166 - ORiW - Design and Integration Partner

This notice relates to tender activity for the provision of certain design and integration services, as explained below. United Utilities Water Limited (UU) proposes to deliver a programme titled Only Rainwater into Windermere (ORiW), with the ambition to make Windermere the cleanest lake in England by removing discharges from both public and private sources, while also addressing highway runoff.

This is a long-term, transformational programme designed to protect the lake's ecology, water quality and amenity value for future generations. The target end state is "Only Rainwater into Windermere", restoring the lake as close as possible to its natural condition and reducing the risk of harmful algal blooms and chemicals.

The programme will deliver resilient wastewater infrastructure that supports communities, businesses and the wider National Park, while creating a potential blueprint for freshwater restoration across England. This Scope of Requirements does not include agricultural impacts; these are being considered by other programmes.

A coalition has been established to develop and deliver the ORiW feasibility phase. It brings together key stakeholders, including UU, local authorities, regulators and environmental organisations, to provide strategic direction and has sponsored the commission of a ‘feasibility study’ to ascertain the art of the possible for achieving ORiW.

Through the commission there are now feasible options for achieving the ambition, to improve water quality, and enhance the environmental resilience of the Windermere catchment, through a proposed ORiW system and wider infrastructure. The proposed ORiW system is made up of multiple workstreams; • First Time Sewerage (FTS), connecting properties to the public sewer network that are currently outside of the network and have never previously been connected to it. • First time Treatment (FTT), for the sites where FTS is not possible, a remote treatment solution will be implemented. • Reduced weather dependent flow, surface water management and management and treatment of highways runoff through the use of nature- based solutions where possible across the catchment. • Construction of tunnel, sewers, rising mains and associated infrastructure. • Upgrade of an existing wastewater treatment works and discharge point.

UU anticipates that the ORiW system and the other strategic wastewater transfer and treatment infrastructure required for the ORiW programme (including the tunnel, rising mains, pumping stations, wastewater treatment facilities, associated drainage works and all ancillary infrastructure), will be promoted through a Development Consent Order (DCO) as a Nationally Significant Infrastructure Project (NSIP), subject to Section 35 approval by Defra. [SM1.1][WD1.2] UU are launching a competitive tendering procedure for the appointment of a Design and Integration Partner (D&IP) who will be responsible for supporting the next phase of this programme, designing the ORiW system, including whole system integration, to achieve the programme vision.

UU requires the D&IP to complete feasibility, outline design, constructability and other related activities to obtain the necessary approvals and consents for the programme to proceed to the delivery phase for the preferred solution. Accordingly, the D&IP will also be responsible for the delivery of the DCO and planning approvals.

As such, the outline design needs to fully support and integrate with the DCO, Town and Country Planning Act (TCPA) and land acquisition and access processes. At a high level, the initial scope of requirements for the D&IP will include, but may not be limited to the following activities across each of the workstreams of the ORiW system; • Outline Design • Planning, Consents and Land • Environmental Impact Assessments (EIA) and surveys • Stakeholder and Customer Engagement • Land Agency, Referencing and Surveying • Preparation and submission of planning applications and all supporting information • Preparation and submission of the DCO and all supporting information • Site Investigation (SI) • Early Contractor involvement (ECI) • Supporting UU in meeting reporting requirements with Ofwat i.e. PR29 Price Review • Supporting UU with any required preparation, development and submission of information for the Water Industry National Environment Programme (WINEP) and Drainage and Wastewater Management Plan (DWMP) UU require a D&IP who has the capability and experience to ensure coordination over integration of all elements of the ORiW system and all other related activities that are required.

The D&IP will also need to be capable of leading the overall delivery strategy, managing interfaces across the programme, maintaining design consistency, and ensuring that the complete solution meets the requirements to obtain the necessary approvals and consents. UU is continuing to consider its approach to the delivery phase of the programme and anticipates that it may need ongoing support from the D&IP into the delivery phase to provide continuity throughout the programme lifecycle.

The precise form that this ongoing support may take will be dependent on the precise delivery model that UU adopt for the delivery phase, but the role to be played by the D&IP may include typical professional services support of the nature to be expected of a design and integration professional services consultant acting for a client in relation to the delivery phase of a major engineering and construction project, for example (without limitation) either: • The D&IP acting as system integrator and detailed design partner to either UU and/or any prime contractor engaged in relation to the programme. • The D&IP acting as a system integrator partner to provide support across different workstreams and work packages forming part of the programme so that the overall programme is delivered as seamlessly as possible. • Providing alternative services to support UU’s client-side management of delivery partners engaged to undertake the delivery phase of the programme. From a contractual perspective, this may entail: • Continuing consultancy services (e.g. oversight of delivery contractors or supporting the coordination between delivery contractors and/or developing the detail of design work undertaken during the development phase) provided by the D&IP on the same, or similar, call-off contract terms and conditions as are prescribed under the framework agreement for the development phase of the Programme; or • An evolution of the delivery model and associated call-off terms and conditions envisaged under the framework agreement for the development phase of the Programme to align to the Client’s proposed delivery model for the delivery phase of the Programme, including for example: o requiring the D&IP to enter into a strategic sub-contract with one or more delivery contractors appointed by the Client for the provision of detailed design services; or o the provision by the D&IP of design and integration services to the Client as part of an integrated “Enterprise” delivery model incorporating the Client, D&IP and delivery contractors and designed to create aligned incentives across all such participants.

An outline of the potential structure and commercial proposition of this Enterprise model, including the call-off contract terms and conditions that could be used to effect it, will be set out in the framework agreement on an indicative basis (recognising that the precise terms and conditions of any call-off contract and the model more broadly would be developed separately by UU and refined through engagement with other potential Enterprise participants). Whatever model is adopted, the Client will ensure that the balance of risk and reward, and the potential commercial and financial impact on the D&IP, is similar and broadly equivalent to the balance struck in the call-off terms and conditions for the development phase.

This means that UU will endeavour to ensure that, as and when any call-off terms and conditions are entered into, the D&IP would not be materially better off under the enterprise or alliance type model, in all material respects, compared to the position under a continuation of the development phase arrangements. Anticipated value of each role; • Design & Integration Partner (pre delivery phase) > 4 years = circa £60-100m • System Integrator Partner (during delivery phase) > up to a further 9 years in increments at UUs discretion = circa £100m (subject to CPIH) • System Integrator and Detailed Design Partner (during delivery phase) > up to a further 9 years in increments at UUs discretion = circa £500m (subject to CPIH) Please note that the total value is given as a range (£60m to £600m) which includes the minimum and maximum total estimated values across those roles. As explained above, the system integrator partner (during delivery phase) and system integrator and detailed design partner roles are alternatives and so the combined value of each is not included in the total (only the higher of the two).