Water Industry Forum and Turner & Townsend identity key factors for direct procurement success

Early engagement with the market, supporting the supply chain to grow capacity and capability, and putting greater focus on social value emerged as three new key success factors for Direct Procurement for Customers (DPC) in a report published by the Water Industry Forum in association with Turner & Townsend.

The report followed a series of expert, multi-stakeholder roundtable meetings convened by WIF and Turner & Townsend. The three new key success factors set out joined five previously identified which the report said still hold true: an appropriate Competitively Appointed Provider agreement; a clear approach to commercial decisions for water companies; consistent and clear economic regulation; ensuring there is market appetite from suppliers and financiers; and driving efficiencies and sharing lessons through the DPC process.

The WIF noted that a “stable [DPC] pipeline is yet to form, however the first three pathfinders are bringing evidence and maturity to the delivery model – with the first tender attracting large interest from a wider European supply chain”.

Other headline discussion points included:

• ongoing scrutiny of value for money and overall affordability.

• attractiveness of SIPR versus DPC.

• complex interfaces between multiple water companies and different categories of assets pulled into a single DPC.

• how to improve efficiencies between the procurement and planning process.

WIF and Turner & Townsend plan to host another learning and discussion session in late 2023. In them meantime todays publication can be downloaded from British Water’s website HE. HERE.