Background
The UK Government recently completed the complex procurement of first generation smart meter data and communications services for the GB energy market. The resulting licence and 4 IT contracts, worth more than £2.2 billion, provide the share infrastructure required to roll out smart meters across Great Britain by the end of 2020.
Delivering a successful outcome for the uniquely complex GB energy market required an innovative commercial strategy and procurement approach, incorporating simultaneous competitions across multiple disciplines on behalf of diverse service users and in an environment of evolving requirements and an emerging regulatory landscape.
Challenges
Working alongside the client, Wavestone is tackling three major areas of challenge:
- Create a strong market appetite for each competition and encourage best-of-bread suppliers to take part;
- Define a strategy to avoid severe delays to the program;
- Ensure that all stakeholders accept and support the final decisions.
Answers and Key Success Factors
Working collaboratively, and as part of an integrated client-consulting team, Wavestone:
- Created an innovative commercial design for a licensed and regulated delivery body providing centralised data and communications services to industry;
- Structured and ran an unprecedented parallel procurement process which mitigated commercial and delivery risk;
- Developed comprehensive evaluation frameworks to secure buy-in from a wide variety of stakeholders and resulting in a robust outcome capable of withstanding challenge;
- Using this approach, the team secured the required services for an estimated £350 million less than targeted in the business case and met programme timelines that would not have been achievable with a conventional sequential approach.
Client Feedback
“Wavestone was instrumental in developing and agreeing the procurement strategy for the Smart Metering Implementation Programme and delivered the parallel procurement of the communications and data service providers. They provided a rare mix of commercial acumen, procurement expertise, domain knowledge and collegiate ways of working. Their dedication and work rate was unmatched and, alongside DECC colleagues, they provided simply the best combined team that I have ever worked with” – Head of Commercial, DECC
