CityFibre Procurement of Fibre Delivery Partners
Case studies
Information
Deecon were engaged by CityFibre to help lead an Accelerated Tender Award Programme (ATAP) from initial strategy to execution. This tender was to secure contractors to deliver full fibre network infrastructure, as part of CityFibre’s target to reach 8 million premises with full fibre. This programme included 56 tenderers and spanned 38 cities and towns, with a total spend of £1.6bn.
This tender was executed remotely due to the COVID-19 pandemic. Despite this challenging business environment, Deecon delivered its final recommendation report only 3.5 months after the ITT was issued.
We leveraged our expertise in the Construction and Infrastructure sector and worked collaboratively with CityFibre to develop a bespoke Pre-Qualification Questionnaire (PQQ), Invitation to Tender (ITT) and a detailed pricing model.
The pricing model alone included over 226 rates broken down by labour, equipment, materials, risk and productivity. The pricing model also included built-in live heatmaps to inform tenderers of the competitiveness of their rates without revealing CityFibre’s target rates. Our in-house proprietary software, Deecon Core, consolidated and analysed 1.3 million individual pricing points from tenderers over 4 negotiation sessions.
Deecon provided detailed analytics based on tenderers’ pricing and delivered 95 PowerPoint presentations (4,000 slides) to engage the suppliers in clarification sessions to investigate whether rates were inflated or unsustainable. We leveraged the computational power of Deecon Core to calculate multi-lot discounting which ensured that tenderers could share savings of scaled delivery with CityFibre.
Results:
This procurement process delivered significant savings against CityFibre’s long range business plan. Following the success of this project, we were re-engaged by CityFibre to help lead the second phase of their Accelerated Tender Award Programme (ATAP2).