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Tender performance, risk and price evaluation of London's orbital motorway PFI contract
London, United Kingdom
Partners
- Highways Agency (now National Highways)
- PwC
- Hyder (acquired by Arcadis)
- Halcrow (acquired by Jacobs)
Services
- Due diligence
- Tender evaluation
- Advanced risk analytics
- Asset performance and optimisation
Challenge
The M25 DBFO contract covered the operation, maintenance, and improvement of London's orbital motorway under a long-term concession. The Highways Agency needed specialist support to evaluate the performance, risk, and pricing elements of the tender submissions, ensuring that the selected bidder offered the best value for money while managing the inherent risks of a 30-year concession.
Solution
Floreer provided analytical and advisory support to the evaluation team, assessing the bidders' risk management approaches, performance management frameworks, and pricing models. The team conducted detailed due diligence on the financial and commercial elements of each submission, including sensitivity and scenario analysis on the proposed pricing structures.
Outcome
The evaluation process resulted in the selection of a preferred bidder that offered a robust, risk-informed approach to managing the M25 over the concession period. The analytical rigour of the evaluation gave the Highways Agency confidence that the contract represented value for money and that key risks were appropriately allocated.