# Study on using econometrics to calculate variable charges​

> A sourced UK public sector contract award published by OFFICE OF RAIL AND ROAD.

## Key facts

- Buyer: [OFFICE OF RAIL AND ROAD](/buyers/office-of-rail-and-road/contract-awards)
- Supplier: [CEPA LLP](/suppliers/cepa/public-sector-contract-awards)
- Award value: £68,500
- Tender value: £70,000
- Award date: 31 July 2024
- Published: 31 July 2024
- Contract start: 1 August 2024
- Contract end: 31 October 2024
- Stage: awarded
- Procurement category: services
- Notice ID: a29cdd28-6e41-425e-a6a8-0d5428a31ebb-772621
- OCID: ocds-b5fd17-2dbe40b6-c6cf-47bc-8644-64aab530879d

## Description

The scope of this project covers the calculation of VUCs and the specific objective of this work is to establish the feasibility of using econometrics to calculate VUCs\. The first step of the project should apply the econometric approach to calculating marginal costs and then individual vehicles variable usage charges \(VUCs\)\. Following this the study should then undertake a comparison between its findings and the findings of the engineering approach as calculated in PR23 \(as per the CP7 price list\)\. This should also consider the data Network Rail used in this process\. For example, we know that the robustness of econometrics heavily depends on the quality and quantity of the data available and Network Rail may not have this\. Any recommendations should take such issues into account\. Finally, the study should come up with recommendations on whether it is appropriate to use two different approaches and how to do so effectively, taking into account their respective weaknesses and strengths\.

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## Source

[View the original notice on Contracts Finder](https://www.contractsfinder.service.gov.uk/Notice/a29cdd28-6e41-425e-a6a8-0d5428a31ebb-772621)