Awarded contract

Concession Agreement for the provision of outdoor advertising and support and maintenance services

  • GOVIA THAMESLINK RAILWAY LIMITED

F25: Concession award notice

Notice reference: 2024/S 000-005466

Published 20 February 2024, 9:29am



Section one: Contracting authority/entity

one.1) Name and addresses

GOVIA THAMESLINK RAILWAY LIMITED

24 Monument Street

LONDON

EC3R8AJ

Contact

Carl Baker

Email

carl.baker@gtrailway.com

Country

United Kingdom

NUTS code

UKI31 - Camden and City of London

Companies House

07934306

Internet address(es)

Main address

www.gtrailway.com

one.4) Type of the contracting authority

Other type

Train Operating Company

one.5) Main activity

Other activity

Railway Services


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Concession Agreement for the provision of outdoor advertising and support and maintenance services

Reference number

PSC0020

two.1.2) Main CPV code

  • 79341200 - Advertising management services

two.1.3) Type of contract

Services

two.1.4) Short description

Govia Thameslink Railway (GTR) is publishing this Concession Award notice to notify the market of the award of a Concession Agreement for the provision of outdoor advertising and support and maintenance services (Contract) to the incumbent concessionaire, JC Decaux Limited (Concessionaire).

The object of the Contract is to create a long-term revenue generating opportunity, the benefit of which will be shared between the Concessionaire and GTR. GTR has existing out of home (OOH) advertising assets across its network including at stations and on land adjacent to tracks, roads, bridges and stations which the Concessionaire manages, maintains and invests in to maximise revenue. The estate comprises of 163 digital screens including D6, Motion and Transvision, plus over 1300 static displays at more than 200 stations across the GTR network.

The award of the Contract will require the Concessionaire to make a minimum investment of 50 D6 screens over the first 3 years of the contract term.

Due to the locations of the estate, GTR requires the Concessionaire to be verified through the Railway Industry Supplier Qualification Scheme (RISQS). This demonstrates that suppliers have the necessary technical capabilities and have demonstrated compliance to partner with the railway industry.

The award by GTR of the Contract to the Concessionaire, JC Decaux Limited, is for a duration of up to and inclusive of 31 March 2028. This will allow for continuity of service where market engagement has demonstrated that there is an absence of competition.

two.1.6) Information about lots

This concession is divided into lots: No

two.1.7) Total value of the procurement (excluding VAT)

Value excluding VAT: £17,000,000

two.2) Description

two.2.3) Place of performance

NUTS codes
  • UKH - East of England
  • UKI - London
  • UKJ - South East (England)

two.2.4) Description of the procurement

Govia Thameslink Railway (GTR) is publishing this Concession Award notice to notify the market of the award of a Concession Agreement for the provision of outdoor advertising and support and maintenance services (Contract) to the incumbent concessionaire, JC Decaux Limited (Concessionaire).

The object of the Contract is to create a long-term revenue generating opportunity, the benefit of which will be shared between the Concessionaire and GTR. GTR has existing out of home (OOH) advertising assets across its network including at stations and on land adjacent to tracks, roads, bridges and stations which the Concessionaire manages, maintains and invests in to maximise revenue. The estate comprises of 163 digital screens including D6, Motion and Transvision, plus over 1300 static displays at more than 200 stations across the GTR network.

The award of the Contract will require the Concessionaire to make a minimum investment of 50 D6 screens over the first 3 years of the contract term.

Due to the locations of the estate, GTR requires the Concessionaire to be verified through the Railway Industry Supplier Qualification Scheme (RISQS). This demonstrates that suppliers have the necessary technical capabilities and have demonstrated compliance to partner with the railway industry.

The award by GTR of the Contract to the Concessionaire, JC Decaux Limited, is for a duration of up to and inclusive of 31 March 2028. This will allow for continuity of service where market engagement has demonstrated that there is an absence of competition.

two.2.5) Award criteria

Concession is awarded on the basis of the criteria described below:

  • Criterion: N/A

two.2.7) Duration of the concession

Start date

1 April 2024

End date

31 March 2028


Section four. Procedure

four.1) Description

four.1.1) Form of procedure

Award procedure without prior publication of a concession notice in the cases listed below

  • The services can be provided only by a particular economic operator for the following reason:
    • absence of competition for technical reasons

Explanation:

The regulation provides that a concession notice is not required for the award of a concession contract where the works or services can be supplied only by a particular economic operator for any of the following reasons:

Competition is absent for technical reasons; and

Where no reasonable alternative or substitute exists; and

The absence of competition is not the result of an artificial narrowing down of the parameters of the concession contract award.

Due to the locations of the advertising estate, some within boundaries of the Operational Railway, GTR requires the concessionaire to be verified through the Railway Industry Supplier Qualification Scheme (RISQS). This demonstrates that suppliers have the necessary technical capabilities, have demonstrated compliance to partner with the railway industry. RISQS qualification ensures that organisations comply with the legislation, railway standards and requirements placed upon them to safely and effectively work on railway property and infrastructure. For example, capability and competence of working within the boundaries of the Operational Railway, protection of staff using the Safe System of Work Plans (SSoWP), Health and Safety Management System that has been assured / certified to the relevant standard. This narrows the potential pool of suppliers to only a few suppliers that meet the necessary requirements around technical capabilities.

The current contract requires the incumbent to provide significant investment in the existing asset estate which is becoming dated and requires regular maintenance, as well as in new technology solutions and equipment. This award requires the provider to make a minimum investment of 50 D6 screens over the first 3 years of the new Contract.

Based on supplier consultation and feedback no reasonable alternative or substitute exists. From market engagement alternative suppliers cited limited resource, capacity and lack of interest in this rail industry opportunity. General feedback was that a longer contract period was required for suppliers to recoup on the investment made and see returns, noting the initial cost of change and mobilisation as well as asset replacement.

Therefore, for continuity of the service GTR has awarded the contract up to and inclusive of 31 March 2028.

four.1.11) Main features of the award procedure

Linked notice: voluntary ex ante transparency notice. Notice reference: 2023/S 000-035983 was published on Find a Tender Service on 6 December 2023.

GTR published the voluntary ex ante transparency notice to notify the market of its intention to award a Concession Agreement for the provision of outdoor advertising and support and maintenance services (Contract) to the incumbent concessionaire, JC Decaux Limited (Concessionaire).


Section five. Award of concession

A concession/lot is awarded: Yes

five.2) Award of concession

five.2.1) Date of concession award decision

16 November 2023

five.2.2) Information about tenders

Number of tenders received: 1

The concession has been awarded to a group of economic operators: No

five.2.3) Name and address of the concessionaire

JCDECAUX UK LIMITED

991 Great West Road

Brentford

TW8 9DN

Country

United Kingdom

NUTS code
  • UK - United Kingdom
Companies House

01679670

The concessionaire is an SME

No

five.2.4) Information on value of concession and main financing terms (excluding VAT)

Total value of the concession/lot: £17,000,000

Any other details relevant to the value of the concession

The total value of the concession relates to the estimated turnover retained by the Concessionaire.


Section six. Complementary information

six.4) Procedures for review

six.4.1) Review body

High Court

7 Rolls Buildings, Fetter Lane

London

EC4A 1NL

Telephone

+44 2079477156

Country

United Kingdom

six.4.2) Body responsible for mediation procedures

High Court

7 Rolls Buildings, Fetter Lane

London

EC4A 1NL

Telephone

+44 2079477156

Country

United Kingdom