Section one: Contracting entity
one.1) Name and addresses
Network Rail Infrastructure Ltd
Waterloo General Office
London
SE1 8SW
Contact
Matthew McCarty
SouthernCP7Delivery@NetworkRail.co.uk
Telephone
+44 7701060358
Country
United Kingdom
NUTS code
UKJ - South East (England)
Internet address(es)
Main address
Buyer's address
one.2) Information about joint procurement
The contract is awarded by a central purchasing body
one.6) Main activity
Railway services
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Southern Integrated Delivery (SID) - B&C and E&P
two.1.2) Main CPV code
- 45000000 - Construction work
two.1.3) Type of contract
Works
two.1.4) Short description
Network Rail has carried out a procurement exercise to award the CP7 Southern Integrated Delivery (SID) agreement to deliver our Control Period 7 (CP7) and potentially CP8 renewals portfolio.
The SID will be a fully integrated team based on 'Project 13' principles comprising all categories of railway assets: Signalling, Track, Buildings & Civils (B&C), Electrification and Plant (E&P) and Minor Works. The scope includes the following items: development, design, manufacture, supply, installation, integration, testing and commissioning of the Southern renewals work bank.
These works will be undertaken on Kent, Sussex and Wessex routes, and will primarily be focused on the delivery of the renewals portfolio, however options will be included to enable enhancements also to be delivered, subject to capacity and where the SID is considered the optimum procurement route.
This notice covers the appointment of the Buildings & Civils (Lot 1) and Electrification & Plant (Lot 2) lots, where all appointed Business Partners within the SID have initially signed into a development phase agreement, scheduled from February 2023 to April 2024. The main SID agreement will be 10 years in duration (April 2024 - March 2034) and will commence in CP7 with the inclusion of a break clause prior to the commencement of CP8.
two.1.6) Information about lots
This contract is divided into lots: Yes
two.1.7) Total value of the procurement (excluding VAT)
Value excluding VAT: £5,300,000,000
two.2) Description
two.2.1) Title
Lot 1 Buildings & Civils
Lot No
1
two.2.2) Additional CPV code(s)
- 45000000 - Construction work
two.2.3) Place of performance
NUTS codes
- UKJ - South East (England)
two.2.4) Description of the procurement
Management and Delivery of Building and Civils works on the Railway. These works will be undertaken within the Southern Region on Kent, Sussex and Wessex routes, and will primarily be focussed on the delivery of the renewals portfolio, however options will be included to enable enhancements also to be delivered, subject to capacity and where the SID is considered the optimum procurement route.
two.2.11) Information about options
Options: Yes
Description of options
There is an inclusion of a break clause prior to the commencement of CP8. The option to enact the break clause for Control Period 8 (CP8) will be subject to performance at the time.
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
two.2) Description
two.2.1) Title
Lot 2 Electrification & Plant
Lot No
2
two.2.2) Additional CPV code(s)
- 45234100 - Railway construction works
two.2.3) Place of performance
NUTS codes
- UKJ - South East (England)
two.2.4) Description of the procurement
Management and Delivery of Electrification and Plant works on the Railway. These works will be undertaken within the Southern Region on Kent, Sussex and Wessex routes, and will primarily be focussed on the delivery of the renewals portfolio, however options will be included to enable enhancements also to be delivered, subject to capacity and where the SID is considered the optimum procurement route.
two.2.11) Information about options
Options: Yes
Description of options
There is an inclusion of a break clause prior to the commencement of CP8. The option to enact the break clause for Control Period 8 (CP8) will be subject to performance at the time.
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Negotiated procedure with prior call for competition
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
four.2) Administrative information
four.2.1) Previous publication concerning this procedure
Notice number: 2021/S 000-027900
Section five. Award of contract
Lot No
1
Title
Lot 1 Buildings & Civils
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
15 February 2023
five.2.2) Information about tenders
Number of tenders received: 3
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
VolkerFitzpatrick
Hertford Road
Hertfordshire
EN11 9BX
Country
United Kingdom
NUTS code
- UK - United Kingdom
The contractor is an SME
No
five.2.4) Information on value of contract/lot (excluding VAT)
Total value of the contract/lot: £4,300,000,000
Section five. Award of contract
Lot No
2
Title
Lot 2 Electrification & Plant
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
15 February 2023
five.2.2) Information about tenders
Number of tenders received: 2
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
Octavius Infrastructure Limited
4th Floor 45 London Road
Reigate
RH2 9PY
Country
United Kingdom
NUTS code
- UK - United Kingdom
The contractor is an SME
No
five.2.4) Information on value of contract/lot (excluding VAT)
Total value of the contract/lot: £1,000,000,000
Section six. Complementary information
six.3) Additional information
The value stated in Section II.1.7 at £5,300,000,000 is the estimated overall value of the Enterprise Development Agreement (EDA) and Enterprise Agreement (EA) for these lots. This covers the EDA mobilisation period prior to CP7 commencement (February 2023 – April 2024) and CP7 – CP8 (April 2024 – March 2034), assuming that the break clause for the EA at 5 years is not enacted and the EA runs for the full 10 year period. This is further broken down in Section V.2.4 Lot 1 Buildings & Civils at £4,300,000,000 and Section V2.4 Lot 2 Electrification & Plant at £1,000,000,000.
Whilst Network Rail retains some understanding of the value of the renewals portfolio, the estimated overall value and specific lot values provided within this Contract Award Notice are purely indicative and is subject to change. This is due to a variety of reasons; the Statement of Funds Available (SoFA) is subject to change with the Final Determination taking place in October 2023, there is currently a lack of visibility on the CP8 funding and volume of work, and there is uncertainty on any upcoming changes surrounding Network Rail’s transition into GBR. These, coupled with general current economic volatility affecting international markets, meant that Network Rail has had to make assumptions to provide an estimate on the contract values. For the purposes of assessing the values, Network Rail has assumed that 100% of Southern Region’s renewals portfolio for CP7, known at the time of publication of the Contract Notice, would be progressed (subject to any restrictions stipulated within the Contract Notice). In addition, as the CP8 funding and volume of work is unknown, the projected costs has been made based on the CP7 estimated values.
Recognising these constraints and uncertainties, the actual total value and split across each lot of the contract may vary and therefore be higher or lower than the values shown on this Contract Award Notice.
six.4) Procedures for review
six.4.1) Review body
The High Court
London
WC2A 1AA
Country
United Kingdom
six.4.2) Body responsible for mediation procedures
The High Court
London
WC2A 1AA
Country
United Kingdom
six.4.4) Service from which information about the review procedure may be obtained
The High Court
London
WC2A 1AA
Country
United Kingdom