Contract 1. Detection and Enforcement Infrastructure Agreement
Supplier
Contract value
Before modification:
- £100 excluding VAT
- £120 including VAT
After modification:
- £263,860,000 excluding VAT
- £316,632,000 including VAT
263,859,900% increase
Above the relevant threshold
Contract modification date (estimated)
9 March 2026
Effective date of the modification
20 September 2026
Contract dates
Before modification:
- 16 December 2014 to 19 September 2026
- 11 years, 9 months, 4 days
After modification:
- 16 December 2014 to 19 September 2028
- Possible extension to 19 September 2029
- 14 years, 9 months, 4 days
25.51% increase
Justifications for contract modification
- Additional goods, services or works
Reason that these justifications apply
The services provided under the D&EI agreement ("Agreement") are a critical part of the Greater London Road User Charging (RUC) schemes operated by Transport for London (TfL). These RUC schemes are focused on the improvement of air quality, tackling congestion and improving safety on London's roads.
Following a 2014 competitive process under the Public Contracts Regulations 2006, TfL awarded the Agreement to Siemens Plc. The Agreement was novated from Siemens Plc to Siemens Mobility Limited in 2018 and then Yunex Limited ("Yunex") in 2023 when Siemens divested the business unit which provided the services. The Agreement has been varied previously under the Public Contracts Regulations 2015.
TfL has commenced a procurement for the replacement of the Agreement ([add link to relevant notice]) ("Procurement"). Until TfL concludes the Procurement and a replacement supplier is ready to take on the D&EI services, TfL intends to extend the Agreement, which TfL considers is permissible under s.74 Procurement Act 2023 (PA) on the basis of the permitted ground at para 8 of Schedule 8 to PA as further described below.
The proposed changes to the Agreement will extend the term of the Agreement from a current expiry of 20 September 2026 for up to another 3 years (i.e. to 19 September 2029). TfL does not intend to change other Agreement terms except as required to maintain the commercial and economic balance of the Agreement over the extended period (eg through indexation). The proposed modification will not change the overall nature of the Agreement.
Application of para 8 of Sch 8 PA
TfL considers it is permitted to modify the Agreement under para 8(1) of Sch 8 of PA because the proposed modification meets all four limbs of the test set out therein.
Limb A of the test is met because the modification will maintain the current business-as-usual service scope with no material variations to the Agreement other than those needed to effect the extension.
Limb B is met because there would be compatibility problems as between the existing camera assets and systems (designed and supplied by Yunex) and any alternatives if a supplier other than Yunex were awarded a contract instead of the proposed extension.
Limb C(i) is met because those compatibility problems would lead to disproportionate technical difficulties and other significant inconveniences, namely:
• a new supplier would need to develop a new instation system that interfaced with the existing camera network, which would take c.18-24 months, leaving a service gap of c.22-28 months during the proposed extension. This work could not be completed before September 2026
• alternatively, replacement of the existing camera network (which may allow a supplier to use an existing instation system) would require replacement of c.3,800 cameras, which taking into account manufacturing timescales would take more than 12 months
• the introduction of entirely new systems and cameras would introduce risks that would take more time to test and assure (across engineering, operations, cyber and safety) than available against the Agreement's current expiry date
• any service gap arising from the above activities would affect TfL's ability to collect fees for the RUC schemes, affect the carrying out of TfL's statutory duties in relation to road traffic management, and have knock-on impacts on other contracts.
Limb C(ii) is met because TfL would be incur substantial duplicate costs. Replacing either the instation system or the camera assets would result in significant capital expenditure, which TfL would incur again on completion of the Procurement. TfL would also be duplicating other procurement costs, as it would be carrying out simultaneous procurements (one for short extension (probably on a direct award basis) plus the Procurement) for very little, if any, time saving, while still not avoiding a service gap that would jeopardise TfL's ability to carry out its statutory duties and operate the RUC schemes.
Limb D is met because the proposed modification does not increase the estimated value of the Agreement by >50% (the before modification value in this notice links to the UK7 notice (published as a below-threshold notice) which was used for administrative purposes to generate an OCID and does not reflect the Agreement's actual pre-modification value).
Other information
Conflicts assessment prepared/revised
Yes
Supplier
YUNEX LIMITED
- Companies House: 13199800
- Public Procurement Organisation Number: PGWD-4453-BRJJ
Sopers Lane
Poole
BH17 7ER
United Kingdom
Email: e-tendering@yunextraffic.com
Website: https://www.yunextraffic.com/uk/en
Region: UKK24 - Bournemouth, Christchurch and Poole
Small or medium-sized enterprise (SME): No
Voluntary, community or social enterprise (VCSE): No
Contract 1. Detection and Enforcement Infrastructure Agreement
Contracting authority
Transport for London
- Public Procurement Organisation Number: PHMT-6197-NWNZ
5 Endeavour Square
London
E20 1JN
United Kingdom
Region: UKI41 - Hackney and Newham
Organisation type: Public authority - central government