Future opportunity

Southern Integrated Delivery (SID)

  • Network Rail Infrastructure Ltd

F04: Periodic indicative notice – utilities (periodic indicative notice only)

Notice reference: 2021/S 000-024528

Published 1 October 2021, 10:45pm



Section one: Contracting entity

one.1) Name and addresses

Network Rail Infrastructure Ltd

1 Eversholt Street

London

NW1 2DN

Contact

Matthew McCarty

Email

SouthernCP7Delivery@NetworkRail.co.uk

Telephone

+44 7701060358

Country

United Kingdom

NUTS code

UK - United Kingdom

Internet address(es)

Main address

www.networkrail.co.uk

Buyer's address

www.networkrail.co.uk

one.2) Information about joint procurement

The contract is awarded by a central purchasing body

one.3) Communication

Additional information can be obtained from the above-mentioned address

one.6) Main activity

Railway services


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Southern Integrated Delivery (SID)

two.1.2) Main CPV code

  • 45000000 - Construction work

two.1.3) Type of contract

Works

two.1.4) Short description

Network Rail intends to establish a value driven, collaborative integrated relationship that will deliver our Control Period 7 (CP7) and potentially CP8 renewals portfolio.

Network Rail Southern Region is seeking to achieve a step change in the way renewals are delivered on its network, making the most of modern methods of working and technology, collaboration and relationship focused contracting, and a portfolio focus to achieve the objectives of the Strategic Business Plan (SBP).

Southern Integrated Delivery (SID) will be a fully integrated team based on ‘Project 13’ principles comprising all categories of railway assets: Signalling & Telecoms, Track, Buildings & Civils (B&C), Electrification and Plant (E&P) and Minor Works. The SID will bring together the strengths, capabilities, and knowledge of the supply chain and Network Rail and the scope is expected to include some or all 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 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.

The establishment of the SID will be undertaken in tranches, the first of which pertaining to this notice is for the procurement of a Buildings & Civils and Electrification and Plant delivery Partner.

two.1.5) Estimated total value

Value excluding VAT: £9,600,000,000

two.1.6) Information about lots

This contract is divided into lots: Yes

Maximum number of lots that may be awarded to one tenderer: 1

two.2) Description

two.2.1) Title

Buildings & Civils

Lot No

1

two.2.2) Additional CPV code(s)

  • 45200000 - Works for complete or part construction and civil engineering work
  • 45210000 - Building construction work
  • 45234100 - Railway construction works
  • 50700000 - Repair and maintenance services of building installations
  • 51000000 - Installation services (except software)
  • 71000000 - Architectural, construction, engineering and inspection services
  • 71300000 - Engineering services
  • 71311230 - Railway engineering services
  • 71500000 - Construction-related services
  • 79420000 - Management-related services

two.2.3) Place of performance

NUTS codes
  • UKI - London
  • 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.2.14) Additional information

The main SID agreement will be 10 years in duration and will commence in CP7 with the inclusion of a break clause prior to the commencement of CP8. The options to enact the break clause for Control Period 8 (CP8) will be subject to performance and funding approval at the time.

two.2) Description

two.2.1) Title

Electrification and Plant

Lot No

2

two.2.2) Additional CPV code(s)

  • 45200000 - Works for complete or part construction and civil engineering work
  • 45210000 - Building construction work
  • 45232220 - Substation construction work
  • 45232221 - Transformer substation
  • 45234100 - Railway construction works
  • 45310000 - Electrical installation work
  • 45315100 - Electrical engineering installation works
  • 45317000 - Other electrical installation work
  • 50532000 - Repair and maintenance services of electrical machinery, apparatus and associated equipment
  • 50700000 - Repair and maintenance services of building installations
  • 51000000 - Installation services (except software)
  • 71000000 - Architectural, construction, engineering and inspection services
  • 71300000 - Engineering services
  • 71311230 - Railway engineering services
  • 71500000 - Construction-related services
  • 79420000 - Management-related services

two.2.3) Place of performance

NUTS codes
  • UKI - London
  • 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.2.14) Additional information

The main SID agreement will be 10 years in duration and will commence in CP7 with the inclusion of a break clause prior to the commencement of CP8. The options to enact the break clause for Control Period 8 (CP8) will be subject to performance and funding approval at the time.

two.3) Estimated date of publication of contract notice

5 November 2021


Section four. Procedure

four.1) Description

four.1.8) Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes


Section six. Complementary information

six.3) Additional information

It is envisaged that all appointed members of the SID will initially sign into a development phase agreement which is scheduled to commence in December 2022 / January 2023 and run up until April 2024. Following which, the main SID agreement will commence. The main SID agreement will be 10 years in duration and will commence in CP7 with the inclusion of a break clause prior to the commencement of CP8. The options to enact the break clause for Control Period 8 (CP8) will be subject to performance and funding approval at the time.

The value stated in Section II.1.5 is an estimated overall value of the (CP7) and CP8 renewals portfolio across the initial period assuming the break clause between CP7 and CP8 is not enacted. Whilst Network Rail retains some understanding of the value of the CP7 Renewals portfolio, due to the way Enhancement schemes are funded, the value of Enhancements is purely indicative and subject to change. For the purposes of valuing this forthcoming opportunity, Network Rail has assumed that the volume of work delivered within CP8 is aligned with CP7 current estimates. Recognising these constraints, it is estimated that the total value of the SID may be in the region of £4.7 billion - £9.6 billion.

Of which it is anticipated that Buildings and Civils constitutes 30% - 45%, Track 15% - 25%, Signalling & Telecoms 5% - 15%, Electrification and Plant 5% -10% whilst Minor Works is estimated to constitute 20%- 30% of the overall estimated value.

However, given the uncertainty over volumes and funding commitments, the overall value of this opportunity may vary and therefore may be higher or lower than this range.

To allow potential suppliers to understand the scope and requirements of this agreement, Network Rail intends to host a virtual market briefing event in which interested parties will be provided an overview of the procurement event and on the forthcoming procurement process. The event will take place on Monday 1st November 2021, from 09.00 to 11:00 (GMT). To register for the event or for details of the presentation, email your name, organisation and contact number to: — SouthernCP7Delivery@NetworkRail.co.uk no later than Monday, 25th October 2021. Please entitle your email “Southern Integrated Delivery (SID) – Market Briefing”. Formal Invites for the market briefing will be issued between Tuesday 26th and Friday 29th October 2021.