Future opportunity

Southern Integrated Delivery (SID) – Signalling and Track

  • Network Rail Infrastructure Ltd

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

Notice reference: 2021/S 000-031851

Published 20 December 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

Matthew.Mccarty@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) – Signalling and Track

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, 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 of 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.

The establishment of the SID will be undertaken in two tranches, the first of which was for the procurement of the Buildings & Civils and Electrification & Plant Business Partners for which the Contract Notice was published on 5th November 2021 (publication reference: 2021/S 000-027900). This notice pertains to the second tranche of procurement and is for the appointment of a Signalling Business Partner and a Track Business 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

Signalling

Lot No

3

two.2.2) Additional CPV code(s)

  • 34632300 - Electrical installations for railways
  • 34943000 - Train-monitoring system
  • 45200000 - Works for complete or part construction and civil engineering work
  • 45234100 - Railway construction works
  • 45234115 - Railway signalling works
  • 45234140 - Level crossing construction works
  • 45316000 - Installation work of illumination and signalling systems
  • 45316200 - Installation of signalling equipment
  • 48140000 - Railway traffic control software package
  • 71000000 - Architectural, construction, engineering and inspection services
  • 71300000 - Engineering services
  • 71311230 - Railway engineering services
  • 71320000 - Engineering design 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 Signalling works on the Railway. These works will be undertaken within the Southern Region 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.

The Signalling Integrator Business Partner will be required to undertake, without technical bias:

• Early-stage development including all work types (renewals and refurbishment) typically GRIP 1 to 3

• Detailed design, construction and commissioning of all work types (GRIP 4 to 8) including targeted Interventions, Level Crossings and telecommunications associated with the signalling works, with the exception of major renewals as described below - which will be undertaken by Original Equipment Manufacturers (OEM) providers appointed within the Eco-system

• Manage, coordinate and oversee the delivery for all appointed Eco-System OEM providers - who will be remitted to undertake major Signalling renewals, typically Re-Signalling, Re-lock, Re-control and ETCS schemes (typically GRIP 4 to 8 works, however where considered the optimum delivery strategy, the OEM may be appointed during the development phase)

• Self-delivery of mid-size schemes/asset-life extension works.

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 at the time.

two.2) Description

two.2.1) Title

Track

Lot No

4

two.2.2) Additional CPV code(s)

  • 34943000 - Train-monitoring system
  • 45200000 - Works for complete or part construction and civil engineering work
  • 45234100 - Railway construction works
  • 45234113 - Demolition of tracks
  • 45234116 - Track construction works
  • 45234140 - Level crossing construction works
  • 45310000 - Electrical installation work
  • 71000000 - Architectural, construction, engineering and inspection services
  • 71300000 - Engineering services
  • 71311230 - Railway engineering services
  • 71320000 - Engineering design services
  • 71500000 - Construction-related services
  • 71631470 - Railway-track inspection 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 Track works on the Railway. These works will be undertaken within the Southern Region 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.

The scope will cover the site investigation, survey, design, planning and installation of track works, including the renewal, removal, refurbishment or new installation of plain line track, track drainage or switches and crossings by whatever means. This is including, but not limited to, the following associated track work items: Re-alignment, lifting and lowering of track, 3rd Rail, Remote condition monitoring, removal, replacement or new installation of lineside plant such as rail lubricators, fencing and rail crossings – road, access and pedestrian crossings, civils associated with these activities; cabinet bases, walkways, troughing routes, under track crossings, platform works.

This notice also includes the following standalone items, i.e. not in association with track works: Track drainage renewal, removal, refurbishment or new installation, track bed stabilisation – works to track formation and sub-structure, rail crossings – road, access and pedestrian crossings and associated minor signalling and telecoms work.

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 at the time.

two.3) Estimated date of publication of contract notice

31 January 2022


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 January 2023 and run up until April 2024. Following which, all Partners will sign into a multi-party SID Agreement based on an NR21 alliance form of contract. 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. 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 used. Whilst Network Rail has 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 these estimates it is anticipated that Buildings and Civils constitutes 30% - 45%, Track 15% - 25%, Signalling 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.

Applicants will have the option to bid for both Lot 3 – Signalling and Lot 4 – Track. However, Network Rail intends to restrict the number of Lots an applicant may be awarded under this Procurement Event (and the number of roles) to a maximum of one.

This principle will also apply to the appointment of all ongoing procurements activities pertaining to the appointment of Business Partners within the SID; the number of places an economic operator is eligible to be awarded across Buildings & Civils, Electrification & Plant, Track and Signalling will be restricted to one. This is because all Business partners under the SID will be party to the same contract and Network Rail does not consider that optimal operation of the SID will be achieved if an economic operator holds more than one of the key Partner roles.

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 Thursday 20th January 2022, from 10.00 to 12:00 (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 Thursday 13th January 2022. Please entitle your email "Southern Integrated Delivery (SID) - Market Briefing – Signalling & Track". Formal Invites for the market briefing will be issued between Friday 14th and Wednesday 19th January 2022.