Award

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

  • GOVIA THAMESLINK RAILWAY LIMITED

F15: Voluntary ex ante transparency notice

Notice identifier: 2023/S 000-035983

Procurement identifier (OCID): ocds-h6vhtk-04222a

Published 6 December 2023, 3:42pm



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

Region code

UKI31 - Camden and City of London

Companies House

07934306

Internet address(es)

Main address

www.gtrailway.com

one.6) Main 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 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).

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 current contract requires the Concessionaire to provide significant investment in the asset estate, and the award of a further 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.

GTR will not enter into the Contract before the end of a period of at least 15 days beginning with the day after the date of publication of this notice.

two.1.6) Information about lots

This contract 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 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).

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 current contract requires the Concessionaire to provide significant investment in the asset estate, and the award of a further 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.

GTR will not enter into the Contract before the end of a period of at least 15 days beginning with the day after the date of publication of this notice.

two.2.11) Information about options

Options: No

two.2.14) Additional information

The contract will be awarded up to and inclusive of 31 March 2028.


Section four. Procedure

four.1) Description

four.1.1) Type of procedure

Negotiated without a prior call for competition

  • The works, supplies or 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 intends to award the contract up to and inclusive of 31 March 2028.

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

The procurement is covered by the Government Procurement Agreement: No


Section five. Award of contract/concession

Contract No

PSC0020

Title

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

A contract/lot is awarded: Yes

five.2) Award of contract/concession

five.2.1) Date of conclusion of the contract

16 November 2023

five.2.2) Information about tenders

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

five.2.3) Name and address of the contractor/concessionaire

JCDECAUX UK LIMITED

991 Great West Road

Brentford

TW8 9DN

Country

United Kingdom

NUTS code
  • UK - United Kingdom
Companies House

01679670

The contractor/concessionaire is an SME

No

five.2.4) Information on value of contract/lot/concession (excluding VAT)

Initial estimated total value of the contract/lot/concession: £17,000,000

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


Section six. Complementary information

six.3) Additional information

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

The date in section V.2.1) relates to the date of the contract / concession award decision.

For avoidance of doubt, the Contract has not been concluded and GTR will not enter into the Contract before the end of a period of at least 15 days beginning with the day after the date of publication of this notice.

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

Country

United Kingdom

six.4.3) Review procedure

Precise information on deadline(s) for review procedures

GTR will not enter into the Contract before the end of a period of at least 15 days beginning with the day after the date of publication of this notice