Scope
Description
This procurement is for the provision of a Conductor Rail Equipment (CRE) monitoring service for the MerseyRail Class 777 fleet.
The service will cover the design, supply, installation, commissioning, and ongoing operation and maintenance of thermal and visual imaging equipment on two Class 777 units, as well as secure provision of processed data and insights.
The CRE monitoring service will provide the following core functionalities:
• Thermal Imaging: Identification of hotspots indicating loose connections, high resistance points, and damaged insulators.
• Visual Monitoring: Forward-facing video to provide context and enable remote inspection of the rail corridor and equipment.
• Automated Alerts: Near real-time detection of potential CRE faults to support proactive and predictive maintenance interventions.
This service will enable Network Rail to identify emerging defects earlier, minimise CRE-related failures, reduce service disruptions and manual trackside inspections, and contribute to a safer and more reliable network.
Contract 1
Supplier
Contract value
- £298,508 excluding VAT
- £358,210 including VAT
Above the relevant threshold
Earliest date the contract will be signed
15 December 2025
Contract dates (estimated)
- 22 December 2025 to 14 December 2026
- 11 months, 24 days
Main procurement category
Services
CPV classifications
- 72300000 - Data services
Other information
Conflicts assessment prepared/revised
Yes
Procedure
Procedure type
Direct award
Direct award justification
Single supplier - technical reasons
This award is compliant with the Procurement Act 2023 under schedule 5 paragraph 5; competition is absent for technical reasons and NR's C&P Policy. The Rationale is as follows:
• the aim of the procurement is the creation or acquisition of a unique work of art or artistic performance.
• competition is absent for technical reasons.
• the protection of exclusive rights, including intellectual property rights, but only in the case of paragraphs.
MerseyRail, as the owner and lessor of the Class 777 fleet, is uniquely positioned to provide this OLE monitoring service. The rationale for a direct award is based on the following:
• Existing Asset Knowledge and Access: MerseyRail possesses in-depth knowledge of the Class 777 fleet and has established access to the trains for the necessary design and installation of the monitoring equipment. This eliminates the need for a separate procurement process to identify and contract with a third party for train access and modification.
• Service Integration: Awarding the entire service to MerseyRail ensures seamless integration of the technology selection, installation, maintenance, and data provision aspects. This streamlined approach minimizes potential interface issues and simplifies contract management.
• Efficiency and Time Savings: A direct award to MerseyRail leverages their existing relationship and knowledge, significantly reducing the time and resources required for a full competitive tender process. This allows for a faster implementation of the vital OLE monitoring capability.
• Upgrade of Existing Equipment: MerseyRail already has a previous generation of OLE monitoring equipment fitted to these trains, which can be upgraded to provide the latest technology.
By awarding this contract directly to MerseyRail, Network Rail can efficiently implement a well-established and effective OLE monitoring solution, leveraging the asset owner's unique position and existing service delivery capabilities.
Supplier
MERSEYRAIL ELECTRICS 2002 LIMITED
- Companies House: 04356933
Rail House, Lord Nelson Street, Liverpool, Merseyside
Liverpool
L1 1JF
United Kingdom
Email: tdrost@merseyrail.org
Region: UKD72 - Liverpool
Small or medium-sized enterprise (SME): No
Voluntary, community or social enterprise (VCSE): No
Contract 1
Contracting authority
NETWORK RAIL INFRASTRUCTURE LIMITED
- Public Procurement Organisation Number: PNZN-9524-VCQJ
Waterloo General Office
London
SE1 8SW
United Kingdom
Email: valentine.onwuchekwa@networkrail.co.uk
Website: https://www.networkrail.co.uk/
Region: UKI45 - Lambeth
Organisation type: Public authority - central government