Financing of new Rolling Stock for Southeastern and associated introduction costs

Concepts

• southeastern
• financial leasing
• department for transport, southeastern and ultimately
• financing of new rolling stock
• introduction costs
• cost reduction
• significant quantity of southeastern
• southeastern's customers
• new trains
• new fleet

Location

South East England:

Description

The overall objective of this procurement is cost reduction and cost avoidance, through securing the best medium and long-term value fleet solution for the benefit of taxpayers, the Department for Transport, Southeastern and ultimately, Southeastern's customers. We believe that this objective can be secured by procuring new trains to replace a significant quantity of Southeastern's ageing fleet and therefore avoiding the escalating maintenance, repair and leasing costs To meet this objective, the new fleet must be manufactured and introduced into full operational service by October 2027 The quantity of vehicles in the core order will be between 350 and 570, with an option for up to 70 additional vehicles (these quantities have been calculated using an assumed 20m vehicle length). The precise number in the core order will be determined once tenders for supply, financing and maintenance have been received and the business case for new trains is completed. The business case will inform and determine which fleet or fleets are to be replaced and therefore will determine the final quantity for the core order In addition, follow-on options may be sought, to allow the fleet to be increased over time, depending on recovery of demand post pandemic Bidders will be required to finance the acquisition of the units, spares and special tools, along with associated project and introduction costs, and enter into appropriate leasing arrangements Bidders should note that the rental profile should be level over the full asset life and hence may not include any balloon or stepped rentals

Total Quantity or Scope

SE Trains Limited (trading as Southeastern) is a UK train operating company serving stations in London, Kent and East Sussex. In order to support our strategy of cost reduction, as well as modernising and enhancing passenger experience, we have developed our rolling stock asset strategy and are now inviting expressions of interest for the supply and financing of new trains, associated equipment and associated maintenance support. Interested parties should register their interest in taking part, and to be eligible to receive further tender documentation during the process by responding on this survey link https://www.smartsurvey.co.uk/s/COZFZN/ Following the deadline for response to this notice, Southeastern will provide further communications to interested parties and will arrange a number of bidder engagement sessions before issuing an Invitation to Pre-Qualify (ITP) in 2023. The ITP stage of the procurement will focus on high level capability and previous experience financing rolling stock which will be evaluated to ensure only the most suitable bidders progress to the Invitation to Negotiate stage later in 2023 Tender documentation issued at ITP stage will be in a developed form but may be subject to amendment prior to the ITN being issued. Interested parties should note that Southeastern is undertaking parallel procurement activities for the manufacture and maintenance support of this rolling stock, as well as a further process for the leasing of existing Rolling Stock with a view to selecting one or a combination of options. Interested parties should also note that partaking in this procurement process may not result in any award and suppliers are taking part at their own cost and risk. The issue of the contract notice (or any other procurement document) does not have contractual effect or create any form of contract (implied or otherwise) between Southeastern and any other person Southeastern will not be liable, under any circumstances, for any bid costs, expenditure, work or effort incurred by a Bidder in proceeding with or participating in this procurement, including if the procurement process is terminated or amended at any stage prior to contract execution Southeastern reserves the right to amend, modify and/or add further stages to or terminate the process at any stage prior to contract execution

Renewal Options

The Lease will have an initial minimum term of between 6 and 10 years, with possible extension options (exercisable at the Operator's discretion) up to the full asset life (which shall be a minimum of 35 years). This term shall be confirmed through the procurement process

CPV Codes

• 66114000 - Financial leasing services

Indicators

• This is a one-off contract (no recurrence)
• Options are available.
• Renewals are available.
• Professional qualifications are sought.

Other Information

** PREVIEW NOTICE, please check Find a Tender for full details. **