Southern Integrated Delivery (SID) - B&C and E&P

A Contract Award Notice
by NETWORK RAIL INFRASTRUCTURE LTD

Source
Find a Tender
Type
Contract (Works)
Duration
not specified
Value
£1B-£4B
Sector
CONSTRUCTION
Published
17 Mar 2023
Delivery
not specified
Deadline
n/a

Concepts

Location

South East England:

Geochart for 1 buyers and 2 suppliers

Description

Network Rail has carried out a procurement exercise to award the CP7 Southern Integrated Delivery (SID) agreement to deliver our Control Period 7 (CP7) and potentially CP8 renewals portfolio. The 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 scope includes 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. This notice covers the appointment of the Buildings & Civils (Lot 1) and Electrification & Plant (Lot 2) lots, where all appointed Business Partners within the SID have initially signed into a development phase agreement, scheduled from February 2023 to April 2024. The main SID agreement will be 10 years in duration (April 2024 - March 2034) and will commence in CP7 with the inclusion of a break clause prior to the commencement of CP8.

Lot Division

1 Buildings & Civils

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.

2 Electrification & Plant

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.

Award Detail

1 Volkerfitzpatrick (Hertfordshire)
  • Lot 1 Buildings & Civils
  • Reference: 007899-2023-1
  • Value: £4,300,000,000
2 Octavius Infrastructure (Reigate)
  • Lot 2 Electrification & Plant
  • Reference: 007899-2023-2
  • Value: £1,000,000,000

Renewal Options

There is an inclusion of a break clause prior to the commencement of CP8. The option to enact the break clause for Control Period 8 (CP8) will be subject to performance at the time.

CPV Codes

  • 45000000 - Construction work
  • 45234100 - Railway construction works

Indicators

  • Options are available.

Other Information

** PREVIEW NOTICE, please check Find a Tender for full details. ** The value stated in Section II.1.7 at £5,300,000,000 is the estimated overall value of the Enterprise Development Agreement (EDA) and Enterprise Agreement (EA) for these lots. This covers the EDA mobilisation period prior to CP7 commencement (February 2023 – April 2024) and CP7 – CP8 (April 2024 – March 2034), assuming that the break clause for the EA at 5 years is not enacted and the EA runs for the full 10 year period. This is further broken down in Section V.2.4 Lot 1 Buildings & Civils at £4,300,000,000 and Section V2.4 Lot 2 Electrification & Plant at £1,000,000,000. Whilst Network Rail retains some understanding of the value of the renewals portfolio, the estimated overall value and specific lot values provided within this Contract Award Notice are purely indicative and is subject to change. This is due to a variety of reasons; the Statement of Funds Available (SoFA) is subject to change with the Final Determination taking place in October 2023, there is currently a lack of visibility on the CP8 funding and volume of work, and there is uncertainty on any upcoming changes surrounding Network Rail’s transition into GBR. These, coupled with general current economic volatility affecting international markets, meant that Network Rail has had to make assumptions to provide an estimate on the contract values. For the purposes of assessing the values, Network Rail has assumed that 100% of Southern Region’s renewals portfolio for CP7, known at the time of publication of the Contract Notice, would be progressed (subject to any restrictions stipulated within the Contract Notice). In addition, as the CP8 funding and volume of work is unknown, the projected costs has been made based on the CP7 estimated values. Recognising these constraints and uncertainties, the actual total value and split across each lot of the contract may vary and therefore be higher or lower than the values shown on this Contract Award Notice.

Reference

Domains