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

Concepts

• advertising management
• advertising assets
• outdoor advertising
• outdoor
• advertising
• maintenance
• concessionaire
• jc decaux limited
• gtr
• stations

Location

LONDON

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.

Award Detail

CPV Codes

• 79341200 - Advertising management services

Indicators

Legal Justification

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.

Other Information

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