Find a TenderAwarded
Published 11 May 2021, 09:40 BST

Official UK procurement notice

Financing of Rolling Stock

Official notice

Authority: LONDON NORTH EASTERN RAILWAY LIMITED (Public body)·Consortium: 2 public authorities

ServicesNegotiated procedure with prior call for competition
Published estimate£500,000,000exc. VAT
Submissions closed 7 Jun 2021awarded 8 Nov 2023

What is being bought

Published requirement description

LNER commenced a procurement process with potential manufacturers for the design, manufacture, testing and supply (and associated maintenance activities) of a fleet of ten (10) InterCity trains (the "Base Order Units"), owner owned spares, special tools, simulator hardware and technical information, mock-ups (together the "Leased Equipment") and depot works for the use on the East Coast franchise. There was also an option to procure up to an additional five (5) trains (the "Option Units").

The trains will provide LNER with additional capacity to accommodate future growth and have performance characteristics that enable the fleet to be timetabled effectively amongst modern InterCity trains. The trains shall be fully rated for operation on 25kV overhead line equipment and have self-power capability for operation on non-electrified sections of the network and over non-electrified diversionary routes, increasing the flexibility of LNER's fleet and the ability to provide uninterrupted services during engineering works.

CPV: Financial leasing services

The lotProcurement structure

single lot · value published
Lot #1The subject of the procurement was financing for the Base Order Units, Leased…AwardedRenewalPublished value£500,000,000

The subject of the procurement was financing for the Base Order Units, Leased Equipment, depot works and LNER's project costs by way of an Operating Lease Agreement (OLA) through a qualified provider of rolling stock operating leasing solutions. Further detail is set out in Section II.1.4.

LNER chose to run the procurement under the negotiated procedure with a prior call for competition under regulation 47 of the Utilities Contracts Regulations 2016.

The successful financier was chosen on the basis of the most economically advantageous bid based on the award criteria set out in the procurement documents.

Delivery: UK
Extensions: The OLA will have an initial term of 8 years and may be extended by LNER on multiple occasions provided that the aggregate duration of all of the extensions shall not exceed 8 years. Additional information regarding the initial term and any extension was provided in the procurement documents. · The OLA will have an initial term of 8 years and may be extended by LNER on multiple occasions provided that the aggregate duration of all of the extensions shall not exceed 8 years. Additional information regarding the initial term and any extension is provided in the procurement documents.Variant bids: not allowed

What it takes to win
i

How this buyer will score bids.

The evaluation criteria and weights exactly as published on the notice, grouped by family (price, quality, social value and so on).

Evaluation split and conditions of participation as published; the tender pack may add more
Conditions of participation2
  • Economic & financial standing

    Selection criteria as stated in the pre-qualification questionnaire. Interested parties should note that suppliers are required to provide a response against the following selection question as part of the pre-qualification questionnaire:

    The supplier must demonstrate that it either:

    (a) Has the capacity (supported by a letter signed by a senior officer) to finance the total value of the Base Order Units, Option Units, Leased Equipment, depot works and LNER's project costs on a fully underwritten basis (for purposes of this selection question this is estimated at £400,000,000); or

    (b) Represents a group of equity (or other forms of funds) financiers, who between them as a consortium are able to finance the total value of the Base Order, Option Units, Leased Equipment, depot works and LNER's project costs (for the purposes of this selection question this is estimated at £400,000,000).

    Together such financiers must have the ability to provide an equity (or equivalent) investment in an amount of not less than £40,000,000, confirmed by a letter signed by a senior officer. Letters of support from other financiers who, at the time of response to the pre-qualification questionnaire may make up the consortium, must also be provided.

    Please note that the above selection questions are set out in this contract notice for information only. Interested suppliers must ensure all questions in the pre-qualification questionnaire are completed in full, and in the format requested by the 07/06/…

  • Technical & professional ability

    Selection criteria as stated in the pre-qualification questionnaire. Interested parties should note that suppliers are required to provide a response against the following selection question as part of the pre-qualification questionnaire:

    The supplier must demonstrate that it or one of the parties it represents has a record of participating as an equity financier in any one of the following:

    (a) The operating lease financing of UK passenger rolling stock; or

    (b) The operating lease financing of other UK rolling stock; or

    (c) The operating lease financing of European passenger rolling stock; and

    where the value of the individual transaction (measured as the purchase price of the financed rolling stock under (a) – (b) has exceeded £150,000,000 or under (c) €150,000,000.

    Such record must consist of a current participation in such a transaction or having participated in such a transaction since 1 January 2016.

    For each example you wish to put forward, please include details of the relevant project, fleet size, cost of transaction and contract period.

    Please note that the above selection question is set out in this contract notice for information only. Interested suppliers must ensure all questions in the pre-qualification questionnaire are completed in full, and in the format requested by the 07/06/2021 at 16.00.

Procedure terms & legal framework

From the official record · publisher note attached
Procedure method
Negotiated procedure with prior call for competition
Legal basis
CELEX · 32014L0025 Utilities Contracts Regulations 2016 (Directive 2014/25/EU)
Procurement category
Services
Notice status
Awarded
Procurement threshold
Unspecified in notice
Regulatory regime
Standard
Commercial structure
Stand-alone contract (no framework)
Competition type
Competitive procedure
GPA / WTO covered
Yes (GPA)
Recurring procurement
No (one-off requirement)
First published
11 May 2021, 09:40 BST
Last source update
6 Dec 2023, 13:50 GMT
Authority reference
DN1567
FTS notice number
2023/S 000-035939
Classification (CPV)
Financial leasing services
Delivery area
UK
Official registry OCID
ocds-h6vhtk-02af4f Find a Tender
Contract terms
Electronic trading
e-invoicing allowed · electronic ordering · electronic payment
Review and risk notes
Review procedure

The UCR 2016 provide aggrieved parties who have been harmed or are at risk of harm a breach of the Regulations to take action in the High Court (England, Wales and Northern Ireland). The UCR 2016 set out the requirements on information to be provided prior to award of the contract and the procedures to be followed for bringing proceedings for breaches or alleged breaches of the UCR 2016.

Publisher note: Further to section II.1.5 and II.2.6, the estimated maximum value of the OLA is between £200,000,000 and £500,000,000 based on LNER's assessment at the time of this contract notice and on the basis of the option to extend is exercised for the maximum 8 year period (see further detail in section II.2.7).

How it was run

Official notice
Run through: ProContract (Due North) · Who buys & how to bid on ProContract
Supplier login requiredLanguage: EN
Access & registration note: Free · short registration with manual review; public opportunity list
Submission deadline
7 Jun 2021, 16:00 BST
Submission channel
{"electronicSubmission"}
Accepted languages
en
Detailed submission instructions & authority contactsFrom official release

Timeline

7 Jun 2021 → 6 Dec 2023 · 2 dates
  1. Submission deadline
    7 Jun 2021, 16:00 BST
  2. Notice published
    6 Dec 2023, 13:50 GMT

Notice history

2 events · 2 releases on Find a Tender · since 6 Dec 2023
  1. Status changed to complete
    6 Dec 2023, 13:50 GMT
  2. Buyer details updated
    6 Dec 2023, 13:50 GMT

Commercial outcome & contract awards

Published awards, contracts and bid statistics, not a forecast
Awards 1
Contracts signed 1latest 8 Nov 2023

1 further award records carry no date or value.

Contracts

  • Financing of Rolling Stock · supplier not published

    Signed
    8 Nov 2023
    Value
    —
    Status
    active

Contracting authority & participating public bodies

2 public bodies on the notice

London North Eastern Railway Limited

Contracting authorityPublic bodyRailway services GB-COH: 045659712 West Offices, Station Road, York, UK, YO1 6GAContact name, email

Consortium members and other public bodies

Dispute resolution & review bodies

  • High Court of England and WalesReview body London

Official documents & specifications

Official links; attachments are not copied

No document links were published on the notice.