PRO1680 -Contract for the Design, Development, Supply and Installation of Passenger Stop Signs and the provision of related Services

Contracts

• PRO1680 -Contract for the Design, Development, Supply and Installation of Passenger Stop Signs and the provision of related Services · Vix Technology UK Ltd

  Signed

  1 Sept 2009

  Value

  £7,464,639

  Status

  active

  • Change As explained in section II.2.4 above, in 2009 London Bus Services Limited (LBSL), a subsidiary of Transport for London (TfL), awarded a 12 year contract to Vix Technology Ltd for the supply, install and maintenance of Countdown 2 (CD2) signs (the Contract). Vix Technology Ltd are responsible for maintaining circa 50% of the Countdown signs on TfL's estate, which comprises approximately 2,700 LED technology screens affixed to the roof of bus shelters across TfL's network. In 2021, the parties agreed to extend the Contract for 18 months, such that it would terminate in March 2023. LBSL currently intends to competitively procure the next generation of signs and services, Countdown 3 (CD3), under the Utilities Regulations 2016 (UCR). The Countdown 3 procurement envisages that Lot 1 and Lot 2 will each account for approximately fifty percent (50%) of the total volume of Signs on which LBSL requires the Passenger Information Sign Services to be installed and maintained (which TfL considers will equate to approximately 1350 Signs for each of Lot 1 and Lot 2). Concurrently, TfL is progressing the iBus2 project: a separate competitive procurement exercise which is concerned with the generation of data which underpins the information displayed through the Countdown signs (among other matters). In 2020, the Countdown 3 project commenced, with the aim of re-procuring the supply, support, and maintenance services of the Countdown signs. Due to the Covid-19 pandemic, the Countdown 3 project was put on hold, which meant that no replacement contracts were awarded. The project restarted in 2021 and was due to award a contract later this year. However, the Countdown 3 project is proposing to change the scope of the procurement following further market engagement and discovery of emerging industry standard processes and data transfer rationalisation strategies. The revised approach is also exploring the most appropriate interface between iBus2 and Countdown 3 for real time passenger information. In the absence of this process, the value of the Countdown 3 project to LBSL and TfL will be substantially eroded due to increased operational expenditure over a diminished timeframe before a further overhaul of the Countdown asset base is required. To complete this work, additional time will be required to review the Market Sounding Questionnaire (MSQ) responses from the suppliers who expressed interest to the PIN (FTS 007626-2022), confirm the outputs from the iBus2 procurement and incorporate these, and any changes, into the Countdown 3 requirements. Following conclusion of the Countdown 3 procurement, LBSL will then need to facilitate the appropriate transition from the existing Countdown 2 signs to the new signs which will be installed and maintained by the Countdown 3 suppliers. To enable the above actions to take place in an orderly manner and without undue service disruption, on 16 September 2022, LBSL and Vix Technology Limited entered into an agreement to extend the Contract term for an initial 12 months to February 2024 with the option to extend for a further 6 months ("Extension") so that Vix Technology Limited can continue to provide the Countdown 2 services, permit the Countdown 3 procurement process to be properly carried out and allow mobilisation and transition to take place before the new suppliers take up the support and maintenance of the Countdown 3 signs. This modification notice relates to that extension. LBSL considers that the Extension benefit from the exemption for "additional services" that is laid down in Regulation 88 (1)(b) of the UCR. The provision of the additional Countdown 2 services over a maximum duration of 18 months has become necessary for LBSL to ensure continuation of the Countdown services including the continued supply, installation and maintenance of Countdown 2 signs and gives the Countdown 3 project time to impact potential changes in scope. Running a competitive tender for a short extension, ahead of starting the Countdown 3 procurement, would involve significant inconvenience and substantial duplication of costs for LBSL. It may also delay completion of the iBus2 tender process and the start of the Countdown 3 procurement. For more details of the reasons, please see section VII.2.2 below., Need for additional works, services or supplies by the original contractor/concessionaire: Given the age of the Countdown 2 sign estate and its planned replacement in the near-term, it is not viable for TfL or LBSL to bring in a different contractor on a short term basis in a way that safeguards the continued operation of LBSL's countdown services, pending delivery of the Countdown 3 procurement. To do so would likely result in disruption to the service, thereby creating significant inconvenience to LBSL and broader users of the bus network. Furthermore, the existing Countdown 2 signs cannot be taken on by another supplier as it would not be technically possible for another supplier to operate the existing Countdown 2 signs. A change in supplier would give rise to a need to replace the Countdown 2 assets. Indeed, replacement of the Countdown 2 assets is contemplated in the Countdown 3 procurement, such that an interim replacement would duplicate costs in light of Countdown 3. The cost of bringing in a different contractor on a short term basis would therefore be prohibitive.

Dispute resolution & review bodies

• High Court (England, Wales and Northern Ireland)Review body London