Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
Highways England
The Cube, 199 Wharfside Street
Birmingham
B1 1RN
UK
Telephone: +44 0000000
E-mail: smpprocurement@highwaysengland.co.uk
NUTS: UK
Internet address(es)
Main address: https://www.gov.uk/government/organisations/highways-england
Address of the buyer profile: https://highways.bravosolution.co.uk/web/login.shtml
I.4) Type of the contracting authority
National or federal agency/office
I.5) Main activity
Other: Highways construction schemes and upgrade of roadside technology and associated road assets
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Smart Motorways Alliance and Associated Works
II.1.2) Main CPV code
45000000
II.1.3) Type of contract
Works
II.1.4) Short description
Highways England has appointed six partners to create the Smart Motorways Alliance (‘SMA’) over a 10.5 year period, including a mobilisation and a further period to complete outstanding works.
One partner shall provide production management services (Lot 1), two partners shall be digitally enabled designers (Lot 2) and three partners shall undertake on-site assembly and construction role (Lot 3). The alliance will develop, design and build multiple road schemes under a single alliance contract. Partners will operate from a centralised production hub to co-ordinate delivery.
The alliance will increase lane capacity on all parts of the strategic road network through embedding technology and converting hard shoulders to all-lane running. Where required, the alliance will also deliver associated works to co-ordinate wider HE programme of works. The alliance may also support HE deliver the wider autonomous and connected vehicles road implementation strategy.
II.1.6) Information about lots
This contract is divided into lots:
Yes
II.1.7) Total value of the procurement
Value excluding VAT:
4 500 000 000.00
GBP
II.2) Description
Lot No: 1
II.2.1) Title
Production Management Partner
II.2.2) Additional CPV code(s)
71500000
71520000
71521000
71530000
71541000
79418000
II.2.3) Place of performance
NUTS code:
UK
Main site or place of performance:
ENGLAND — National.
II.2.4) Description of the procurement
Highways England has appointed a partner to be accountable for the programme-wide management activities within the production hub function over the term of the Alliance Agreement (10.5 years) and thereafter to oversee completion of works called off under lots 2 and 3. Such works expected to complete within 2 to 3 years of expiry of the term of the Alliance Agreement.
The production management partner will act as a catalyst for integration and collaboration between all seven alliance members (six partners and Highways England) within the production hub while providing capability in the service areas specifically related to delivery control and coordination and investing in the capability and competence development of Highways England to enable a programmatic approach that supports realisation of the intended benefits of an Alliance Model. The outcomes of the production hub function include the following, as a minimum:
1) business integration — managing and integrating resources from multiple companies to create and sustain effective and efficient programme delivery;
2) delivering services within the production hub in a leadership or supporting role as required;
3) Programme Management Office to enable delivery plan to be successfully delivered safely, to time, cost and quality and with robust change control;
4) supply chain management strategy — facilitate delivery of collaborative procurement hub, category management and wider supply chain performance;
5) technology and information strategy — facilitate and deliver technology architecture strategy to enable efficiency single source of the truth;
6) logistical management and scheduling — facilitate delivery of strategic co-ordination of plant material and resources across inventory storage and manufacturing assembly to smooth resource levels and effective sequencing;
7) people strategy — support alliance board and develop recruitment, skills and retention strategy to drive high performing culture;
8) continuous improvement, innovation and best practice identified at the scheme level and shared across the programme to support consistently high performing and continuously improving teams in both design areas and in all three construction areas;
9) commercial management — facilitate delivery of effective cost, commercial and financial management function to the alliance;
10) communications — lead effective communications strategy and business reporting management;
11) governance and risk management — provide effective risk controls to facilitate operational and strategic delivery;
12) quality management and assurance — provide an effective quality management system and controls to maximise operational efficiency;
13) business change and innovation — provide catalyst for business opportunities and deliver effective project management to successfully implement change.
The specific resources and structure will be reviewed annually to reflect needs of forward design and build works programme.
II.2.5) Award criteria
Quality criterion: Quality
/ Weighting: 70 %
Quality criterion: Price
/ Weighting: 30 %
Price
/ Weighting:
30 %
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
II.2.14) Additional information
Lot value is for guidance only. The value will be subject to the programme scale and agreed resources profile across the alliance partners, which will vary depending upon ability for HE, design and construction partner's ability to self-deliver. A package order will be issued to confirm resource need, with resources embedded in a centralised production hub.
Lot No: 2
II.2.1) Title
Digitally Enabled Design Partner
II.2.2) Additional CPV code(s)
71000000
71250000
71300000
71311210
71320000
71322500
71510000
II.2.3) Place of performance
NUTS code:
UK
Main site or place of performance:
ENGLAND — National.
II.2.4) Description of the procurement
The digitally-enabled design partners will provide outline and detailed civil engineering design for smart motorway schemes. They will be accountable for delivery of the project control framework stages 1-7, including:
• principal designer for allocated schemes,
• design knowledge management,
• surveys (supported by supply chain and on-site assembly partner),
• environmental assessment and design,
• statutory and consent management,
• maximising use of digital design including building information modelling (BIM),
• providing designs solutions to meet scheme needs,
• promoting industry practice for road design.
As an alliance partner, the design partners will promote and lead the standardisation and use of digital solutions to reduce the need for bespoke design and maximise efficiency. They will develop and apply a consistent approach to design whereby standardised SMP designs are developed for use across all on-site assembly areas to drive efficiencies across the value chain.
The design partners will promote and manage the utilisation of the HE promoted ‘Rapid Engineering Model’ system to better inform designs, while standardising the methods and running digital rehearsals implementing a cyclical dynamic, where processes and capabilities are tested to deliver right first time, optimised on site assembly. The supply chain is critical to developing the flexibility, efficiency and speed to deliver the right product efficiently.
Design partners will provide resource and expertise to deliver centralised production hub activity to maximise alliance objectives and delivery of efficient programme. As part of the contract award, the two alliance design partners will provide personnel to sit within the production hub and shall appoint representatives to the Alliance Board with a mandate to deliver all SMP schemes.
The design partners' are assigned to one of two UK regions (North and South).
The alliance contract includes a work allocation procedure.
II.2.5) Award criteria
Quality criterion: Quality
/ Weighting: 70 %
Quality criterion: Price
/ Weighting: 30 %
Price
/ Weighting:
30 %
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
II.2.14) Additional information
Lot value represents the optimistic maximum forecast if the complete Smart Motorways Programme is fully funded over the 10-year term.
Lot No: 3
II.2.1) Title
On-site Assembly Partner
II.2.2) Additional CPV code(s)
45000000
45100000
45233000
45233100
45233130
71000000
71250000
71300000
71311210
71320000
71322500
71510000
II.2.3) Place of performance
NUTS code:
UK
Main site or place of performance:
ENGLAND — National.
II.2.4) Description of the procurement
The on-site assembly partner is responsible for constructing highways infrastructure, including the provision of traffic management and testing and commissioning of any infrastructure as part of handover to highway operational teams. Using in-house and supply chain resource to deliver schemes, interfacing with other partners to support efficient and safe design with predictable cost and schedule outcomes. They will have specific responsibility for delivery for the following specific activities:
• principal contractor for allocated schemes,
• site mobilisation and site logistics,
• site safety and temporary works,
• Integration and co-ordination of roadside technology to connect to Highways England Traffic Management System,
• site surveys,
• environmental assessment and design,
• asbestos surveys,
• management and delivery of construction activities,
• site performance control,
• site level engineering,
• installation and technology commissioning,
• commission and handover management,
• customer service and external stakeholder management.
On-site assembly partners will provide resource and expertise to deliver centralised production hub activity to maximise alliance objectives and delivery of efficient programme. It will specifically lead and promote usage of off-site construction activity. They will work with alliance partners to standardise construction materials, methods and design to maximise productivity and innovation.
On-site assembly partner's have been assigned to one of three UK regions (North, Midland and South).
The alliance contract includes a work allocation procedure.
II.2.5) Award criteria
Quality criterion: Quality
/ Weighting: 70 %
Quality criterion: Price
/ Weighting: 30 %
Price
/ Weighting:
30 %
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
II.2.14) Additional information
Lot value represents the optimistic maximum forecast if the complete Smart Motorways Programme is fully funded over the 10 year term.
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Competitive procedure with negotiation
IV.1.3) Information about a framework agreement or a dynamic purchasing system
The procurement involves the establishment of a framework agreement
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
IV.2) Administrative information
IV.2.1) Previous publication concerning this procedure
Notice number in the OJ S:
2018/S 234-533871
Section V: Award of contract
Lot No: 1
Title: Production Hub Partner
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
12/05/2020
V.2.2) Information about tenders
Number of tenders received: 4
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Fluor Ltd
01274885
Farnborough
UK
NUTS: UK
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 225 000 000.00
GBP
V.2.5) Information about subcontracting
Section V: Award of contract
Lot No: 2
Title: Digitally Enabled Design Partner
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
12/05/2020
V.2.2) Information about tenders
Number of tenders received: 4
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Jacobs UK Ltd
02594504
Wokingham
UK
NUTS: UK
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 675 000 000.00
GBP
V.2.5) Information about subcontracting
Section V: Award of contract
Lot No: 2
Title: Digitally Enabled Design Partner
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
12/05/2020
V.2.2) Information about tenders
Number of tenders received: 4
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
WSP UK Ltd
01383511
London
UK
NUTS: UK
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 675 000 000.00
GBP
V.2.5) Information about subcontracting
Section V: Award of contract
Lot No: 3
Title: On-site Assembly Partner
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
12/05/2020
V.2.2) Information about tenders
Number of tenders received: 6
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Balfour Beatty Civil Engineering Ltd
04482405
London
UK
NUTS: UK
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 360 000 000.00
GBP
V.2.5) Information about subcontracting
Section V: Award of contract
Lot No: 3
Title: On-site Assembly Partner
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
12/05/2020
V.2.2) Information about tenders
Number of tenders received: 6
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Costain Limited
00610201
Maidenhead
UK
NUTS: UK
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 360 000 000.00
GBP
V.2.5) Information about subcontracting
Section V: Award of contract
Lot No: 3
Title: On-site Assembly Partner
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
12/05/2020
V.2.2) Information about tenders
Number of tenders received: 6
The contract has been awarded to a group of economic operators:
Yes
V.2.3) Name and address of the contractor
Morgan Sindall Construction and Infrastructure Ltd
04273754
London
UK
NUTS: UK
The contractor is an SME:
No
V.2.3) Name and address of the contractor
BAM Nuttall Ltd
00305189
Camberley
UK
NUTS: UK
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 360 000 000.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.4) Procedures for review
VI.4.1) Review body
See details at VI.4.3
See details at VI.4.3
UK
VI.5) Date of dispatch of this notice
17/08/2020