Concession award notice
Results of the procurement procedure
Section I: Contracting
authority/entity
I.1) Name and addresses
GOVIA THAMESLINK RAILWAY LIMITED
07934306
24 Monument Street
LONDON
EC3R8AJ
UK
Contact person: Carl Baker
E-mail: carl.baker@gtrailway.com
NUTS: UKI31
Internet address(es)
Main address: www.gtrailway.com
I.4) Type of the contracting authority
Other: Train Operating Company
I.5) Main activity
Other: Railway Services
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Concession Agreement for the provision of outdoor advertising and support and maintenance services
Reference number: PSC0020
II.1.2) Main CPV code
79341200
II.1.3) Type of contract
Services
II.1.4) Short description
Govia Thameslink Railway (GTR) is publishing this Concession Award notice to notify the market of the award of 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 award of the 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.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
17 000 000.00
GBP
II.2) Description
II.2.3) Place of performance
NUTS code:
UKH
UKI
UKJ
II.2.4) Description of the procurement
Govia Thameslink Railway (GTR) is publishing this Concession Award notice to notify the market of the award of 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 award of the 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.
II.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession
Start:
01/04/2024
End:
31/03/2028
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
Section IV: Procedure
IV.1) Description
IV.1.1) Form of procedure
Award procedure without prior publication of a concession notice in the cases listed below (please complete Annex D4)
Justification for selected award procedure:
The services can be provided only by a particular economic operator for the following reason: absence of competition for technical reasons
Explanation
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 has awarded the contract up to and inclusive of 31 March 2028.
IV.1.11) Main features of the award procedure:
Linked notice: voluntary ex ante transparency notice. Notice reference: 2023/S 000-035983 was published on Find a Tender Service on 6 December 2023.
GTR published the 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).
Section V: Award of contract
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
16/11/2023
V.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
JCDECAUX UK LIMITED
01679670
991 Great West Road
Brentford
TW8 9DN
UK
NUTS: UK
The contractor is an SME:
No
V.2.4) Information on value of the concession and main financing terms (excluding VAT)
Total value of the concession/lot:
17 000 000.00
GBP
Any other details relevant to the value of the concession according to Art. 8(3) of the directive:
The total value of the concession relates to the estimated turnover retained by the Concessionaire.
Section VI: Complementary information
VI.4) Procedures for review
VI.4.1) Review body
High Court
7 Rolls Buildings, Fetter Lane
London
EC4A 1NL
UK
Telephone: +44 2079477156
VI.4.2) Body responsible for mediation procedures
High Court
7 Rolls Buildings, Fetter Lane
London
EC4A 1NL
UK
Telephone: +44 2079477156
VI.5) Date of dispatch of this notice
20/02/2024