Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
Transport for London (TfL), contracting through its subsidiary Transport Trading Limited (TTL)
Commercial Technology and Data, 14 Pier Walk, 6th Floor
London
SE10 0ES
UK
Contact person: Antony Fahy (Lead Commercial Manager)
Telephone: +44 7545201054
E-mail: AntonyFahy@tfl.gov.uk
NUTS: UKI
Internet address(es)
Main address: https://tfl.gov.uk/
I.4) Type of the contracting authority
Body governed by public law
I.5) Main activity
General public services
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Provision and Commercial Exploitation of a Real Time Optimiser System
Reference number: TFL-ICT11814
II.1.2) Main CPV code
72000000
II.1.3) Type of contract
Services
II.1.4) Short description
The Real Time Optimiser (RTO) System will replace TfL’s existing Urban Traffic Control (UTC) system and the Split Cycle Optimisation Technique (SCOOT) traffic signal optimiser. It will protect future road traffic operations in London, removing dependencies on end-of-life software and systems and providing enhanced functionality that is critical to reduce delays and improve journey time reliability. It will also act as an enabler for future technologies, providing the opportunity to work with an enhanced selection of data sources and predictive capability.
The initial development and implementation will deliver enhanced capability for London. The product will be developed further through a jointly agreed and managed product roadmap for the RTO System, ensuring that it evolves throughout the term of the contract to continue to meet the needs of London and other cities that may adopt it. TfL and the service provider will work together to commercially exploit the RTO System globally.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
105 000 000.00
GBP
II.2) Description
II.2.2) Additional CPV code(s)
63712700
63712710
II.2.3) Place of performance
NUTS code:
UKI
Main site or place of performance:
Development of the RTO System will be undertaken in London and in Dorset. Once implemented, the initial system will be run by TfL in London. Future joint deployments may be made around the world.
II.2.4) Description of the procurement
The procurement process has been conducted using the negotiated procedure without prior publication due to the absence of competition for technical reasons in accordance with Regulation 32(2)(b)(ii) – see Section IV.1.1)
The RTO Contract will put TfL in a position where the capability to operate and strategically control London’s road network is safeguarded both now and into the foreseeable future. This will be accomplished through delivery and upkeep of the following: a tailor-made product for London’s road management requirements delivered into operation within London without any disruption, a regime of support centred on operational resilience, and a development roadmap rooted in operational delivery requirements.
The transition period of delivery will encompass development of the RTO System to meet TfL’s requirements, ensuring interoperability with any legacy systems, and full system and user testing. This final step will be followed by a phased approach to deployment, such that traffic control signals in London have their controlling influence switched from the old to the new systems whilst suffering no degradation in performance due to the cutover.
The new RTO System will require an extensive support provision, to be delivered primarily by the service provider but with coordinating activity from TfL’s Technology and Data team. This support will be necessary to cover times extended beyond normal office hours, reflecting the 24/7 nature of roads management within London.
The service provider will co-own the development roadmap for the RTO System with TfL, enabling commercial, strategic and operational strands to be woven together to successfully direct the lifecycle of the product. The initial roadmap will include developments covering optimisation technique improvements (including a longer term development building upon the current capabilities of SCOOT), making use of technology advances to evolve the RTO System to draw in the area of predictive modelling and making tangible improvements to operational processes – thus enabling more focussed attention being given to management of the road space.
Further development of the roadmap is likely to be influenced by evolving requirements brought by the proliferation of connected vehicles and the anticipated arrival of autonomous ones. In addition it is anticipated that the RTO System will be further developed to optimise the use of a widening range of data sources, enable even more efficient use of road network capacity and support the policy goals of TfL and London (embedded within the Mayor’s Transport Strategy) including improved air quality and safety related applications.
One further aspect of the RTO Contract will be the jointly managed exploitation business, whereby TfL and the service provider will work together to sell and deploy the RTO System around the world, sharing the financial returns.
II.2.5) Award criteria
Quality criterion: System design
/ Weighting: 30
Quality criterion: Transition
/ Weighting: 25
Quality criterion: Service management
/ Weighting: 20
Quality criterion: Product roadmap and commercial exploitation
/ Weighting: 25
Price
/ Weighting:
PQP
II.2.11) Information about options
Options:
Yes
Description of options:
The RTO Contract will initially run until 4.3.2028. However, the intention is for the contract to be co-terminus with the life and exploitation of the RTO System. This is estimated at circa 30 years based on TfL's use of its current UTC system and the SCOOT technology to date. On this basis, there are options within the contract to extend the initial term by one or more extension periods of up to four (4) years each.
There are no further formal options within the contract, however it should be noted that the operation of the Product Roadmap allows for further development of the RTO System to be undertaken.
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
The successful provider has offered the ‘Most Economically Advantageous Tender (MEAT)’, taking both the quality of the solution and the price into account. The price per quality point (PQP) evaluation methodology has been used whereby each bidder’s total price (following calculation of the Net Present Value) has been divided by their total quality score to give a PQP, with the lowest PQP winning.
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Award of a contract without prior publication of a call for competition
Justification for selected award procedure:
The works, supplies or services can be provided only by a particular economic operator for the following reason: absence of competition for technical reasons
Explanation
The Public Contracts Regulations 2015 allow for authorities to use the negotiated procedure without prior publication where the services in question can be supplied only by a particular economic operator where competition is absent for technical reasons provided 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 procurement (Regulation 32(2)(b)(ii)).
Prior to commencing the procurement process for a Real Time Optimiser (RTO) System, TfL undertook a market sounding exercise to test its assumptions that SCOOT is currently the only product in the market which can meet its requirements due to complexities around inter-operability, programme, functionality and the very significant costs associated with integrating an alternative product. This activity was supported by PIN Ref: 259408-2016-EN.
The PIN sought expressions of interest from providers of real time optimisation software services to establish whether a viable alternative to SCOOT existed in the market. TfL made available a detailed briefing paper to all potential providers that expressed an interest and invited potential providers to engage in one-to-one discussions.
Having undertaken this thorough market engagement exercise, it was clearly demonstrated to TfL that, as anticipated, there are no viable alternatives to SCOOT and, as such, the wider market would not be able to deliver TfL’s requirements within the identified constraints.
On this basis, TfL made the decision to engage directly with the SCOOT owners, utilising the OJEU negotiated procedure without prior publication, without reverting more generally to the wider market.
A second PIN (PIN Ref: 321524-2016-EN) was published in the interests of transparency to notify the wider market that TfL would not be publishing a contract notice in respect of the procurement for the RTO System, but would instead engage directly with the owners of SCOOT in order to secure a commercial partner for the development, implementation and commercial exploitation of the system.
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
No
IV.2) Administrative information
IV.2.1) Previous publication concerning this procedure
Notice number in the OJ S:
2016/S 179-321524
IV.2.9) Information about termination of call for competition in the form of a prior information notice
The contracting authority will not award any further contracts based on the above prior information notice
Section V: Award of contract
Contract No: ICT11814
Title: Agreement for the Provision and Commercial Exploitation of a Real Time Optimiser System
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
27/06/2018
V.2.2) Information about tenders
Number of tenders received: 2
Number of tenders received from SMEs: 0
Number of tenders received from tenderers from EU Member States: 0
Number of tenders received from tenderers from non-EU Member States: 0
Number of tenders received by electronic means: 2
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Siemens Mobility Limited
16033
Faraday House, Sir William Siemens Square, Frimley
Camberley
GU16 8QD
UK
Telephone: +44 1202782000
E-mail: e-tendering.mobility.gb@siemens.com
Fax: +44 1202782435
NUTS: UK
Internet address(es)
URL: http://www.siemens.co.uk/en/
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 105 000 000.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.3) Additional information
The total value of the contract is identified as 105 000 000 GBP.
This value is TfL's best estimate of the total overall contract value and is comprised of:
— 19 000 000 GBP initial contract value,
— 20 000 000 GBP for potential extension options (up to circa 30 years — see Section II.2.11), and
— 66 000 000 GBP for potential future Roadmap Projects (see Section II.2.4).
Note that this is an estimate only and it is possible that the final contract value will exceed this figure.
In addition, please note that this figure is representative of the financial contributions to be made by TfL for the development of the RTO System only. Due to difficulties in estimating values, it does not include:
— any non-financial contributions to be provided by TfL (for example, permission to use the TfL brand, use of intellectual property within the current TfL UTC system and provision of expert advice in the field of road network management),
— any financial or non-financial contributions to be provided by the service provider, or
— any reference to financial returns that may be achieved by either TfL or the service provider from exploitation of the RTO System.
VI.4) Procedures for review
VI.4.1) Review body
Transport for London (TfL)
Commercial Technology and Data, 6th Floor, 14 Pier Walk, North Greenwich
London
SE10 0ES
UK
VI.5) Date of dispatch of this notice
26/07/2018