Contract award notice
Results of the procurement procedure
Section I: Contracting
authority
I.1) Name and addresses
Secretary of State for Transport (SoS) and Network Rail Infrastructure Limited (NR)
High Speed Two (HS2) Ltd, Two Snowhill, Snowhill Queensway,
Birmingham
B4 6GA
UK
E-mail: scc@hs2.org.uk
NUTS: UK
Internet address(es)
Main address: https://www.gov.uk/government/organisations/high-speed-two-limited
Address of the buyer profile: https://www.gov.uk/government/organisations/high-speed-two-limited
I.4) Type of the contracting authority
Ministry or any other national or federal authority, including their regional or local subdivisions
I.5) Main activity
Other: Transport
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Euston Station Over Site Development (OSD) — Master Development Partner (MDP)
II.1.2) Main CPV code
70000000
II.1.3) Type of contract
Services
II.1.4) Short description
HS2 Ltd, on behalf of the Contracting Authorities (SoS & NR) procured an MDP to lead the regeneration of the Euston Estate, a 22 hectare site consisting of SoS and NR owned land above and around Euston Station, to:
— develop and promote a Masterplan vision for the Euston Estate, in partnership with stakeholders,
— ensure that development is integrated and value is optimised without compromise to HS2/NR station operation/delivery,
— promote and secure planning permissions,
— have the option to fund and deliver the construction of buildings and associated amenities; and,
— establish the management arrangements for the completed Euston Estate (excluding railway property).
Applicants were advised that the NR station redevelopment was at an early planning phase and not yet funded.
Applicants were also advised that this opportunity did not involve the design or construction of any railway infrastructure or stations.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
4 000 000 000.00
GBP
II.2) Description
II.2.2) Additional CPV code(s)
45213350
45211350
71400000
45213150
70120000
71310000
71240000
70111000
71500000
71200000
45213300
71221000
71410000
45211360
45211340
71420000
45211000
45211341
45213100
45213320
45213000
70123000
71210000
70110000
45000000
45200000
45215214
70112000
71222000
71300000
45210000
71220000
II.2.3) Place of performance
NUTS code:
UK
Main site or place of performance:
Above and around Euston Station in London.
II.2.4) Description of the procurement
The Secretary of State for Transport (SoS) is delivering a new terminus station for High Speed 2 at Euston Station. Network Rail (NR) are owners of the adjacent “Conventional Station” and surrounding lands. SoS and NR have brought together their land holdings at Euston, creating an estate capable of accommodating significant commercial and residential development and have prepared a Masterplan to quantify the development potential of the Euston Estate. SoS and NR (together, the Contracting Authorities) have entered into a Collaboration Agreement to effectively pool their respective ownerships in the public interest and also to streamline decision making between the Contracting Authorities.
The Overarching Objectives of the Contracting Authorities are to: deliver a high quality mixed use development of the Euston Estate, create significant economic and social benefits for the local, regional and national economy and maximise financial returns from a development of the Euston Estate.
The Contracting Authorities have jointly procured an MDP to support the delivery of the Overarching Objectives. The Contracting Authorities have entered into a Contract with the MDP (the Development Agreement and ancillary agreements) to govern the terms of the development of the Euston Estate. The terms of the Contract are designed to secure the delivery of the Overarching Objectives and other key deliverables, broadly covering the following stages:
Stage 1 — Masterplanning and Stations Interface,
Stage 2 — Outline Planning Application,
Stage 3 — Plot Progress,
Stage 4 — Estate Management.
The Contract together with an agreed form of Business Plan embodies the agreed deliverables and will together be the key documents for judging the performance of the MDP, and contains performance criteria against which the MDP will be measured across the life of the scheme.
It is envisaged that the Contract will extend for a period of 25 years unless terminated earlier in specified circumstances, and it may be extended by agreement between the parties (up to a total duration of 40 years).
II.2.5) Award criteria
Quality criterion: Technical
/ Weighting: 70 %
Quality criterion: Commercial
/ Weighting: 30 %
Cost criterion: Profit margin percentage
/ Weighting: 30 %
II.2.11) Information about options
Options:
Yes
Description of options:
(i) Option to draw-down development plots and develop OSD with the draw-down process as governed by the Contract;
(ii) Option to develop above/around the NR Conventional Station, pending funding for station redevelopment; and
(iii) Option to extend contract for total duration of 40 years, in accordance with the provisions as set out in the Contract.
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 estimated Gross Development Value range is 2 000 000 GBP — 4 000 000 GBP depending on the options that may be exercised (See II.2.11) and other factors including and not limited to:
i. location / number of plots;
ii. market conditions;
iii. planning requirements; and/or
iv. funding for the Conventional Station redevelopment.
If none of the development options are exercised see VI.3 for further explanation.
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Competitive dialogue
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:
2017/S 072-137452
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: C1000_1894
Title: Euston Station Over Site Development (OSD) Master Development Partner (MDP)
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
15/03/2018
V.2.2) Information about tenders
Number of tenders received: 3
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Lendlease Europe Holdings Limited
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:
: 4 000 000 000.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.3) Additional information
1) The GDV range estimated in II.2.14 was based upon the options and other prevailing conditions as set out in that section. Should the development options not be realised the MDP will only be eligible for fees/costs under the terms of the Contract.
2) It was estimated that the cost of the services which the MDP will be required to provide in Contract during Stages 1 and 2 may be in the region of 20 000 000 GBP to 40 000 000 GBP and the Contracting Authorities contribution is governed by the Contract.
VI.4) Procedures for review
VI.4.1) Review body
High Court
Royal Courts of Justice, Strand
London
WC2A 2LL
UK
Telephone: +44 20794760000
VI.4.3) Review procedure
Precise information on deadline(s) for review procedures:
The Contracting Authorities incorporated a minimum of ten (10) calendar day’s standstill period in accordance with Regulation 87 of Public Contracts Regulations 2015 prior to entering into the Contract.
VI.5) Date of dispatch of this notice
28/03/2018