ScotRail Franchise Replacement
Transport Scotland is implementing its procurement strategy for the replacement of the existing ScotRail Passenger Franchise.
United Kingdom-Glasgow: Railway transport services
Section I: Contracting authority
Transport Scotland on behalf of The Scottish Ministers
Buchanan House, 58 Port Dundas Road
For the attention of: Sarah Aitken
G4 0HF Glasgow
General address of the contracting authority: www.transportscotland.gov.uk
Further information can be obtained from: The above mentioned contact point(s)
Specifications and additional documents (including documents for competitive dialogue and a dynamic purchasing system) can be obtained from: The above mentioned contact point(s)
Tenders or requests to participate must be sent to: The above mentioned contact point(s)
Section II: Object of the contract
Service category No 18: Rail transport services
NUTS code UKM
Expressions of interest are now being sought from the market. Shortlisted potential operators will receive the Invitation to Tender planned to be issued in January 2014. It is anticipated that the successful bidder will be announced in October 2014 with the contract commencing in April 2015.
It is anticipated that the maximum length of the franchise will be 10 years (subject to the exercise of a discretionary option to extend for up to 26 reporting periods). There will be an appropriate mobilisation period prior to the commencement of operations in April 2015.
The existing ScotRail Franchise currently includes the provision of the Caledonian Sleeper Services. From the expiry of the existing ScotRail Franchise, it is anticipated that the Caledonian Sleeper Service will be delivered under a separate Franchise Agreement. Transport Scotland is engaged in a separate procurement process for the Caledonian Sleeper Service.
The ScotRail Franchise will involve the operation of intercity services between Glasgow, Edinburgh, Inverness, Aberdeen, Perth, Dundee and Stirling together with a number of commuter, tourist and sub-urban routes.
The franchise operator will also be required to manage the delivery of the EGIP electrification programme and the procurement and delivery of the EGIP rolling stock.
The franchise operator will be required to actively promote social, economic and environmental interests in the delivery of the franchise. Contract performance conditions may therefore relate to particular social, economic and environmental considerations.
Further details will be set out in the Invitation to Tender.
60200000, 60210000, 34620000, 34622200, 34622400, 45234112, 80530000
The franchise operator will be required to procure and introduce new(or equivalent) rolling stock to complement the delivery of the EGIP infrastructure enhancements and will work closely with Transport Scotland to ensure that the envisaged services are delivered. This will include: procurement, delivery and introduction of new(or equivalent) rolling stock; working with Network Rail, the infrastructure provider, and the Office of Rail Regulation to facilitate the introduction of the rolling stock and any consequential alterations to depot facilities; managing the return of displaced stock to the owning ROSCO; proactively supporting the integration of operations and new infrastructure to deliver an enhanced train service; implementing the delivery, marketing and retail of enhanced passenger services.
The franchise operator will be required to deliver Wi-Fi accessibility across the network and smart ticketing systems across Scotland during the franchise term.
The franchise operator will be required to operate the timetable that is in place at the start of the contract, and to prepare for and implement the changes applicable at key dates throughout the franchise term. The franchise operator will also be expected to negotiate Track Access rights with Network Rail.
The franchise operator will be required to enter into Station Access Agreements with Network Rail and the relevant train operating companies for stations where the ScotRail Service will call. The franchise operator will be required to make available enhanced passenger facilities at designated stations.
The franchise operator will be required to provide sufficient traction capability and rolling stock to provide the ScotRail Services. The franchise operator will be required to enter into Depot Access Agreements with the relevant depot operators for light maintenance used to support the ScotRail Services.
The franchise operator will be required to work with the infrastructure provider to facilitate the introduction of major network upgrades. The franchise operator will also be encouraged to explore opportunities for forming an alliance or similar alternative arrangements with the infrastructure provider and to consider the extent to which resultant efficiencies can be captured in their bid.
Although Transport Scotland is undertaking a separate procurement process for the Caledonian Sleeper Service, a contract award will only be made under that process if Transport Scotland is satisfied that the procurement identifies a value for money solution which meets Transport Scotland’s objectives. If an award is not made as a result of the procurement process for the Caledonian Sleeper Service, Transport Scotland may seek to include the Caledonian Sleeper Service as part of the ScotRail franchise. In this event, bidders for the ScotRail franchise will be required to put forward bids which include the the focussed management and development of the Caledonian Sleeper Service and utilise the proposed GBP 50 000 000 – 60 000 000 capital investment to be made by the Scottish Ministers for improvements to the Caledonian Sleeper Service rolling stock.
The Franchise Agreement will be based on the current ScotRail Franchise Agreement updated in light of market developments and to reflect franchise specific requirements set out in the Ministerial Statement on rail delivered in June 2012.
It is anticipated that the Franchise Agreement will include a profit sharing mechanism. The Franchise Agreement will include a mechanism for revenue support and sharing and rebasing of the subsidy following an initial period of operation.
Transport Scotland may invite or require bidders to submit Priced Options which will be further detailed in the ITT.
It is anticipated that staff currently employed wholly or mainly in the delivery of the ScotRail Services will transfer to the franchise operator in terms of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE). Further details will be set out in the Invitation to Tender.
It is anticipated that the franchise operator will continue to contribute as employer to the First ScotRail section of the Railways Pension Scheme.
Estimated value excluding VAT: 6 150 000 000 GBP
Section III: Legal, economic, financial and technical information
The potential provider appointed to operate the franchise should also have sufficient financial backing to place a season ticket bond. It is anticipated the season ticket bond value for the ScotRail Franchise will be between £5 million and £6 million.
The potential provider appointed to operate the franchise will be required to have a covenanted liquidity ratio for the Franchise duration. The franchise operator will be required to provide a parent company loan facility (or equivalent form of liquidity) in support of its obligation under the franchise. The value of the parent company loan facility (or equivalent form of liquidity) will be determined in accordance with the criteria set out in the Invitation to Tender.
The potential provider appointed to operate the franchise may also be required to put in place an advance payment bond where a capital investment is made available through the ScotRail franchise.
The information and formalities necessary to assess whether a potential provider qualifies to receive an Invitation to Tender will be contained in the Pre-Qualification Questionnaire and associated documents.
Section IV: Procedure
Some candidates have already been selected (if appropriate under certain types of negotiated procedures) no
Objective criteria for choosing the limited number of candidates: Transport Scotland anticipates issuing an Invitation to Tender to the top four ranked potential operators assessed in accordance with the criteria set out in the Pre Qualification Questionnaire and associated documents.
Prior information notice
Notice number in the OJEU: 2012/S 241-396562 of 14.12.2012
Payable documents: no
Section VI: Complementary information
The Franchise Agreement will be either a Part B Services Contract or a Services Concession Contract and is
out with the full scope of the Public Contracts (Scotland) Regulations 2012. Transport Scotland has elected to
treat the Franchise Agreement as a Part B Services Contract for the purposes of the procurement. Transport
Scotland is therefore voluntarily utilising an OJEU Notice. The process by which the procurement will operate
will be set out as appropriate in the Pre-Qualification documentation and the Invitation to Tender, and will be
compatible with any applicable EU law.
Transport Scotland will require to confirm that the subsidy granted to cover the costs incurred in discharging the obligations under the Franchise Agreement has been calculated in a way that prevents over-compensation in accordance with Regulation (EC) 1370/2007.
Transport Scotland expressly reserve the right (i) not to award any contract as a result of the procurement process commenced by publication of this notice; and (ii) to make whatever changes it may see fit to the content and structure of the tendering competition and the contracts; and in no circumstances will Transport Scotland be liable for any costs incurred by the bidders.
is communicated to tenderers. That notification will provide full information on the award decision. The standstill period, which will be for a minimum of 10 calendar days, provides time for unsuccessful tenderers to challenge the award decision before the contract is entered into. An economic operator that suffers, or risks suffering, loss or damage may bring proceedings in the Sheriff Court or the Court of Session.
VI.5)Date of dispatch of this notice:5.7.2013