Award

Study of HS1 Escrow Arrangements

OFFICE OF RAIL AND ROAD

This public procurement record has 1 release in its history.

Award

20 Jun 2018 at 14:30

Award Notice
Summary of the contracting process

The Office of Rail and Road is conducting a procurement process for a study titled "Study of HS1 Escrow Arrangements". This project falls under the category of financial consultancy services and is situated in London, England. The procurement is currently in the Award stage, having been completed recently with an award date of 14 June 2018. The contract, valued at £46,750, is expected to commence on 15 June 2018 and will run until 19 July 2018. This tender utilized an open procurement method, allowing broad participation.

This tender represents a significant opportunity for large consultancy firms specialising in financial analysis and asset management. Businesses with expertise in risk assessment, governance analysis, and transparency evaluation within complex contractual frameworks will find this procurement particularly relevant. Given the nature of the project, firms that can demonstrate experience in public infrastructure projects and an understanding of railway operations will be well-suited to compete for similar future contracts.

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Notice Information

Notice Title

Study of HS1 Escrow Arrangements

Notice Description

Overview HS1 Ltd holds a concession (until 2040) to operate, maintain and renew the railway network between London St Pancras and the Channel Tunnel. HS1 Ltd's revenue comes from track access, investment recovery and miscellaneous charges. These are paid by train operators to use the rail infrastructure. Arrangements for funding are set out in a Concession Agreement between HS1 Ltd and the Secretary of State which specifies that funds for renewals are held in an Escrow account managed jointly by HS1 Ltd and the Department for Transport. In addition, the Concession Agreement sets out obligations on HS1 Ltd to ensure the sustainability of the asset. These asset stewardship obligations require HS1 Ltd to deliver operation, maintenance, renewal, replacement, and upgrade of the infrastructure as if the company were responsible for the stewardship of the infrastructure for 40 years following the date at which any activities are planned or carried out. Many of the functions which HS1 Ltd must perform as infrastructure manager are currently contracted out to Network Rail (High Speed) Ltd (NR(HS)). The relationship between HS1 Ltd and NR(HS) is governed by an Operator Agreement, a commercial agreement between the parties. Escrow Account ORR is currently undertaking a periodic review of HS1 Ltd (PR19), which determines the level of charges that the company can levy for operations, maintenance and renewals. A key component of our determination requires us to set the quantum of funding required for future renewals expenditure (that is, how much should be deposited in the Escrow account). This requires us to take into account assumptions on many factors, including interest rates and the profile of the required renewal spend over the life of the concession. While the mechanism for the funding of renewals is constrained by the contractual arrangements set out in the HS1 Concession Agreement, it is important to us that the process is as transparent as possible. The Requirement We require a study to independently analyse the current arrangements around the Escrow account to: - identify issues and possible improvements to the allocation of risk between those involved (including train operators, HS1 Ltd, NR(HS) (as current principal contractor) and DfT), including an assessment of whether the current arrangements reflect best practice; - assess whether the governance of these arrangements is best practice; and - analyse the transparency and clarity of these arrangements. A Final Report is to be delivered to ORR by 19 July 2018. 2.2 Project Objectives & Scope Purpose The project is intended to deliver an independent analysis of the arrangements set out by the Concession Agreement between HS1 Ltd and Government for funding of renewals on the high speed network. It should also assess how these arrangements are working in practice.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-b5fd17-f9fa5ebf-f28f-49c9-8298-8b3cb9ece468
Publication Source
Contracts Finder
Latest Notice
https://www.contractsfinder.service.gov.uk/Notice/4c920742-e3e3-404f-985c-9a1d40815fb4
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Open
Procurement Method Details
Open procedure (below threshold)
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

66 - Financial and insurance services

CPV Codes

66170000 - Financial consultancy, financial transaction processing and clearing-house services

Notice Value(s)

Tender Value
£46,750 Under £100K
Lots Value
Not specified
Awards Value
£46,750 Under £100K
Contracts Value
Not specified

Notice Dates

Publication Date
20 Jun 20187 years ago
Submission Deadline
1 Jun 2018Expired
Future Notice Date
Not specified
Award Date
13 Jun 20187 years ago
Contract Period
14 Jun 2018 - 19 Jul 2018 1-6 months
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Not Specified
Awards Status
Active
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
OFFICE OF RAIL AND ROAD
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
LONDON
Postcode
WC2B 4AN
Post Town
Central London
Country
England
Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI3 Inner London - West
Small Region (ITL 3)
TLI35 Westminster and City of London
Delivery Location
Not specified
Local Authority
Westminster
Electoral Ward
St James's
Westminster Constituency
Cities of London and Westminster

Supplier Information

Number of Suppliers
1
Supplier Name

STEER DAVIES & GLEAVE

Further Information

Open Contracting Data Standard (OCDS)

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts. 

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