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Financing of Rolling Stock

London North Eastern Railway Limited

This public procurement record has 2 releases in its history.

Award

06 Dec 2023 at 13:50

Award Notice
Tender

11 May 2021 at 09:40

Tender Notice
Summary of the contracting process

The London North Eastern Railway Limited (LNER) recently completed the procurement process for the "Financing of Rolling Stock" contract. The contract involved the design, manufacture, testing, and supply of a fleet of InterCity trains and associated equipment for use on the East Coast franchise. The procurement was carried out through a negotiated procedure with a prior call for competition. The initial term of the Operating Lease Agreement (OLA) was set for 8 years with opportunities for extension. The deadline for supplier participation was 7th June 2021, with an estimated contract value between £200-500 million.

This tender presents an opportunity for qualified rolling stock operating lessors to engage in a lucrative contract with LNER, offering financing for the fleet of new InterCity trains. Businesses with experience in financing large-scale rail projects and a proven track record in providing equity for rolling stock acquisitions would be well-suited to compete. The procurement is set to bring future growth opportunities for the successful financier, as the new trains are designed to enhance capacity and performance, ensuring uninterrupted services for passengers across the network.

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Notice Information

Notice Title

Financing of Rolling Stock

Notice Description

LNER commenced a procurement process with potential manufacturers for the design, manufacture, testing and supply (and associated maintenance activities) of a fleet of ten (10) InterCity trains (the "Base Order Units"), owner owned spares, special tools, simulator hardware and technical information, mock-ups (together the "Leased Equipment") and depot works for the use on the East Coast franchise. There was also an option to procure up to an additional five (5) trains (the "Option Units"). The trains will provide LNER with additional capacity to accommodate future growth and have performance characteristics that enable the fleet to be timetabled effectively amongst modern InterCity trains. The trains shall be fully rated for operation on 25kV overhead line equipment and have self-power capability for operation on non-electrified sections of the network and over non-electrified diversionary routes, increasing the flexibility of LNER's fleet and the ability to provide uninterrupted services during engineering works.

Lot Information

Lot 1

The subject of the procurement was financing for the Base Order Units, Leased Equipment, depot works and LNER's project costs by way of an Operating Lease Agreement (OLA) through a qualified provider of rolling stock operating leasing solutions. Further detail is set out in Section II.1.4. LNER chose to run the procurement under the negotiated procedure with a prior call for competition under regulation 47 of the Utilities Contracts Regulations 2016. The successful financier was chosen on the basis of the most economically advantageous bid based on the award criteria set out in the procurement documents.

Options: The OLA will have an initial term of 8 years and may be extended by LNER on multiple occasions provided that the aggregate duration of all of the extensions shall not exceed 8 years. Additional information regarding the initial term and any extension was provided in the procurement documents.

Renewal: The OLA will have an initial term of 8 years and may be extended by LNER on multiple occasions provided that the aggregate duration of all of the extensions shall not exceed 8 years. Additional information regarding the initial term and any extension is provided in the procurement documents.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-02af4f
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/035939-2023
Current Stage
Award
All Stages
Tender, Award

Procurement Classification

Notice Type
Tender Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Selective
Procurement Method Details
Negotiated procedure with prior call for competition
Tender Suitability
Not specified
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

66 - Financial and insurance services

CPV Codes

66114000 - Financial leasing services

Notice Value(s)

Tender Value
£500,000,000 £100M-£1B
Lots Value
£500,000,000 £100M-£1B
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
6 Dec 20232 years ago
Submission Deadline
7 Jun 2021Expired
Future Notice Date
Not specified
Award Date
8 Nov 20232 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Cancelled
Awards Status
Active
Contracts Status
Active

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
London North Eastern Railway Limited
Additional Buyers

London North Eastern Railway Ltd

Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
YORK
Postcode
YO1 6GA
Postcode Area
York
Country
England
Major Region (ITL 1)
TLE Yorkshire and The Humber
Basic Region (ITL 2)
TLE2 North Yorkshire
Small Region (ITL 3)
TLE21 York
Delivery Location
Not specified
Local Authority
York
Electoral Ward
Micklegate
Westminster Constituency
York Central

Further Information

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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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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