---
title: "Connect Radio and Transmission Services Contract: RON Variation"
ocid: "ocds-h6vhtk-03fd18"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-03fd18"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-03fd18.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-03fd18.json"
source: "Find A Tender Service"
current_stage: "Award"
buyer: "TRANSPORT FOR LONDON"
published: "2023-09-15"
---

# Connect Radio and Transmission Services Contract: RON Variation

Buyer: TRANSPORT FOR LONDON  
Current stage: Award  
OCID: ocds-h6vhtk-03fd18

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## Summary

The Transport for London (TfL) has awarded the contract for Connect Radio and Transmission Services Contract: RON Variation to Ground Transportation Systems UK Limited (GTS). The contract involves renewing existing data transmission networks to deliver a new multi-service network (MSN2) called the Renewed Operating Network (RON). The contract value is £192 million, signed on 4th September 2023. This procurement falls under the services category, within the maintenance services of telecommunications equipment. The procurement method used was a limited award procedure without prior publication. TfL aims to re-procure the management of the Connect System competitively upon the contract expiry, creating business opportunities for companies in the telecommunications and maintenance services sector.

The RON Variation contract offers growth opportunities for businesses dealing with radio transmission apparatus, telecommunications networks, and maintenance services of telecommunications equipment. The contract includes subcontracting opportunities for equipment and technical support services. GTS will be engaging subcontractors for various work packages to support the RON project. The procurement process aimed to retain GTS due to technical and economic reasons, avoiding inconvenience and duplication of costs for TfL. The contract also has an option to extend the term for up to 2 years beyond the current anticipated expiry date of 21st November 2026, providing stability for business planning and investment in the long term.

## Notice

LUL and Citylink Telecommunications Limited (CTL) entered into a 20-year PFI contract on 19 November 1999 (Connect PFI Contract) for a digital radio and transmission system (Connect System). In 2018, LUL entered into a contract with Ground Transportation Systems UK Limited (GTS) (f.k.a. Thales Transport and Security Limited), a CTL shareholder, for continuation of the Connect Services after 2019 (GTS Contract). TfL now wishes to (a) engage GTS to renew the existing data transmission networks to deliver a single multi-service network (called MSN2) (Renewed Operating Network or RON) under the GTS Contract (Proposed RON Appointment) and (b) extend the term of the GTS Contract for 12 months beyond its current anticipated expiry on 21 November 2026 (with an option for further extensions of up to 2 years) (Proposed RON Extension)(collectively, the Proposed RON Variation). As explained at II.2.4 and IV.1.1, LUL considers that the Proposed RON Variation is permitted under Reg. 88 of the Utilities Contracts Regulations 2016 (UCR). TfL intends, and is already in the process of preparing, to re-procure the management of the Connect System competitively upon the expiry of the GTS Contract as varied by the Proposed RON Variation. TfL considers that implementation of the Proposed RON Variation, as described below, will enable it to hold a more attractive and more effective competition for the management of the Connect System after expiry of the GTS Contract.

### Lot Information

Lot 1

The Connect System uses digital terrestrial trunked radio (TETRA) technology which, alongside other features, is highly reliable and ensures security and confidentiality of operational communications. The Connect System is critical to the operation of the LU railway, as it provides: (a) mission-critical voice radio between LUL control centres and train drivers; (b) mission-critical voice and safety alarms for train drivers and other railway staff; (c) fixed cable voice and data connections between stations; and (d) other signalling links and other links for a range of operational railway applications. GTS is responsible for the operation and maintenance of the Connect System. The TETRA radio system used for the Connect System was supplied by Motorola, using its Dimetra product, and is supported and maintained by Motorola as a contractor to GTS. The Connect System also comprises other elements of hardware and software, including both commercial off-the-shelf products and bespoke equipment or software designed specifically for the Connect System. The data transmission networks used in the Connect System include: a multi-services network (MSN) carrying IP-based applications, including radio data traffic, a data network based on asynchronous transfer mode transmission (ATM) carrying the CCTV data, and a data network based on synchronous digital hierarchy transmission (SDH) carrying various types of data such as telephone voice and text, radio data traffic and customer service information. These three data transmission networks are based on legacy technology. They have already, or are about to, become obsolete, meaning that it will no longer be possible to secure spares and the associated equipment and software ceases to be patchable or upgradeable. This obsolescence introduces risks which LUL has concluded must be mitigated given the operationally critical nature of the Connect System. TfL needs to address the obsolescence of the legacy data transmission networks, following its decision to continue to use the TETRA radio system until the mid-2030s, because the TETRA radio system requires a modern data transmission network with adequate bandwidth. That recent decision was based on TfL's own analysis and that of external consultants, which concluded that the alternatives to TETRA radio will not become available until the late 2020s and that, even after alternatives become available, TfL would need a number of years to migrate to the alternatives and mitigate the associated transitional risk. The GTS Contract contemplates some upgrades of the legacy data transmission networks as part of the pre-agreed upgrade works, as further detailed at paragraph Section VI below: however, such currently contemplated upgrade work is insufficient to mitigate these obsolescence risks. Therefore, to address the obsolescence of the legacy data transmission networks, TfL now wishes to carry out a renewal of the existing data transfer networks to deliver a consolidated multi-services network for the transmission of data between London underground sites (including stations, depots and control centres) (the MSN2 network). The renewed data transfer network will be constituted by a combination of existing, upgraded and refreshed network assets. This will require GTS to work with TfL, and with GTS' sub-contractors, to design, develop, build, migrate, commission and manage the Renewed Operating Network (RON) works to deliver the MSN2 network. By carrying out the RON works, TfL will be delivering on its established strategy of, wherever possible, adopting a multi-service approach, minimising the number of data networks it uses and ensuring that these data networks are designed and built so as to support multiple different use cases and have a much wider utility to TfL, both now and in future. The RON works are required to achieve this objective. Another important reason to carry out the RON works at this time is to ensure that upon expiry of the GTS Contract, LUL will have a more modern, functioning data network asset that is in-support. This will help TfL to re-procure the services to manage the associated assets after the expiry of the GTS Contract. TfL now wishes to (a) engage GTS to design, develop, build, migrate, commission and manage the RON work under the umbrella of the GTS Contract (Proposed RON Appointment) and (b) extend the term of the GTS Contract for 12 months beyond its current anticipated expiry on 21 November 2026 (with an option for further extensions of up to 2 years) to allow sufficient time for the delivery of the RON works (Proposed RON Extension) without first holding a new competitive bidding process. TfL wishes to implement the Proposed RON Appointment and the Proposed RON Extension as a single variation under the GTS Contract (collectively, the Proposed RON Variation). GTS has carried out a competitive procurement for all additional third-party equipment and support services required to deliver the RON works. GTS has reported to TfL on a transparent basis in relation to that procurement and GTS's proposed award of the contracts for the purchase of that equipment and support. Finally, TfL intends, and is already in the process of preparing, to re-procure the management of the Connect System competitively upon the expiry of the GTS Contract as varied by the Proposed RON Variation. TfL considers that implementation of the Proposed RON Variation, as described above, will enable it to hold a more attractive and more effective competition for the management of the Connect System after expiry of the GTS Contract.

Options: There is an option to extend the term of the GTS Contract (as varied by the Proposed RON Extension) by further extensions of up to 2 years which, if exercised, would give a maximum expiry date of 21 November 2029.

### Procurement Information

TfL considers that the Proposed RON Variation would not be a substantial modification of the GTS Contract, as Schedule 2.7 of the GTS Contract already provides for several upgrade projects to be undertaken by GTS on the legacy MSN system, some of which overlap with the RON work. Even if the Proposed RON Variation were a substantial modification, TfL considers that the exemption in Regulation 88(1)(b) UCR would apply, for the following reasons. The RON works have become necessary The RON works have become necessary because of the obsolescence issues with the existing three data networks (MSN, ATM and SDH) used by Connect. As explained in section II.2.4 above, these three legacy networks have already, or are about to, become obsolete, meaning that it will no longer be possible to secure spares and the associated equipment, and that software ceases to be patchable or upgradeable. This obsolescence introduces risks which LUL has concluded must be mitigated by the RON works, given the operationally critical nature of the Connect System. The RON works are also necessary to implement TfL's strategy of minimising the number of data networks deployed (thereby simplifying the support model) and, wherever possible, implementing data networks which can securely support multiple different uses, such as CCTV, signalling, Wi-Fi, etc. RON will achieve this by replacing the 3 legacy data networks under the Connect System (MSN, ATM and SDH) with one new data network which has much wider utility to TfL. The additional 12 months of the Proposed RON Extension have become necessary to allow for the completion of the RON works, plus a reasonable period of transition thereafter. A change of contractor cannot be made for technical reasons There are technical reasons why a change of contractor cannot be made: these are set out at VI.3 below. These factors demonstrate that engaging a new third party contractor to carry out the RON work would cause significant inconvenience and risk to TfL. A complex and costly interface would have to be put in place between the third party and GTS, which would be difficult for TfL to manage and would introduce new operational and network performance risks to the operation of the Connect System. Furthermore, any third party engaged to deliver the RON works would be interfering with a live network, creating additional operational risks. A change of contractor cannot be made for economic reasons There are also economic reasons why the RON works must be completed by GTS. Retaining GTS avoids the cost and complexity of managing the interface between GTS, in its role as operator, and any new contractor engaged to do the RON works. GTS' existing supply chains will allow it to upgrade the Connect infrastructure more cost-effectively than a third party. In relation to the additional operational and network performance risks resulting from the introduction of a new contractor for the RON works, which would need to be managed by GTS and the new contractor, GTS and the new contractor would be likely to charge TfL more for agreeing to take on such risks. Also, utilising GTS' existing facilities and management resources will minimise costs and overheads. A change of contractor would cause significant inconvenience and duplication of costs for TfL Contracting RON via a third party would also likely introduce significant programme risk, due to the inclusion of the associated procurement period, and the complexities of acceptance and handover into maintenance, prior to establishing a migration programme. Any delays to rolling out RON would be detrimental to TfL because it would need to continue to rely on obsolete network equipment which becomes increasingly hard to maintain, resulting in operational risk and significant additional costs. Such delays would also be likely to delay TfL's re-procurement of services for the management of the Connect System.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/027355-2023 |
| Notice type | Award Notice |
| Procurement type | Standard |
| Procurement category | Services |
| Procurement method | Limited |
| Procurement method details | Award procedure without prior publication of a call for competition |
| Tender suitability | Not specified |
| Awardee scale | Large |
| All stages | Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 15 Sep 2023 |
| Submission deadline | Not specified |
| Future notice date | Not specified |
| Award date | 3 Sep 2023 |
| Contract period | Not specified |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | Not specified |
| Lots value | Not specified |
| Awards value | Not specified |
| Contracts value | £192,000,000 |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Not specified |
| Awards status | Active |
| Contracts status | Active |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | TRANSPORT FOR LONDON |
| Locality | LONDON |
| Post town | East London |
| Postcode | E20 1JN |
| Country | England |
| ITL 1 | TLI London |
| ITL 2 | TLI4 Inner London - East |
| ITL 3 | TLI41 Hackney and Newham |
| Local authority | Newham |
| Electoral ward | Stratford Olympic Park |
| Westminster constituency | Stratford and Bow |
| Delivery location | TLI London |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | GROUND TRANSPORTATION SYSTEMS |

## CPV Codes

### Divisions

- 32 - Radio, television, communication, telecommunication and related equipment
- 50 - Repair and maintenance services
- 64 - Postal and telecommunications services

### Codes

- 32230000 - Radio transmission apparatus with reception apparatus
- 32412100 - Telecommunications network
- 32418000 - Radio network
- 50330000 - Maintenance services of telecommunications equipment
- 64200000 - Telecommunications services

## Release History

- 15 Sep 2023 at 12:44 - Award - Award Notice - https://www.find-tender.service.gov.uk/Notice/027355-2023

## Notice URLs

- http://www.tfl.gov.uk

## Provenance

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